Delta Air Strains (DAL) earnings 4Q 21

A Delta Airlines aircraft lands at Kingsford Smith International Airport in Sydney, Australia on October 31, 2021 from Los Angeles.

James D Morgan | Getty Images

Delta Airlines said Thursday the surge in the Omicron variant of Covid-19 will result in a first-quarter loss, but that’s it still expected to make profits this year due to stronger travel demand.

In the fourth quarter, Delta reported its highest revenue since late 2019, thanks in part to strong vacation bookings and more business travel.

Revenue of $9.47 billion beat analysts’ expectations of $9.21 billion. The company has yet to fully recover from this Covid-19 Crisis. Revenue fell 17% from $11.44 billion in the last three months of 2019, just before the start of the coronavirus pandemic.

Delta’s shares rose more than 3% in morning trading after the company reported earnings. United and American each traded more than 4%.

CEO Ed Bastian said omicron is expected to delay the recovery in travel demand by 60 days.

“The next four to six weeks will be difficult,” Bastian said in an interview with CNBC.Squawk box” on Thursday. “What we’re seeing in the booking data is that the President’s weekend forward is looking really robust. Our numbers and bookings continue during this period. People are ready to travel.”

Delta committed $108 million to employee profit sharing, the first in nearly two years.

“Amid ongoing challenges, including one of the most difficult holiday environments we’ve ever encountered, you continue to rise and provide our customers with an unmatched service,” Bastian said in a note to employees on Thursday.

Here’s how Delta has performed versus analysts’ expectations, according to average estimates compiled by Refinitiv:

  • Adjusted earnings per share: 22 cents versus 14 cents expected.
  • Revenue: $9.47 billion versus $9.21 billion expected.

Delta posted a net loss of $408 million in the fourth quarter as fuel and other costs rose, due in part to disruptions from Omicron proliferation. Adjusted for one-time items, Delta reported earnings per share of 22 cents, up from the 14 cents Wall Street was expecting.

For the full year, Delta reported a profit of $280 million, the first in two years, thanks to $4.5 billion in federal aid for airline labor costs during the crisis. In 2020, after travel demand plummeted, Delta posted its biggest loss ever: $12.4 billion.

Delta is the first US airline to report fourth-quarter results and provide a detailed forecast of the variant’s impact on its business. Omicron’s rapid spread has hit theaters and restaurants retailers and Super Market.

Airlines, including Delta, have canceled thousands of flights since Christmas Eve as a surge in Covid infections among crews has led to staff shortages.

Delta said operations have stabilized and that Omicron has canceled just 1% of its flights over the past week.

But omicron will keep bookings under wraps in the short term, the airline said.

“Despite expectations for a loss in the March quarter, we remain positioned to deliver a healthy profit in the June, September and December quarters, leading to meaningful profit in 2022,” said Dan Janki, Delta’s CFO, in the profit announcement.

Investors have largely ignored omicron’s impact on airlines. Delta shares are up 3.9% this year through Wednesday United and American Stocks are up 6.3% and 3%, respectively. the S&P500, down 0.84% ​​in comparison.

Delta expects first-quarter revenue to be 24% to 28% below 2019 levels, with capacity 15% to 17% lower than it was flying three years earlier. It predicted a jump in costs of about 15% from 2019, excluding fuel.

Airlines have compared the results to 2019 to show how far business has recovered from pre-pandemic levels.

Challenges for Delta and other airlines this year include hiring more employees to meet travel demand, a challenge in a tight job market.

United Airlines is scheduled to report results after the market close on Wednesday, followed by American Airlines the next morning.

‘Odd time’ for markets however earnings matter once more

CNBCs Jim Cramer on Friday outlined his game plan for next week after Wall Street completed its first five trading sessions in 2022.

the “Bad money” The host said it was “a bit of an odd time” for the markets right now, “almost like many stocks have to take their medication and then get back on track.”

“This week we’ve seen the unprofitable technicians take a blow that then spread to the more mature, profitable ones,” said Cramer. However, he added, “It’s much easier to buy the stock of an established company that actually makes money.

Here’s what Cramer is keeping an eye on next week. All sales and profit estimates are from FactSet.

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Jim Cramer’s schedule for January 10th trading week.

Crazy money with Jim Cramer

Monday: JPMorgan Health Care Conference and Tilray Results

JPMorgan Health Conference

Now in its 40th year, the JPMorgan Health Care Conference is an extremely influential event, Cramer said, explaining that the company presentations made there are known to move stocks. The virtual conference starts Monday and lasts until Thursday.

