Tesla TSLA earnings Q3 2021

Tesla reported third quarter results after the bell Wednesday, and it’s a blow in terms of both sales and earnings.

The company’s stock was down 1.5% after the close of business. Here are the results.

  • Earnings per share (adjusted): $ 1.86 versus $ 1.59 per refinitive
  • Revenue: $ 13.76 billion versus $ 13.63 billion per refinitive

The company reported net income of $ 1.62 billion (GAAP) for the quarter, exceeding $ 1 billion for the second time. For the year-ago quarter net income was $ 331 million.

The record results were driven by improved gross margins of 30.5% in the automotive business and 26.6% overall, both records for at least the past five quarters.

Auto sales rose to $ 12.06 billion and auto sales cost for the quarter was $ 8.38 billion.

Tesla also posted revenue of 806 million in previous financial filings.

In the energy and storage businesses, the cost of sales rose to the highest level in the last five quarters of $ 803 million in the third quarter.

In a shareholder deck Tesla released ahead of a call to discuss third quarter results, the company said, “A variety of challenges, including semiconductor shortages, port congestion, and rolling power outages, have hampered our ability to keep factories running at full speed.”

Despite these problems, the company reiterated its previous forecast that it expects “an average annual growth in vehicle deliveries of 50%” over a multi-year period.

In the third quarter, Tesla recorded an impairment loss of $ 51 million related to its investment in Bitcoin, which was reported under “Restructuring and other” charges.

Tesla had before disclosed deliveries of 241,300 electric vehicles and production of 237,823 vehicles in the period ended September 30, 2021.

Unlike other automakers, Tesla’s sales soared in the quarter, setting a new company record, despite chip shortages and supply chain challenges weighing on the industry. (Deliveries are the closest approximation of Tesla reported sales.)

Many other automakers have reported record profits during the semiconductor die shortage due to robust consumer demand, but have been unable to generate better sales due to supplier restrictions.

In a shareholder deck for the third quarter of 2021, Tesla remained non-binding regarding the start date for production of the highly anticipated cybertruck. The company is just saying that production of the nontraditional truck will begin sometime after the Model Y starts production in Austin, where Tesla is building a new vehicle assembly plant.

Tesla also said in the deck that for all vehicles in the standard range, “The chemistry of lithium iron phosphate batteries (LFP) is being used around the world.”

Previously, Tesla used lithium-ion battery cells with nickel cathodes in its standard vehicles for customers in North America. Because iron is more abundant than raw materials used in other lithium-ion battery cells, such as nickel and cobalt, LFP batteries are generally cheaper to manufacture.

The two leading manufacturers of such battery cells are CATL and BYD in China. Tesla is already sourcing batteries from CATL, the companies previously announced.

Analysts asked Tesla executives on Wednesday if they plan to source all of their LFP batteries from China. Tesla’s senior vice president of powertrain and energy engineering, Drew Baglino, said the company’s goal is to “localize” automotive and battery production as much as possible to the continents where cars are made. That goal extends to battery cells, he suggested.

Shareholders also asked Tesla how the company would deal with a tougher or more critical federal vehicle safety regulator.

The National Highway Traffic and Safety Administration is currently investigating Tesla for possible safety flaws in its autopilot driver assistance system following a series of accidents in which Tesla drivers collided with parked first aid vehicles while using the autopilot.

Tesla’s vice president of automotive technology, Lars Moravy, spoke of Tesla’s relationship with NHTSA as a partnership when he called on Wednesday. “We always cooperate fully with NHTSA,” said Moravy. As NHTSA figured out the rules and regulations for vehicles with more software-enabled features, he added, “We’re excited to be a part of this journey.”

The comments contrasted with statements made by Tesla CEO Elon Musk. Musk previously accused the Biden government of generally anti-Tesla bias.

And this week, Musk complained about a new NHTSA safety advisor, Missy Cummings, to his tens of millions of followers on Twitter.

