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Health

Johnson & Johnson JNJ earnings This autumn 2020 beat estimates

Johnson & Johnson Covid vaccine: Analysts are cautiously optimistic

Johnson & Johnson on Tuesday reported fourth quarter earnings and sales that exceeded Wall Street expectations. The company also said it would “soon” release important details about its coronavirus vaccine.

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

  • Adjusted earnings per share: $ 1.86 per share versus $ 1.82 expected.
  • Revenue: $ 22.48 billion versus $ 21.67 billion expected.

“I am incredibly proud of our Johnson & Johnson teams around the world who are committed to meeting stakeholder needs,” said CEO Alex Gorsky in a press release. “We are continuing to develop our COVID-19 vaccine candidate and look forward to publishing details from our Phase 3 study soon.”

J & J’s share price remained essentially unchanged in premarket trading after the report.

J & J’s pharmaceutical business, which is working on a coronavirus vaccine, had sales of $ 12.26 billion. This corresponds to an increase of 16% over the previous year as the demand for prescription drugs increased. The company’s consumer unit, which makes products like Listerine, had sales of $ 3.6 billion, up 1.4% year over year. The medical device unit generated $ 6.58 billion, down 0.7%.

The company forecast adjusted earnings of $ 9.40 to $ 9.60 per share and revenue of between $ 90.5 and $ 91.7 billion in 2021.

J&J is expected to release data from its Phase 3 study testing the Covid-19 vaccine this week.

US officials and Wall Street analysts are eagerly awaiting J & J’s nationwide approval of the vaccine, which could come as early as next month. Unlike the vaccines approved by Pfizer and Moderna, which require two doses three to four weeks apart, J&J only requires one dose. This means that patients don’t have to return for another dose, which simplifies logistics for healthcare providers.

Joseph Wolk, J & J’s chief financial officer, told CNBC Tuesday that the company expects the data from the Phase 3 study to be “robust.” He said it was possible that there were differences in results for people tested in places like South Africa, where there is a new, highly contagious strain of the virus.

Moderna said Monday it was working on a booster shot to protect against the strain seen in South Africa after it was found the current vaccine appeared to be less effective.

“It will be very comprehensive when it comes to specific ethnicities [such as] Blacks, Hispanics, and the elderly, “Wolk said on” Squawk Box. ” Because it is so diverse due to its geographical representation that it could provide many insights. ”

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Business

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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Business

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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Business

NRF mentioned vacation gross sales rose 8.3%, topping estimates

NRF said holiday sales rose 8.3%, topping estimates

People shop for vacation items at the country store on Main Street in Stockbridge, Massachusetts on December 13, 2020.

Joseph Prezioso | AFP | Getty Images

According to the National Retail Federation on Friday, holiday retail sales rose 8.3% from 2019 as consumers used the gift season as a way to cheer themselves up during the Covid pandemic.

“With the spread of the virus on the rise, government restrictions on retailers, and heightened political and economic uncertainty, consumers chose gifts that lifted the spirits of their families and friends and conveyed a sense of normalcy in the challenging year,” said Matthew Shay, president and CEO of the National Retail Federation, in a statement.

That is more than expected by the large retail group and more than double the average annual increase. NRF forecast in November that Christmas sales in 2020 will increase between 3.6% and 5.2% year over year, ranging from $ 755.3 billion to $ 766.7 billion. Americans were said to be spending more as they had less travel and dining expenses and were hoping for the Covid vaccine to be distributed.

Christmas sales have increased by an average of 3.5% over the past five years, and they have increased 4% in 2019, the NRF said. The sales exclude car dealerships, gas stations and restaurants.

The pandemic has messed up typical holiday shopping patterns. Many retailers started selling back in October and closed their shops on Thanksgiving. You have put more offers online and expanded contactless options, e.g. B. Roadside collection to reduce the number of shoppers in stores.

Even so, there were some factors that the retailer could not get hold of, such as economic insecurity and unemployment during the recession and fewer gatherings with family and friends.

NRF chief economist Jack Kleinhenz said the surge in Christmas sales was “truly phenomenal given the extremes this economy has been through”. He said the month-to-month numbers reflect push and pull of factors from temporary store closures and vacations to stimulus payments.

Ultimately, he said, consumer mindset and savings accounts inspired them to spend. He said the sales indicate that more people want a vacation that’s better than normal during a difficult year and that money has been put aside after they canceled their vacation and had fewer options to spend their money safely.