Tilray

  • Q2 2022 result before the bell; Conference call at 8:30 a.m. ET Monday
  • Projected loss: loss of 7 cents per share
  • Expected sales: $ 200 million

Tuesday: Albertsons Profits and Dell Technologies Investor Meetings

Albertsons

  • Results for the third quarter of 2021 before the opening; Conference call at 8:30 a.m. Tuesday
  • Projected earnings per share: 61 cents
  • Projected sales: $ 16.34 billion

While Albertsons stocks have rebounded from their recent highs, Cramer believes the grocery chain stock has more headroom. He suggested that investors interested in owning the stock buy it on the Monday before the Tuesday quarterly release.

Dell Technologies

  • Virtual Fireside Chat on Tuesday at 3:30 p.m. ET

Chairman and CEO Michael Dell will speak at Bank of America’s View from the Top CEO Series, and Cramer said he would be interested in hearing the executive’s outlook following Dell’s spin-off from. has completed VMWare. Cramer said he personally believes the future is bright and advises investors to buy stocks before and after Tuesday’s scheduled presentation.

Wednesday: KB Home win

KB home page

  • Results for the fourth quarter of 2021 after close of trading; Conference call at 5 p.m. ET Wednesday
  • Projected earnings per share: $ 1.77
  • Expected sales: $ 1.71 billion

Investors are carefully watching the impact of higher interest rates on mortgage rates and thus on home demand, Cramer said. He said he believed KB Home shares could rise if announced on Wednesday as he expects strong results.

Thursday: Delta Air Lines wins

Delta Airlines

  • Fourth Quarter 2021 Earnings Before the Bell; Conference call at 10 a.m. ET Thursday
  • Projected earnings per share: 13 cents
  • Expected sales: $ 8.86 billion

Cramer said investors will focus less on how Delta’s business has gone and more on how the company expects it to be in the wake of the Covid pandemic.

“Do you think business travelers will come back? Can they man their planes? Are prices getting higher?” Cramer asked rhetorically. “While I like Disney for my charitable trust and think so American Express can continue, I’m skeptical of how far Deltas stocks can go in this environment. “

Friday: Income from Wells Fargo, JPMorgan, BlackRock and Citigroup

Wells Fargo

  • Fourth Quarter 2021 Earnings Before the Bell; Conference call at 10 a.m. ET Friday
  • Projected earnings per share: $ 1.10
  • Expected sales: $ 18.67 billion

Cramer, whose charity foundation has a sizable position in Wells Fargo, said he believes the bank will be strong in 2022. However, he admitted that the stock has got off to a hot start and is up about 14% year-to-date. He said it was not clear the pace could continue, but future pullbacks could offer buying opportunities.

JPMorgan

  • Fourth Quarter 2021 Earnings Before Opening; Conference call at 8:30 a.m. ET Friday
  • Projected earnings per share: $ 3.00
  • Expected sales: $ 29.85 billion

CEO Jamie Dimon “tends to be very optimistic but also mixes a few Molotovs along with his otherwise easily-discounted economic cocktails,” said Cramer.

BlackRock

  • Fourth Quarter 2021 Earnings Before the Bell; Conference call at 8:30 a.m. ET Friday
  • Projected earnings per share: $ 10.10
  • Expected sales: $ 5.12 billion

Cramer anticipates a strong quarter and looks forward to receiving insights into the company, the market and the economy from BlackRock CEO Larry Fink.

City group

  • Fourth Quarter 2021 Earnings Before Opening; Conference call at 11 a.m. ET Friday
  • Projected earnings per share: $ 1.55
  • Expected sales: $ 16.92 billion

Cramer said he is waiting to see if CEO Jane Fraser can make a comment bullish enough to move Citigroup stock up and allow it to catch up with some of its competitors. He also said he was looking for more information about Citi. December paused its share buyback program.

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Disclosure: Cramer’s charitable trust owns shares in Wells Fargo and Disney.

Hole (GPS) Q3 2021 earnings miss, cuts forecast

A Gap store in New York, August 2, 2020.

Scott Mlyn | CNBC

Gap Inc. Shares fell Tuesday after the company slashed its full-year outlook, falling short of fiscal third quarter results as Covid-related factory closings resulted in significant product delays in the quarter.

The stock lost about 16% on the news in extended trade recently, after rising about 16% year-to-date.

“We started the third quarter with increasing momentum, but acute headwinds in the supply chain hampered our ability to fully meet strong customer demand,” said Chief Executive Sonia Syngal in a press release.