Cummings, a professor of engineering and computer science at Duke University, previously criticized Tesla’s approach with the driver assistance systems, which it markets as autopilot and full self-driving options. None of the systems make Tesla vehicles autonomous or safe for use without a driver at the wheel.

“Objectively, their track record against Tesla is extremely biased,” Musk wrote.

US Secretary of Transportation Pete Buttigieg said at a press event on Wednesday, “He’s welcome to call me if he’s concerned.”

Last quarter, Musk said he would no longer make phone calls By default.

The bombastic CEO chose not to speak in front of shareholders and analysts on Wednesday, and the profit call was as known as Musk when compared to previous quarterly calls offended analysts, or called pandemic health orders fascist.

Correction: Due to a processing error, the components of Tesla’s service revenue were incorrectly reported in an earlier version of this article. FSD subscriptions are counted as part of automotive sales.

– CNBCs Michael Wayland Reporting contributed.

Walgreens Boots Alliance (WBA) This fall 2021 earnings beats

Walgreens Boots Alliance surpassed Wall Street’s expectations for fourth quarter earnings on Thursday as the company saw demand for Covid-19 vaccines spike in the midst of a growing number of employer mandates.

The profits were released for virtual investors a day ago on the Walgreens CEO Roz Brewer, who joined the company earlier this year, outlined her strategy to refresh the corporate brand and drive growth.

Shares closed 7.4% to $ 50.77 on Thursday as investors processed the drugstore chain’s ambitious plans to transform into a healthcare-focused company. An integral part of that strategy was that Announcing a $ 5.2 billion investment in VillageMD, a primary care company opening clinics in Walgreens stores.

The majority stake in VillageMD will not only help Walgreens fill out prescriptions but also have doctors to write them out.

In the fourth quarter, Walgreens administered 13.5 million vaccines – almost double the expected 7 million in the three-month period. It’s ready for another wave of vaccinations as people get booster doses and It is expected that younger children will soon qualify for the recordings.

“Mandates matter,” said CEO Roz Brewer in an interview with CNBC’s Bertha Coombs. “There are a lot of companies and organizations, cities and towns that have mandates and I think it forces people to say, ‘I have to go to work. So I have to get this vaccine.’ So it creates an increase. And we see that in our shops. “

Besides, she said, people worry Covid – especially with the Delta variant. Along with the vaccination repeal, Walgreens said it had seen a boost in sales from home-based Covid testing and a recovery in demand for over-the-counter medicines for colds, coughs and flu.

Walgreens also said it achieved its goal of cutting the annual cost of its business a year ahead of schedule. CFO James Kehoe said the cost savings target would be increased to $ 3.3 billion by fiscal 2024.

He said the company expects flat adjusted earnings per share growth at constant exchange rates in fiscal 2022.

Here’s what Walgreens reported versus analyst expectations for the fourth quarter ended August 31: based on refinitive data:

  • Earnings per share: adjusted $ 1.17 versus expected $ 1.02
  • Revenue: Expected $ 34.26 billion versus $ 33.30 billion

For the quarter, net income rose to $ 627 million, or 72 cents per share. from $ 373 million, or 43 cents per share, last year. Walgreens made $ 358 million, or 41 cents per share, from its continuing operations in the most recent quarter.

With no items, however, the company made $ 1.17 per share, beating the $ 1.02 analysts surveyed by Refinitiv had expected.

Sales rose to $ 34.26 billion from $ 30.37 billion a year earlier, more than analysts’ forecast of $ 33.30 billion.

Sales online and in Walgreens stores in the US that were open for at least a year increased 8.1% year over year as consumers got Covid-19 vaccinations and filled out more prescriptions. Health and wellness product sales rose 14% year over year as consumers bought more Covid tests, vitamins and over-the-counter medicines for coughs, colds and flu at home.