He said the desire to celebrate the holidays is great, even for low-income families and people who are unemployed.

“Vacation comes once a year and even the most economically challenged people still have an emphasis on vacation,” he said. “They will try to do the best they can.”

The Christmas sales also reflected pandemic trends such as: B. Cooking and sports at home and DIY projects. Online and other off-store sales saw the largest increase of nearly 24% year over year, according to the NRF.

Sales in building materials and gardening supplies stores rose nearly 20%. This was followed by sales of sports stores, which grew about 15%, and grocery and beverage stores, which grew nearly 10%. Sales in the health and personal care and furniture and home decor stores increased 5% and 2%, respectively.

Sales in general merchandise stores were virtually unchanged. However, sales in the electronics and housewares stores were down 14%. Sales in clothing and apparel accessory stores were down about 15%. Some laptop or pajama purchases were likely classified as online or non-in-store sales, as customers made purchases from their couches or used options like roadside pickup. Some electronics purchases may have been made earlier in the year when people were working at home and going to school.

Retailers have started reporting some of their individual sales results. Lululemon, which had strong sales in the leisure industry while working from home, forecast a fourth quarter profit at the high end of its expectations due to the strong holiday season. Comparable sales online and in-store rose 17% in November and December, according to Target, as vacation shoppers flocked to convenient, contactless options like roadside pickup. However, Nordstrom and Urban Outfitters reported disappointing holidays as many shoppers stayed away from malls.

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World News

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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Business

Lululemon (LULU) stories Q3 2020 earnings, gross sales beat estimates

Lululemon (LULU) reports Q3 2020 earnings, sales beat estimates

Lululemon Athletica store exterior, Ponce City Market.

John Greim | LightRocket | Getty Images

Lululemon reported sales of $ 1.1 billion on Thursday, up 22% year over year, beating analysts’ estimates as shoppers visited the retailer’s stores and website to purchase workout clothes during the reporting period.

In North America, net sales increased 19% driven by the e-commerce business. Overall, direct sales to consumers increased 94%, representing 42.8% of total sales, compared to 26.9% a year ago. This represents the sales that Lululemon makes directly to consumers through its stores and website with no intermediaries.

Due to the uncertainty surrounding the Covid-19 pandemic, which has forced it to temporarily close a handful of its stores again, Lululemon doesn’t offer a full outlook for 2020. Like others in retail, Lululemon faces the risk of additional store closings Coronavirus- Cases are still increasing in the US and other parts of the world.

However, CFO Meghan Frank noted that the company planned the holiday quarter “based on multiple performance scenarios” and believes it is “well positioned” for the holiday season. During the week of Thanksgiving and Black Friday, the company announced that its online business was generating record sales, offsetting the decline in store traffic.

Lululemon shares started to make gains, falling around 1% in after-hours trading shortly after 5pm. As of Thursday’s close of trading, Lululemon shares were up more than 59% year-to-date, bringing the company’s market cap to $ 48.1 billion.

Here’s how the retailer performed in the third quarter of fiscal year compared to analyst expectations based on refinitive data:

  • Earnings per share: $ 1.16, adjusted versus 88 cents expected
  • Revenue: $ 1.12 billion versus $ 1.02 billion expected

For the quarter ended November 1, Lululemon made $ 143.6 million, or $ 1.10 per share, compared to $ 126 million, or 96 cents per share, a year ago. Without a one-time charge, the company made $ 1.16 per share, better than what analysts had expected to be 88 cents.

Net sales rose 22% to $ 1.12 billion, beating analysts’ estimates of $ 1.02 billion.

In-store sales, tracking sales online and in stores that have been open for at least 12 months, increased 19%.

The company said sales for women were up 22% year over year, while those of men were up 14%.

While the entire apparel category has struggled this year, Lululemon is a retailer that has taken advantage of more consumers focusing on exercising at home during the pandemic and opting for comfortable sportswear over dresses and suits.

“While a V-shaped rebound may not happen for most of the apparel retail sector, Lululemon has recovered from a poor start to the year with impressive third quarter numbers,” said Neil Saunders, managing director of GlobalData Retail.

“Our data also shows that Lululemon has attracted a lot of new buyers, especially in women’s fashion,” he added.

Earlier this year, Lululemon also acquired home exercise equipment maker Mirror for $ 500 million to compete with the likes of bike maker Peloton. During the quarter, Lululemon announced it had started selling the startups’ $ 1,500 mirror-like devices in 18 stores and on its website.

The full press release on the result can be found here.