Gap said it had invested in air freight to alleviate some of the challenges of port congestion over the holidays. However, this also means additional expenses that will affect profits in the short term.

For the three-month period ended October 30, Gap has performed compared to analyst expectations using refinitive data:

  • Earnings per share: 27 cents adjusted vs. 50 cents expected
  • Revenue: $ 3.94 billion versus $ 4.44 billion expected

Gap said it had risen to a net loss of $ 152 million, or 40 cents per share, on net income of $ 95 million, or 25 cents per share, the previous year.

Without an item, she earned 27 cents per share, according to Refinitiv, less than the 50 cents analysts were looking for.

Revenue decreased slightly from $ 3.99 billion a year ago to $ 3.94 billion. That fell short of expectations of $ 4.44 billion.

Supply chain problems will persist

CFO Katrina O’Connell said the backlog in US ports worsened significantly in the second half of this year, causing up to three consecutive weeks of unforeseen delays in Gap’s fall products.

While some of the disruptions are temporary, the challenges are likely to continue until early next year, she said.

Gap’s inventory levels decreased 1% year over year at the end of the third quarter and were unchanged from 2019. Gap expects inventory levels to grow in high single digits in the fourth quarter compared to last year.

“The situation in the supply chain remains volatile,” said O’Connell. “Newly opened Vietnam factories are on vacation.”

Lost revenue hurt Old Navy the most

Other clothing retailers including Victoria’s secret and Abercrombie & Fitchwho rely on Asia for production also said factory closures in Vietnam and clogged ports have resulted in their shelves not being as full as they would have liked in recent weeks.

Gap now expects full-year revenue growth of around 20%, which is less than the previous forecast of around 30%. Analysts surveyed by Refinitiv had expected an increase of 28.4% compared to the previous year.

Gap’s adjusted full year earnings expectations have been lowered to a range of $ 1.25 to $ 1.40 per share, from a previous range of $ 2.10 to $ 2.25 per share. Analysts had expected Gap to make $ 2.20 per share, Refinitiv said.

The company said its revised outlook includes about $ 550 million to $ 650 million in lost revenue due to supply chain restrictions and about $ 450 million in air freight costs for the year.

Old Navy has been disproportionately affected by supply chain delays, especially in the women’s range, Gap said. As a result, sales in the same stores decreased 9% year-over-year, but remained up 6% compared to 2019.

This is especially bad news for the company considering Old Navy has been a major growth engine for Gap over the past few quarters. It has made significant investments in Old Navy, including Revision of the plus-size clothing range. So slowing down at Old Navy is putting a bigger strain on the whole business.

For the Gap brand of the same name, sales in the same store increased by 7% compared to the previous year and by 3% compared to 2019. According to Syngal, the ongoing store closings have helped the brand experience healthier growth. Gap is also focusing on trimming back goods in the stores to keep the locations “brighter and brighter,” she said.

At Banana Republic, which is more focused on selling women’s workwear, sales in the same store increased 28% year over year and decreased 10% on a two-year basis.

Sales in the same store at Athleta, Gap’s rival Lululemon and Nike for women, increased by 2% compared to the previous year and increased by 41% compared to 2019.

A bright spot in Gap’s report was the apparel maker’s ability to increase its product prices. Gross margins were 42.1% for the third quarter, Gap’s highest rate for that period in 10 years. The company said the discount rate in the third quarter was also its lowest in five years.

The company is counting on that too a connection with rapper Kanye West’s Yeezy line will increase sales and attract new customers. On a phone call, Syngal said a Yeezy hoodie made the most sales in a day, online from a single item in Gap’s history.

Find Gap’s full earnings release here.

Lowe’s (LOW) Q3 2021 earnings beat

A customer pushes a shopping cart to the entrance of a Lowe’s store in Concord, California on Tuesday, February 23, 2021.

David Paul Morris | Bloomberg | Getty Images

Lowes On Wednesday, it exceeded analysts’ expectations for fiscal third quarter results as the company saw a surge in home improvement and online sales.

The home improvement retailer raised its forecast, saying it expects sales of $ 95 billion. It had previously forecast sales of $ 92 billion.

In pre-trading hours, stocks rose nearly 4%.