Brewer said Covid vaccines had a “halo effect” when sold locally. When people went to the pharmacy for the syringe or waited 15 minutes, they bought some other goods, from beauty items to allergy medication. She said Walgreens wants to increase the number of other types of vaccines it delivers, for hepatitis B and more.

Brewer also told CNBC that the company Will take a close look at tobaccothat it kept on the shelves despite its rival CVS health drop the products.

Its international segment – which includes UK chain Boots – is recovering after the Covid-19 restrictions were lifted in July. Compared to the same quarter last year, sales online and in Boots UK stores that are open for at least a year increased 11.4% in pharmacy services and 15% in retail.

Pedestrian traffic in boat shops on highways, such as near offices and commuter centers, is recovering but is still below pre-pandemic levels, the company said.

The drugstore chain said it has given more than 40 million Covid vaccines to date. Vaccinations peaked in the third quarter with 17 million vaccinations.

At the close of trading on Thursday, the shares of Walgreens Boots Alliance are up about 27% this year. The company’s market value is nearly $ 44 billion.

Read the company’s press release here.

What’s Coming Up on Cash & Markets + Lululemon Earnings Preview

Money and Market Economy Week Week of September 6, 2021: The financial markets are closed on Mondays, but there is still a lot to add to the calendar.

We will continue to be busy with Money & Market. I’d love to preview some of the upcoming content that I don’t want to miss. We’ll also tell you what to expect from Lululemon Athletica’s earnings and what to see in a post-COVID-19 job market report.

come money & market

Here Are Some Sneak Peaks Money & Market The Content You Can Expect Last Week.

Monday: It’s a holiday for the financial markets and our team. But we’re trying something new. You will find an email in your inbox with details about the first competition. It’s your chance to win money and market equipment, and I’ll give you one tip: improve your stock valuation skills in the green zone here..

Tuesday: Green Zone Fortune co-editor Charles Sizemore is considering your retirement. Big news fell from Social Security last week. Charles has some tips on how to make sure your nest egg is in good shape going forward.

Thursday: Research analyst Matt Clark enjoys talking about our cannabis stock Youtube channel.. In a live chat on Thursday you will have the opportunity to ask questions about the cannabis industry. Get ready for your question and join Matt at 4:00 p.m. EST.

Deeper Insight: Lululemon Income

Beyond the high-earnings season, there are still a few notable companies to report quarterly figures for the next few days.

Lululemon Athletica Inc. (Nasdaq: Lulu). I will report the income on Wednesday.

A popular sports and casual wear company has become a pandemic darling as people work and exercise at home. LULU’s share price has risen 135% from its March 2020 lows.

And that success resulted in a number of revenue and sales blows.

Earnings per share (EPS) are reported to have increased $ 1.16, 27.5% higher than analysts expected, in Lululemon’s latest earnings call for the quarter ending April 2021.

Looking back, Lululemon has seen sales jump nine of the last ten quarters, the only problem being the onset of the COVID-19 pandemic in spring 2020.

Lululemon’s sales fell sharply at the start of the pandemic, but sales steadily recovered through the second half of 2020, almost doubling from the second quarter to the fourth quarter of 2020.

Lululemon reported that online sales accounted for 44% of sales in the first quarter of 2021, compared to 54% in the year-ago quarter. As a result, total store sales increased 55% compared to the previous year. -The mortar site has reopened.

slim: Analysts are forecasting EPS growth of $ 1.18 for LULU in the second quarter and revenue of $ 1.33 billion in 2021, which I believe will once again beat that number.

Companies that focused on selling online during the pandemic flourished. I’ve seen it at traditional retailers like Walmart and Target, but it’s the same at small businesses like Lululemon.

With consumers wrestling with the COVID-19 delta variant, it will be interesting to see how that trend unfolds as the holiday season approaches.

Data dump: USJOLT jobs

A healthy labor market equals a healthy economy.

