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Apr 25, 2019
Tesla has reported a loss of $702 million during the first quarter and predicts it won't go back to profitability until the third quarter of 2019. The electric car manufacturer ended the quarter with $2.2 billion in cash, a reduction of $1.5 billion mainly due to the fact it had to repay a $920 million bond. Despite these results, Tesla has pledged that it's still on track to deliver 360,000 to 400,000 this year. Analysts believe that Tesla's performance is similar to the current state of the auto market worldwide, which is the reason why Tesla has focused more on touting its self-driving technology as an alternative source of revenue.
Apr 25, 2019
Facebook has said that it is setting $3 billion aside to cover the potential costs of an investigation that faces in the U.S. due to privacy concerns. Facebook made the announcementment as part of its quarterly report where it showed strong performance despite the antitrust concerns surrounding the company. Facebook reported a growth in sales of 26% compared to the same period last year for a total of $15.08 billion, while monthly users rose 8% to reach $2.38 billion. Facebook is facing an investigation related to the Cambridge Analitica scandal and has faced controversy after videos of the Christchurch shooting in New Zealand surfaced on the platform.
Apr 25, 2019
Drugstore chain CVS Health has unveiled plans to bring SmileDirectClub to hundreds of locations across the US this year, with plans to open over 1,000 within the next two years. Customers will have the chance to go to one of the SmileShops and get their teeth 3D scanned to be fitted for a pair of invisible braces. Back in January, CVS started the pilot program at six of its locations but was later expanded to 13. However, the program proved to be so popular that now CVS is taking it nationwide. CVS Health and other drugstore chains are trying to offer more services to compete against online retailers like Amazon that have cut into its business.
Apr 25, 2019
Altria, the maker of cigarette brand Marlboro, posted quarterly results that showed earnings dropped 41% during the quarter. The main issue for Altria was that its an investment in Canadian cannabis company Cronos ate into its profits for the quarter and led to the company being downgraded by two rating companies. Altria reported net income of 60 cents per share, down from $1 per share from a year ago, and the company had to issue new debt to finance its $1.8 billion investment in Cronos and a $12.8 billion stake in e-cigarette manufacturer Juul. Altria is counting on Juul and Cronos to stay profitable as the core cigarette business dropped 14% from the same period last year.
Apr 25, 2019
Ford Motor Company announced this week that it was investing $500 million in EV startup Rivian so both companies will work to develop a new generation of electric vehicles. However, sources claim that both firms made the deal thanks to General Motors backing down a few weeks before. According to sources, GM was asking too much from the startup, including exclusive rights over Rivian's technology, something that the EV manufacturer didn't like and decided to step dowm. Eight weeks later, Ford announced its investment, adding that Rivian would still work as an independent manufacturer to launch new models and a network of leaderships.
Apr 25, 2019
Southwest Airlines took a hit during the first quarter as the company was forced to cancel over 10,000 flights due to the grounding of the Boeing 737 Max for its involvement in two deadly crashes. The airline stated that it had a loss of more than $200 million in revenue as a result of the grounding, adding that the government shut down, and the company's mechanical issues were also an essential factor. However Southwest managed to narrowly beat earnings and revenue expectations and shares rose 2.5% after the news. CEO Gary Kelly said the results for the quarter were solid and congratulated the airlines 60,000 employees for their hard work to keep the company afloat.
Apr 25, 2019
Comcast has reported earnings for the quarter that beat expectations, the company reported revenue for $8.2 billion, a 12.5% drop from the same period last year, and it fell short of expectations as the number of video subscribers declined. Comcast indicated that the reduction in revenue was highlighted when analysts compared the figures to the first quarter of 2018, which had the Super Bowl and the Winter Olympics to attract new customers. Comcast also lost 122,000 video subscribers, up from 96,000 from a year earlier, but the company expects that its new ad-supported streaming service coming in 2020 will offset the drop in video subscribers.
Apr 25, 2019
PayPal's venture capital arm has made an investment of $11 million in Happy Returns, making this the most successful funding round that the startup has had and bringing the total to $25 million. Happy Returns has more than 350 Return Bars throughout the U.S. for shoppers to return items they have bought online in case the retailer doesn't have a physical location. CEO David Sobie stated that PayPal's investment was huge validation since both strive to make e-commerce as seamless and easy as possible. Statistics show that customers return 15% to 40% of the items they buy online, making a service like Happy Returns a necessity when they retailers don't have a physical location.