Here’s what the company reported for the third fiscal quarter ended October 29, versus Wall Street expectations, based on an analyst survey by Refinitiv:

  • Earnings per share: $ 2.73 versus $ 2.36 expected
  • Revenue: $ 22.92 billion versus $ 22.06 billion expected

Lowe’s profit rose $ 1.90 billion, or $ 2.73 per share, from $ 692 million, or 91 cents per share, a year earlier. The results surpassed what analysts surveyed by Refinitiv had expected to be $ 2.36 per share.

Net sales rose from $ 22.31 billion last year to $ 22.92 billion, above analysts’ expectations of $ 22.06 billion.

Lowe’s sales in the same store increased 2.2% for the three month period. According to StreetAccount, that was a clear difference to the analysts forecast of a decline of 1.5%.

A strong housing market has boosted sales for Lowe’s and its rival. Home depot. Even as the prices of houses and building materials go up, Americans keep buying. Builders’ trust increased this week, because of the great appetite for new single-family homes.

The dealers also saw customers Shop for paint, pillows, and more as they spent more time at home tackling do-it-yourself projects during the pandemic.

With consumers on the move again, Lowe’s and Home Depot are increasingly trying to attract the home improvement workers who homeowners hire to do renovations or upgrade their kitchens.

Home Depots the third quarter result reflected this shift, As customer transactions decreased, the average tickets increased 12.9% to $ 82.38. The retailer said the momentum continued into the fourth quarter, with sales starting a little above the third quarter level.

Under CEO Marvin Ellison, Lowe’s stepped up its efforts to attract professionals because they are more persistent and more money-conscious. Ellison said in a press release that the company’s sales to professionals rose 16% in the third quarter. He said sales on the website were up 25%.

Lowe plans to buy back $ 3 billion of shares in the fourth quarter, bringing total buybacks to $ 12 billion for the year. In the last quarter, it repurchased 13.7 million of its own shares for $ 2.9 billion.

Read the company’s press release here.

House Depot (HD) Q3 2021 earnings beat estimates

A customer partially wearing a mask at a store in Reston, Virginia on Thursday, May 21, 2020.

Andrew Harrer | Bloomberg via Getty Images

Home depot reported quarterly earnings and earnings on Tuesday that outpaced analysts’ earnings as customers spend more on home improvement projects.

Here’s what the company said, relative to Wall Street expectations, based on an analyst survey by Refinitiv:

  • Earnings per share: $ 3.92 versus $ 3.40 expected
  • Revenue: $ 36.82 billion versus $ 35.01 billion expected

The home improvement retailer reported net income of $ 4.13 billion, or $ 3.92 per share, for the third quarter, up from $ 3.43 billion or $ 3.18 per share last year. Analysts polled by Refinitiv expected earnings per share of $ 3.40.

Net sales rose 9.8% to $ 36.82 billion, beating expectations of $ 35.01 billion. Revenue in the same store increased 6.1% for the quarter.

AMC Leisure (AMC) Q3 2021 earnings

The AMC Burbank 16 and the Batman bronze statue in Downtown Burbank.

AaronP / Bauer-Griffin | GC images | Getty Images

Shares in AMC entertainment lashed Monday’s extended trading after the company posted a smaller-than-expected loss in the third quarter.

Here’s what the company said, relative to Wall Street expectations, based on an analyst survey by Refinitiv:

  • Loss per share: 44 cents vs. 53 cents expected
  • Revenue: Expected $ 763.2 million versus $ 708.3 million

AMC posted a net loss of $ 224.2 million, or 44 cents per share, for the third quarter. That loss is well below the $ 905.8 million, or $ 8.41 per share, that they lost in the year-ago period. According to Refinitiv, analysts had expected a loss of 53 cents per share.

The cinema chain reported revenue of $ 763.2 million, surpassing the $ 708.3 million analyst had expected.

The company’s shares initially rose after the results were released. However, as of 5:20 p.m. ET, shares were down 4.3%. AMC stock was the focus of this year’s meme stock frenzy, rising more than 2.025% in 2021.

AMC said all of its domestic cinemas were open on September 30th, as was 99% of its international theaters. The cinema chain found that it welcomed 40 million guests again in the US, Europe and the Middle East in the third quarter thanks to new blockbuster titles and rising vaccination rates.

During the quarter, the company posted entry revenue to $ 425.1 million from $ 62.9 million in the year-ago period. Food and beverage sales also rose to $ 265.2 million from just $ 29.1 million year over year.

Still, AMC’s operating expenses exceeded revenue, causing the company to post a loss for the quarter.

“Our financial results continue to improve,” said CEO Adam Aron in a statement on Monday. “You can see and feel that our industry and our company are on the way to recovery and improvement. That is why we are optimistic.”