The Job and Sales Survey (JOLT) provides insights into the state of the labor market and the Bureau of Labor Statistics will publish the results of the July survey on Thursday.

JOLT uses three criteria to define a job. There is a position, the position can be opened within 30 days and the company is actively hiring the position. The JOLT survey also reports on employment and turnover (layoffs, retirement, etc.) so it provides a relatively broad view of the labor market.

There were 10.1 million jobs end of June, Series up.

There are enough jobs

Employment also rose 4.6% to 6.7 million in June, increasing retail, state and local government, education, and consumer durables manufacturing. The separation also increased slightly to 5.6 million.

Overall, there was a net increase of 6.9 million employees in the 12 months to June.

slim: Economists forecast 9.28 million jobs in July. That’s well below the June numbers, but I think it’s easy to beat.

Over the next few months, this data should reflect the effects of the COVID-19 delta variant. The federal unemployment benefit set by the CARE law in 2020 will also expire on Monday.

Sales report

Finally, Money & Markets Week Ahead, let’s take a look at some of the keys here revenue Report this week:

Monday

Uxin Ltd. (Nasdaq: UXIN).

Agraflora Organics International Inc. (OTC: AGFAF).

Tuesday

Caseys General Stores Inc. (Nasdaq: CASY).

Dada Nexus Ltd. (Nasdaq: chest).

Wednesday

Lululemon Athletica Inc. (Nasdaq: Lulu).

GameStop Corp. (NYSE: GME).

RH (NYSE: NS).

Thursday

Sun Hung Kai Properties Co., Ltd. (OTC: SUHJY).

Affirm Holdings Inc. (Nasdaq: AFRM).

National Beverage Corp. (Nasdaq: FIZZ).

Academy Sports Outdoors Inc. (Nasdaq: Yes sir).

Friday

Ellaktor SA ADR (OTC: ELLKY).

Number one,

Chadstone

Assistant Managing Editor, Money & Market

What’s Up for Money & Markets + Lululemon Yield Forecast Source link What’s Up for Money & Markets + Lululemon Yield Forecast

American Eagle (AEO) Q2 2021 earnings

A shopper walks past an American Eagle store in the mall.

Tim Boyle | Getty Images News | Getty Images

american eagle The stock slumped Thursday after the company reported sales below analyst estimates in the second quarter as its e-commerce business slowed year over year.

Management also noted that back-to-school purchases were made later in the season, shifting from the final quarter to August. Abercrombie & Fitch A similar trend has recently been noted as teenagers and their parents hold back from buying all-new wardrobes before summer is over.

Its stocks lost around 9% in early news trading.

However, American Eagle’s profit was above expectations. The company, which also owns lingerie brand Aerie, said reduced promotions and controlled costs increased its profitability over the summer months.

“We have learned that you can still move a lot of goods without a discount,” said CEO Jay Schottenstein in a telephone interview. “Our businesses are very productive.”

Here’s how American Eagle performed for the quarter ended July 31st compared to Wall Street’s expectations using refinitive estimates:

  • Earnings per share: 60 cents adjusted vs. 55 cents expected
  • Revenue: $ 1.19 billion versus an expected $ 1.23 billion

American Eagle’s net income rose to $ 121.5 million, or 58 cents per share, from a loss of $ 13.8 million, or 8 cents per share, last year. Without one-off effects, it made 60 cents per share, up from the 55 cents analysts had been looking for.

Revenue increased 35% to $ 1.19 billion from $ 883.5 million in the same period last year. That fell short of the analyst forecast of $ 1.23 billion.

Aerie sales were $ 336 million, up 34% year-over-year. American Eagle’s sales increased 35% to $ 846 million over the same period.

Digital sales were 5% lower than in 2020. Last summer, due to the Covid pandemic, many consumers chose to shop online rather than visit stores. According to American Eagle, digital sales increased 66% on a two-year basis.

Other retailers including gap and Macys, have seen their online sales growth slow in recent months as consumers return to stores. But many are still reporting ecommerce gains above pre-pandemic levels.