Apr 25, 2019
U.S. manufacturing conglomerate 3M has posted quarterly results that fell short of what most analysts were expecting. 3M fell short of expectations with earnings per share for about $2.23, while analysts expected $2.49, and the company also fell short in revenue. 3M also announced that it plans to cut 2,000 jobs worldwide as part of the company's efforts to restructure as it struggles to stay profitable in crucial markets. The company lowered its outlook for 2019 to $9.25 per share, down from a previous forecast between $10.45 and $10.90 per share. The job cuts come as the company is trying to restructure its business from five operating units to four, which would help the company save about $250 million annually.
Apr 25, 2019
Chipotle Mexican Grill reported earnings and revenue that beat all expectations as the company continues to impress investors with its impressive growth. Chipotle had exceptional same-store sales growth of 9.9% against expectations of 7.29%, but most notably, digital sales grew 100.7% during the quarter, accounting for more than 15% total sales. Chipotle's revamped loyalty program has been crucial to this growth as it has reached more than 3 million members that have stayed loyal with the company even after special promotions have ended. The company also has a collaboration with delivery service DoorDash and has been able to stay profitable even considering the hefty fees that third-party delivery services charge, something that is considered rare in the industry.
Apr 24, 2019
Kraft Heinz has considered selling its Ore-Ida frozen potato business as the company struggles to restructure and pay its debt. According to sources, Kraft Heinz has looked for the help of investment bank Evercore Partners to prepare for a potential sale, and the company is looking to get about $1.5 billion for the unit but is willing to hear offers. Although Kraft Heinz is focused on selling its frozen potato unit, sources claim that the company is open to shedding other parts of the frozen food business, including brands like Devour and Smart Ones. The priority for Kraft Heinz is to get rid of brands that it believes would struggle to compete against the in-house goods pushed by retailers.
Apr 24, 2019
Hasbro beat all expectations when it posted surprise earnings for the quarter against all the odds. The toymaker reported earnings of 21 cents per share while most analysts expected a loss of 11 cents per share, and CEO Brian Goldner states that the company has seen growth across multiple segments. Hasbro took a hit last year after Toys R' Us closed its doors, leaving the company with excess inventory, but Goldner has worked hard to turn Hasbro around, making investors feel confident that the company will bounce back. The CEO stated that the company has seen growth in its gaming platform, emerging brands, and franchise brands, adding that Hasbro's investment in its digital platform is already paying off.
Apr 24, 2019
Caterpillar has posted financial reports that beat analysts expectations for the quarter. The industrial giant posted earnings of $2.94 per share, compared to analysts' expectations of $2.85 per share; the company was also able to beat sales expectations narrowly. Caterpillar CFO has stated that the company's sales in China have suffered due to aggressive pricing competition and slowing construction demand. Although the construction industry is expected to bounce back in China, most analysts think that the company might lose some market share. Caterpillar stock is considered a measurement for the state of the global economy, and in January it plunged after signs that the Chinese economy was slowing down, but Caterpillar ended up posting record revenue for the year.
Apr 24, 2019
Boeing has announced that it is withdrawing its 2019 guidance for considering that the forecast was issued before the company had assessed the impact of the 737 MAX grounding. Boeing said in a statement that new guidance would be released when the time is right because at the moment there's too much uncertainty regarding the future of the 737 MAX, which has been grounded since early March due to two deadly crashes. The company also offered first-quarter earnings that met Wall Street's expectations, but revenue slipped slightly. The company's cash flow reached $2.8 billion during the quarter, a 10% drop from the period in 2019.
Apr 24, 2019
Lululemon is confident that the business can grow exponentially over the next five years, especially in online sales and men's apparel. Lululemon is mostly focused on making sports bras and leggings, but it stated that it expects to double sales of its men's business, and quadruple international revenue by 2023. Lululemon shares have been on a tear over the last 12 months, gaining over 80% in the stock market and sparking competition from brands like Under Armour and Nike looking to get into the women's segment. Although Lululemon faces increasing competition in the women's category, the company states that the biggest opportunity for growth is the men's business, which is on track to making $1 billion annually.
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