“However, despite this good news, we are still not where we want and need to be,” he said. “We would like to emphasize that nobody should be under the illusion that there are not more challenges ahead of us. The virus continues to accompany us, we have to sell more tickets in the coming quarters than in the previous quarters. “Quarter, and the adjusted EBITDA is still well below the level before the pandemic.”

At the end of the third quarter, AMC had more than $ 1.8 billion in liquidity, including cash and undrawn revolving credit lines. Aron said the company doesn’t expect to have to borrow under these lines of credit in the next 12 months.

This liquidity has allowed AMC to explore and integrate new revenue streams. The company has already acquired new theater rentals, started offering new content such as concerts and sporting events, and it expands into popcorn retail.

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

Robust earnings might assist market overcome a traditionally robust interval

CNBCs Jim Cramer on Friday looked at the major market events of the next week after S&P 500 notched seventh consecutive day of winnings close with a record high of 4,697.53.

“We have to see if this rosy trend holds up until next week, a time that historically tends to produce some ugly sell-offs. … But if earnings stay strong, well, I think the stock market can stay strong. too, ”said Cramer.

Here’s what the “Bad money” Host will keep his eyes. All sales and earnings per share estimates are from FactSet.

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Jim Cramer’s schedule for November 8th trading week.

Crazy money with Jim Cramer

Monday: earnings from PayPal and AMC Entertainment; Events from AMD and Nvidia

PayPal

  • Q3 result after the bell; Conference call at 5 p.m. ET Monday
  • Projected earnings per share: $ 1.07
  • Expected sales: $ 6.23 billion

Cramer said owning PayPal for his charitable trust has so far been “a disaster” as the stock was recently crushed. “Dan Schulman, the CEO, has already warned us that this was going to be a tough quarter due to PayPal’s final split from eBay, but it’s already down more than 80 points, which seems excessive to me,” said Cramer.

AMC entertainment

  • Q3 results after close of trading; Conference call at 5 p.m. ET Monday
  • Projected earnings per share: loss of 53 cents
  • Expected revenue: $ 708 million

It’s hard to rate AMC now that it’s a meme stock with a very passionate group of retail investors who own it, Cramer said. “I bet CEO Adam Aron will do a great job on the call and individual investors will buy more so the stock will hold out because he knows how to give his shareholder base what it wants,” he said.

AMD

  • The data center accelerated premier on Monday at 11 a.m. ET

Cramer said he expected AMD CEO Lisa Su to tell a great story at Monday’s event. “I think AMD is well on its way to dwarfing Intel in market cap. … How the mighty have fallen,” he said.

Nvidia

  • The semiconductor company’s annual GPU technology conference Monday through Thursday

“Be prepared to be blinded,” said Cramer.

Tuesday: Wynn Resorts, Upstart Holdings, Coinbase and DoorDash

Wynn Resorts

  • Q3 results after the bell; Conference call at 4:30 p.m. ET Tuesday
  • Projected earnings per share: loss of $ 1.36
  • Expected revenue: $ 943 million

Cramer said he has been into Wynn Resorts for the long term and believes that “stock” will soar once business picks up in the Macau gaming hub. “Until then, pain,” he said.

Upstart stocks

  • Q3 results after close of trading; Conference call at 4:30 p.m. ET Tuesday
  • Projected earnings per share: 33 cents
  • Expected revenue: $ 214.9 million

The fintech company uses artificial intelligence to modernize the lending process.

Coin base

  • Q3 results after the bell; Conference call at 5:30 p.m. ET Tuesday
  • Projected earnings per share: $ 1.73
  • Expected sales: $ 1.57 billion

“The action in cryptocurrency has been pretty exciting lately, that should bring Coinbase higher even though it’s up. That means they have to let go of arrogance. You have to switch to chill mode, ”said Cramer.

by Dash

  • Q3 results after close of trading; Conference call at 5 p.m. ET Tuesday
  • Projected earnings per share: loss of 10 cents
  • Expected sales: $ 9.96 billion

The strength of Uber’s grocery delivery business in the third quarter could be a harbinger of strong results for DoorDash, Cramer said, suggesting the company “might blow the doors away.”

Wednesday: Wendy’s, Dutch Bros, Walt Disney Co. and Mastercard meeting

Wendys

  • Q3 results before the bell; Conference call at 8:30 a.m. ET Wednesday
  • Projected earnings per share: 18 cents
  • Expected revenue: $ 471 million

Cramer said he hopes Wendy’s, which he named his favorite fast food chain, can report numbers as good as McDonald’s latest results.