American Eagle has not given an outlook for the coming quarter or the year. It was said, however, that it is so remains on track to meet the three-year targets so far. Until fiscal year 2023, the retailer expects sales of $ 5.5 billion and Aerie to grow to a mark of $ 2 billion.

American Eagle announced that it will hold another Investor Day event in January to discuss the post-holiday prospects in more depth.

BMO Capital Markets analyst Simeon Siegel said investors are focusing on future trends as companies face pent-up demand and supply chain backlogs.

American Eagle is in the middle of the back-to-school season, and production and shipping restrictions have been a cloud over the industry. Rival Abercrombie & Fitch reported late last month Quarterly revenue that fell short of analysts’ expectationsas there were shipping delays resulting in inventory backlogs and barren shelves in some stores.

Schottenstein said American Eagle has invested in its supply chain for years to be more agile and less dependent on factories overseas. The company has also reserved additional air freight to ensure it can ship supplies to warehouse stores over the holidays, he told analysts during a conference call on the results.

“We know there are problems out there, but we believe our investments will differentiate us in the coming second half of the year,” said the CEO.

At the close of trading on Wednesday, American Eagle’s shares were up nearly 50% year-to-date. The company’s market capitalization is $ 5.04 billion.

Nordstrom (JWN) Q2 2021 earnings

A buyer leaves a Nordstrom store in Chicago, Illinois on May 26, 2021.

Scott Olson | Getty Images

Nordstrom Shares fell Tuesday after the department store chain reported that sales in the second quarter of the fiscal year were below pre-pandemic levels.

Compared to the previous year, sales more than doubled as buyers used Nordstrom’s anniversary sale as a reason to go back to the mall and buy new shoes, clothes and sportswear. However, on a two-year basis, sales were down 6%.

Nordstrom was more bullish for the rest of the year and raised its outlook on competitors Macys and Kohlswho did the same for the past few days.

But its stocks lost more than 6% in expanded trading.

Here’s how Nordstrom performed for the quarter ended July 31st compared to Wall Street’s expectations, based on an analyst survey by Refinitiv:

  • Earnings per share: 49 cents vs. 27 cents expected
  • Revenue: $ 3.66 billion versus $ 3.36 billion expected

Nordstrom reported net income of $ 80 million, or 49 cents per share, compared to a loss of $ 255 million, or $ 1.62 per share, last year. Analysts were expecting a profit of 27 cents per share.

Revenue rose to $ 3.66 billion from $ 1.86 billion a year ago, beating estimates of $ 3.36 billion.

Total sales of Nordstrom’s anniversary sales event increased by 1% compared to 2019, the company said. Last year’s event was postponed to the third quarter due to the Covid pandemic.

“A compelling product range, combined with new and differentiated services and experiences, helped to strengthen customer loyalty and improve the financial results during our anniversary sale,” said President Pete Nordstrom in a press release.

Sales of the Nordstrom department store brand of the same name increased by 127% compared to the previous year, but declined by 5% on a two-year basis.

At Nordstrom Rack, an off-price division that competes with TJ Maxx and Macy’s Backstage, sales were up 61% from 2020 but 8% up from 2019.

The company said its online sales were up 30% year over year, representing 40% of Nordstrom’s total business.

Nordstrom now expects annual sales to grow more than 35% after previously expected growth of 25%. According to Refinitiv, analysts were looking for a 30% increase.

As of Tuesday’s trading session, Nordstrom’s shares were up 21% year-to-date, bringing the retailer’s market cap to $ 6 billion.

The full press release on Nordstrom’s results can be found here.

Walmart (WMT) earnings Q2 2022

A mask buyer makes a purchase at a Walmart store in Hallandale Beach, Florida on May 18, 2021.