Dutch brothers

  • Q3 results after close of trading; Conference call at 5 p.m. ET Wednesday
  • Projected earnings per share: 6 cents
  • Expected revenue: $ 125.2 million

The Oregon-based chain has proven to be one of the hottest IPOs of the yearsaid Cramer. “This is a great regional to national growth story,” he said, but said he still had concerns about the stock’s valuation.

Walt disney co.

  • Q4 results; Conference call at 4:30 p.m. ET Wednesday
  • Projected earnings per share: 52 cents
  • Expected sales: $ 18.8 billion

Cramer said Disney’s report might be “rough”. He noted that some of his theme parks were underutilized and the movie list was “good, not great”. Meanwhile, its flagship streaming service Disney + also appears to be “slowing down,” he said.

MasterCard

  • The investor meeting begins Wednesday at 8:30 a.m. ET

While the company’s shares have collapsed recently, it’s important for Cramer to remember that Mastercard has benefited from consumer spending, and most importantly now, from the resumption of cross-border travel.

Thursday: tapestry and yeti

tapestry

  • Q1 2022 results before the bell; Conference call at 8 a.m. ET Thursday
  • Projected earnings per share: 70 cents
  • Expected sales: $ 1.44 billion

Cramer said any positive news from Coach and Kate Spade’s parent company should help push the stock to a new 52-week high of over $ 49.66 per share. The stock closed at $ 42.51 on Friday.

yeti

  • Q3 result before the opening; Conference call at 8 a.m. ET Thursday
  • Projected earnings per share: 60 cents
  • Expected revenue: $ 358 million

Cramer said he believes the company, known for its insulated mugs and coolers, is more than just a winner from the pandemic.

Friday: AstraZeneca and Warby Parker

AstraZeneca

  • Q3 result before the bell; Conference call at 7:45 a.m. ET Friday
  • Projected earnings per share: £ 92.54
  • Expected turnover: £ 7.04 billion

Of the companies that have developed Covid vaccines, Cramer believes there are “better fish to fry” than AstraZeneca.

Warby Parker

  • Q3 results before the Open; Conference call at 8 a.m. ET Friday
  • CNBC
  • Expected revenue: $ 133.1 million

Cramer said he was keen to learn more about Warby Parker in the eyewear maker’s first quarter results as a public company.

CORRECTION: This article has been updated to correct an incorrect comment that Wells Fargo recently discontinued fintech company Upstart. It has not.

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Ford (F) earnings Q3 2021

DETROIT – Ford engine Wall Street earnings expectations nearly doubled and third-quarter revenue forecast slightly exceeded, prompting the automaker to raise its annual forecast for the second time this year.

Here’s how Ford fared against Wall Street expectations, based on average analyst estimates compiled by Refinitv.

  • Adjusted EPS: 51 cents per share adj. vs. 27 cents per share expected
  • Automobile sales: Expected to be $ 33.21 billion versus $ 32.54 billion

Ford stock rose more than 8% during after-hours trading. The stock closed Wednesday down 2.7% to $ 15.51 per share.

Ford also said on Wednesday that it would be Reintroduction of the regular dividend from the fourth quarter, more than a year and a half later Suspension of payments in the early days of the corona pandemic.

New instructions

The automaker’s new adjusted earnings forecast for the full year is between $ 10.5 billion and $ 11.5 billion, down from $ 9 billion to $ 10 billion. Ford stuck to its adjusted free cash flow expectations of between $ 4 billion and $ 5 billion.

Baked into the new forecast are fourth-quarter expectations that include an increase in wholesale shipments from the third quarter onwards combined with a continued healthy mix of vehicles sold and net prices. These gains are expected to contrast with sequentially lower results from its financial sector, Ford said.

“The results really show the underlying strength of our business,” said John Lawler, CFO of Ford, on a phone call on Wednesday.

The company raised its guidance for the year, even though Lawler had previously said the second half of the year would be weaker than the first six months. He cited $ 3-4 billion in beneficial higher sales volumes, but said raw material costs, lower Ford Credit revenues, and other factors such as $ 500 million higher warranty costs detracted from year-end results.

‘There is more to come’

Ford cited strong demand for newer products such as the Bronco SUV and Mustang Mach-E, which the company said could reach 200,000 units sold per year worldwide.