Joe Raedle | Getty Images

WalmartSecond-quarter earnings exceeded Wall Street expectations on Tuesday as the retail giant gained ground in its grocery store and had a strong start to back-to-school sales.

The discounter also tightened its forecast for the year and now expects earnings per share between $ 6.20 and $ 6.35. It said it expects Walmart US sales in the same store to grow 5 to 6%, excluding fuel.

CFO Brett Biggs said in an interview with CNBC that when customers “came out of hibernation” flocked to stores to purchase items like luggage, party supplies and clothing. Also, he said, families have bought backpacks and classroom items.

CEO Doug McMillon said in a press release that the company had gained more market share in the food sector, one of its core businesses. He said it made strides in new areas too, adding thousands of online sellers to its third-party marketplace and nearly doubling ad sales in Walmart US in the quarter year over year.

According to Refinitiv’s consensus estimates, for the second fiscal quarter ended July 31, the company reported the following:

  • Earnings per share: adjusted $ 1.78 versus an expected $ 1.57
  • Revenue: $ 141.05 billion versus an expected $ 137.17 billion

Walmart reported net income from $ 6.48 billion, or $ 2.27 per share last year to $ 4.28 billion, or $ 1.52 per share. With no items, the company made $ 1.78 per share. According to Refinitiv, analysts expected Walmart to make $ 1.57 per share.

Total revenue increased 2.4% to $ 141.05 billion from $ 137.74 billion a year ago, surpassing it Wall Street expects $ 137.17 billion.

According to a StreetAccount poll, Walmart’s US revenue rose 5.2% in the US, higher than analysts’ forecast 3.3% increase. Over the past two years, the retailer said its sales in the same store rose 14.5%. In the same period, US e-commerce sales doubled – with a 6% growth in digital compared to last year.

Walmart subsidiary Sam’s Club sales in the same store rose 7.7% excluding fuel – more than the 3.7% growth forecast by analysts.

Customers also shopped differently in the quarter than they did a year ago as they frequented the Walmart store and website. Transactions in Walmart US were up 6.1% and average tickets were down nearly 1%.

This story evolves and is updated.

Purchase Disney, Coinbase forward of earnings this week, merchants say

Coinbases This week’s earnings report could be crucial to the stock, says a trader.

Although the shares of the cryptocurrency trading platform have fallen from their market price, “that negativity has been washed away,” Blue Line Capital founder and president Bill Baruch told CNBC “Trading nation” on Friday.

“I think their user growth will exceed the verified users of 60 million, and I think that will be some kind of benchmark that they will continue to feed on. They are also paid for with the trading activity. I think that’s it will pick up “even if like large crypto assets Bitcoin or ether Fight, he said.

That bodes well for Coinbase’s second-quarter report scheduled for Tuesday afternoon, said Baruch, who owns Bitcoin and Ethereum.

“There’s good trendline support it’s coming off and it’s broken out of a resistance wedge,” he said. “I think this thing can go up to 290-300 and I think the revenue should be positive and the forecast should be good.”

Coinbase shares ended Friday at $ 258.26, up about 1%. They rose another 3.8% to $ 268 in Monday’s pre-trading session. A rise to $ 290 or $ 300 would be a 12-16% increase from Friday’s closing price.

Disney’s The earnings report for the third quarter should also be noted, said Gina Sanchez, founder and CEO of Chantico Global, in the same interview.

“This is a company that has made an all-time home run with Disney +, especially during the pandemic, but which has been completely overshadowed by the $ 4.5 billion loss in revenue it suffered from the closure of the parks and their studios” , said Sanchez, also chief market strategist at Lido Advisors.

“But look … this is coming back,” said Sanchez. “They’ll get that park revenue back, and in the meantime, Disney + is a much more lucrative way for Disney to bring new content to market so they can keep more of it.”

Disney is due to report on Thursday afternoon. The stock closed less than half of 1% higher on Friday, but lost some of its momentum in pre-market trading on Monday.

Disclosure: Baruch owns Bitcoin and Ethereum. Lido Advisors owns shares of Disney.

Disclaimer of liability

Corporations rising extra cautious about delta variant, earnings calls present

A sign describes entry restrictions at a JLL office in the Aon Center in Chicago, Illinois, USA on Thursday, June 24, 2020.

Christopher Dilts | Bloomberg | Getty Images

When the reporting season started in earnest in mid-July, few companies asked questions or mentioned the Covid Delta variant.

That changed as new Covid-19 cases increased and the Centers for Disease Control and Prevention changed their stance on masks for vaccinated people, according to a CNBC analysis of transcripts of calls.

From July 13th through Thursday, 142 companies have been in the S&P 500 of the 410 who reported their quarterly profits mentioned the delta variant by name or answered a question about it in their profit talks. Only 15% of these mentions came before July 27th – the same day the CDC said fully vaccinated people should wear a mask indoors in areas with high transmission rates. New Covid cases also rose steadily as the highly contagious Delta variant became the dominant strain of the virus in the USA

The US reports a seven-day average of more than 109,000 new cases as of August 5, nearly 28% more than a week ago, according to Johns Hopkins University.

For the most part, executives said their companies did not see any significant business impact with the rise in new cases.

Becton, Dickinson & Co., a medical technology company, was one of the few to report a change in consumer behavior and told analysts that fewer elective surgeries have been performed in some US states in recent weeks because of the variant. For the week ending August 1, 72% of beds in intensive care units in the United States were occupied, according to Johns Hopkins data.

But some companies with a more global footprint say it’s a different story outside of the US.

“An uneven recovery from the pandemic and an ascending delta variant in many countries around the world have shown us once again that the road to recovery will be a winding one.” Apple CEO Tim Cook said when the company called on July 27th.

Postings, the parent company of Kayak and OpenTable, said bookings were down 22% in July compared to 2019, a bigger drop than the 13% drop in June.

“In Europe, we noticed reductions in overnight stays in several of our most important countries, including Germany, France and Italy, in July,” said Booking CFO David Goulden on Wednesday at the company’s conference call.

Other companies reported supply chain disruptions as Covid cases accelerated in Asia and Europe. For example, rail operators Norfolk South said the Delta variant will affect its suppliers in Southeast Asia.

“We have a couple of factories that source parts from Southeast Asia and due to manufacturing issues there, they had to bring forward scheduled production shutdowns later this year,” said chief marketing officer Alan Shaw on the company’s conference call on July 28th. “And that has now had an impact on our production and our volumes.”

The Delta variant has also led some companies to issue more conservative projections, although most companies said they don’t expect any further lockdowns in the US.

Abiomed, a medical device maker, told analysts on its conference call Thursday that the lower end of its full-year revenue forecast sees “some persistent unevenness” from the variant, even though the company raised its outlook.

Beyond meatwhich is not part of the S&P 500 said that Restaurant operators are more conservative in their food orders due to the uncertainty caused by the delta variant and work-related challenges.

“For us, the main feature of the third quarter, and our forecast is simply a lack of visibility,” said CEO Ethan Brown on Thursday.

Norwegian Cruise Line (NCLH) Q2 2021 earnings beat

The cruise ship Norwegian Dawn will dock in the French Mediterranean port of Marseille on July 27, 2021.

Gerard Bottino | SOPA pictures | LightRakete | Getty Images

Norwegian Cruise Line announced mixed second quarter results on Friday as future bookings ahead of the first US cruise remained strong since last year.

On Saturday, Norwegian Encore sails from Seattle to Alaska. The cruise operator plans to bring 40% of its fleet capacity into operation by the end of the third quarter and 75% by the end of the year. The company plans to resume full capacity by April 1st.

It will require that all passengers of all three brands be vaccinated.

“We are ready and eager to welcome guests back on board and continue to see an incredible strength in our booking trends for future cruises,” said President and CEO Frank Del Rio.