“I believe we have the right plan to drive growth and unlock unprecedented value,” Ford CEO Jim Farley told investors on Wednesday during a call. “You are already seeing a positive change in the slope of our earnings and cash flow. There is more to come.”

On an unadjusted basis, Ford’s net income was $ 1.8 billion, up from $ 2.4 billion last year when dealerships and plants largely reopened after closing in the second quarter due to the coronavirus pandemic. The automaker reported adjusted earnings before taxes of $ 3 billion for the third quarter, up from $ 3.6 billion a year earlier.

Automobile sales were down 5% for the quarter, compared to $ 34.7 billion in the third quarter of 2020.

2022

Ford declined to provide a financial outlook for 2022, but Lawler said the company expects the chip shortage to persist through 2022 and possibly, to a far lesser extent, through 2023. He said Ford anticipates an increase in 2022 of wholesale vehicle volume by 10% compared to this year as the semiconductor shortage continues to affect business.

Lawler also said the automaker expects raw material costs to rise $ 3 billion to $ 3.5 billion in 2021 and could rise another $ 1.5 billion in 2022.

Ford received some bullish calls from Wall Street analysts for profit, including an appreciation from Credit Suisse to excel by neutral.

Ford’s greatest American rival, General Motors, announced Wednesday morning third-quarter earnings that exceeded Wall Street estimates. Despite the blows, GM’s stock declined more than 5% during intraday trading on the back of the automaker Lowering the free cash flow guidance for the year and fail to meet some investor expectations for the rest of the year.

Separately, Farley said on Wednesday Ford would postpone an over-the-air rollout of its BlueCruise hands-free freeway driving from this year to the first quarter of next year. The technology is seen as a new recurring revenue opportunity and is expected to catch up with other systems from competitors such as GM and Tesla.

What GM, Ford traders ought to know forward of third-quarter earnings

General Motors’ global headquarters are located in the Renaissance Center in Detroit.

Paul Hennessy | LightRakete | Getty Images

DETROIT – both General Motors and Ford engine are expected to report solid third-quarter results on Wednesday despite an ongoing global disruption in supply chains, including a shortage of semiconductor chips that have depleted vehicle inventories but increased profits this year.

Both Detroit automakers did their best during the disruptions, allowing them to raise their earnings expectations for the year on record vehicle prices and earnings amid surprisingly robust consumer demand. According to analysts, this is likely to be an ongoing trend as the auto industry rebuilds inventory levels as more productions come back online in the coming weeks and quarters.

“Both should not only benefit from favorable fundamentals in an upward cyclical environment, but both have a significant opportunity to improve the perception of their long-term positioning in an EV / AV world,” Credit Suisse analyst Dan Levy said last week in an investor announcement.

Here’s what Wall Street analysts expect from every automaker’s third quarter results, as well as other things investors should know before GM reports ahead of Wednesday’s market opening, followed by Ford after the market closes.

Wall Street estimates

Analyst estimates from Refinitiv assume that GM will post earnings per share of 96 cents and sales of 26.5 billion US dollars, 25.3% less than last year.

According to Refinitiv, Ford will have earnings per share of 27 cents on auto sales of $ 32.5 billion, down 6.2%.

Expectations for the second half of the year

GM previously warned investors that its North American wholesale volume decreased by about 200,000 units in the second half of 2021 compared to the first half of the year. The company has maintained its financial guidance for the year, including adjusted earnings between $ 11.5 billion and $ 13.5 billion, or $ 5.40 to $ 6.40 per share. It made around $ 6.2 billion, or $ 4.21 per share, for the first six months of the year.

GM anticipates a $ 3.5 billion to $ 4.5 billion plunge in the second half of the year due to a $ 1.5 billion to $ 2 billion increase in raw material costs and lower revenue from its financial sector.

In July, Ford raised its guidance for the year, but informed investors that the second half of the year would be weaker than the first in terms of operating profit, which stood at $ 5.9 billion through June. At the time, the company raised its forecast for adjusted earnings before taxes for the full year by approximately $ 3.5 billion to $ 9 billion to $ 10 billion.

Deutsche Bank analyst Emmanuel Rosner assumes that both automakers will head towards the upper end of their previous ranges, if not even above.

“We expect both Ford and GM to beat consensus third quarter estimates and maintain / raise annual guidance. In addition, we see several potential catalysts on the horizon for both companies, ”he said in an investor note on Monday, citing electric and autonomous vehicle developments.

EVs / AVs

While automakers are pouring billions into electric and autonomous vehicles, the segment won’t add much to third-quarter earnings.

Both automakers released key new details last quarter about their plans for both emerging sectors, including a $ 11 billion investment by Ford in U.S. electric vehicle and battery manufacturing facilities.

GM clearly outlined financial goals like doubling sales and increasing profit margins to 12% to 14% by 2030 on an Investors Day earlier this month. The majority-owned subsidiary Cruise also said it is expected to begin charging a robot taxi service as early as next year in San Francisco pending final regulatory approval.

During the quarter, GM also said it would recognize an estimated rebound in the third quarter that included $ 1.9 billion of $ 2.0 billion in costs related to an ongoing recall of its Chevrolet Bolt EVs as part of a settlement with LG will make up for the defective batteries.

Partial structures

Ford stock is up about 80% this year, so investors will be looking for additional charges on the automaker over the next year.

You’ll also want to see any updates on the production and shipping of Ford’s F-series pickups, some of which automakers, like GM, built to get ready when chips become available.

Steve Carlisle, GM’s North American CEO, last week completed more than half the delivery of the newly assembled pickups he parked due to a shortage of semiconductor chips, according to Reuters.

When GM reported a 32.8% year-over-year sales decline for the third quarter earlier this month, GM said the semiconductor chip market had improved. November 1st is expected to be the first time since February that none of GM’s North American assembly plants will shut down due to chip shortages. However, two remain off to be retooled, and some work in fewer shifts.

GM stock is up about 40% in 2021.

– CNBCs Michael Bloom contributed to this report.

Chipotle Mexican Grill (CMG) Q3 2021 earnings beat

A customer carries a Chipotle Mexican Grill Inc. bag outside a restaurant in San Francisco, California, United States on Monday, July 20, 2020.

David Paul Morris | Bloomberg | Getty Images

Chipotle Mexican Grill on Thursday reported quarterly earnings that drove Wall Street estimates as menu price increases helped the chain absorb higher costs.

The company’s shares rose more than 1% in expanded trading.

Here’s what the company said, relative to Wall Street expectations, based on an analyst survey by Refinitiv:

  • Earnings per share: $ 7.02 adjusted versus $ 6.32 expected
  • Revenue: $ 1.95 billion versus an expected $ 1.94 billion

The company reported net income of $ 204.4 million, or $ 7.18 per share, for the third quarter, compared to $ 80.2 million or $ 2.82 per share a year earlier.

Beef and freight costs were higher, but menu price increases offset the effects of those increased spending. In June, the chain announced that menu prices would increase by about 4% to cover the cost of increasing restaurant workers’ wages to an average of $ 15 an hour.

Excluding tax breaks, restructuring charges, and other items, Chipotle earned $ 7.02 per share, beating the $ 6.32 per share analyst survey surveyed by Refinitiv had expected.

Net sales rose 21.9% to $ 1.95 billion, beating expectations of $ 1.94 billion. Sales in the same store rose 15.1%, beating StreetAccount’s estimate of 14%.

Digital sales rose 8.6% after more than tripling a year ago. The company’s loyalty program has gained 24.5 million members in two and a half years, helping Chipotle learn more about its customers and encourage more frequent visits.

“There’s no doubt that the loyalty program has moved from crawling to walking, and we still have plenty of room to grow,” said CEO Brian Niccol on the conference call.

At the end of the quarter, the chain Smoked breast introduced as a time-limited menu option. Due to the strong demand, the item’s availability will end a little earlier than originally planned in November. Under Niccol, who previously directed Yum Brands’ Taco Bell has accelerated the process of adding new menu items through a process it calls stage-gate testing. The chain has been strategic with new releases and many of them have limited time options to drive customer traffic to their restaurants and keep the menu from bloating.

The company opened 41 new restaurants in the quarter. Only five of these locations did not have a “Chipotlane”, a drive-through lane intended for the collection of digital orders. Executives said the company is still facing inflation in building materials, shortages in labor and equipment from subcontractors, and delivery delays from landlords.

Looking ahead to the fourth quarter, the company is forecasting low to mid double-digit revenue growth in the same business. Chipotle noted several uncertainties weighing on the business, such as inflation, workforce pressures, and Covid-19.

“Despite these challenges, we remain confident that we can increase the margins in the restaurant with increasing average quantities,” said CFO Jack Hartung.

Chipotle also announced that its board of directors has approved an additional $ 100 million in share buybacks, bringing its total approval to $ 209.8 million as of September 30th. The company repurchased $ 98.7 million in shares in the third quarter.

Read the full announcement of the results here.