The company’s shares rose more than 2% in pre-trading hours.

The company performed in the second quarter ended June 30, compared to the expectations of the analysts surveyed by Refinitiv:

  • Loss per share: $ 1.93 adjusted vs. $ 1.97 expected
  • revenue: $ 4.37 million versus the expected $ 10 million

For the second quarter, the company recorded a net loss of $ 717.8 million, or $ 1.94 per share, compared to a loss of $ 715.2 million, or $ 2.99 per share, last year.

With no items, the company lost $ 1.93 per share, which was less than the loss of $ 1.97 per share expected by analysts surveyed by Refinitiv.

Revenue fell to $ 4.37 million, well below the $ 10 million analysts had expected.

However, the company said bookings for 2022, taking into account future cruise credits, are well above the 2019 records.

As of the end of the second quarter, the cruise operator had pre-sale tickets valued at $ 1.4 billion, including $ 800 million from future cruise credits.

As it prepared to go back online, the company had average monthly cash usage during the quarter of $ 200 million, which is higher than last quarter’s value and previous forecast of $ 190 million. The company expects a monthly cash burn rate of $ 285 million for the third quarter, excluding cash inflow from new and existing bookings.

The company expects to report a net loss in the third quarter and beyond until it can resume regular travel.

“As a result of the COVID-19 pandemic, the company is unable to estimate with any certainty the impact it will have on its business, financial condition, or short or long-term financial or operating results,” Norwegian Cruise Line said in a press release.

Norwegian Cruise Line’s shares are down nearly 5% this year as the cruise industry remained closed due to Covid-19.

There were several at the height of the pandemic Sensational outbreaks on board ships This led the Centers for Disease Control and Prevention to impose harsh restrictions on cruise lines.

Cruise stocks rose earlier this year, as vaccinations raised hope for an industry recovery, but the proliferation of the highly contagious Delta variant in recent weeks has reversed the trend in the stock.

Last month, Norwegian Cruise Line filed a lawsuit against the Florida surgeon general End the law of the state that prohibits companies from requiring customers to provide proof of vaccination. In the court filing, the company said it wants its guests to show proof of vaccination on all cruises.

The company’s first scheduled departure from Florida is August 15, which Norwegian says will be a 100% vaccinated cruise.

“The company has been unable to work with the state of Florida to find a mutually acceptable solution that would allow them to request proof of guests’ vaccination status prior to boarding Florida cruises,” Norwegian said in a press release. “[At Friday’s hearing,] the company hopes to have additional clarity shortly on its path to resume sailing from Florida. “

Yum Manufacturers YUM Q2 2021 earnings beat

Signs are outside of a Yum! Brands Inc. Taco Bell and Kentucky Fried Chicken (KFC) restaurant in Louisville, Kentucky, the United States, on Thursday, January 30, 2020.

Luke Sharrett | Bloomberg | Getty Images

Yum brands reported quarterly earnings and earnings on Thursday that exceeded analyst projections as sales of the big three brands surpassed pre-pandemic levels and new restaurants opened at record pace.

Yum’s shares closed at $ 130.31, up 6.28% after hitting a 52-week high of $ 130.49.

The company performed in the second quarter ended June 30, compared to the expectations of the analysts surveyed by Refinitiv:

  • Earnings per share: $ 1.16 vs. 96 cents expected
  • revenue: $ 1.6 billion versus an expected $ 1.48 billion

For the quarter, the company reported net income of $ 391 million, or $ 1.29 per share, compared to $ 206 million, or 67 cents per share, a year earlier.

Excluding refranchising profits and other items, Yum earned $ 1.16 per share, beating 96 cents per share expected by analysts surveyed by Refinitiv.

The company’s revenue rose 34% year over year to $ 1.6 billion, exceeding expected revenue of $ 1.48 billion. Global sales in the same store rose 23% for the quarter. Yum’s sales in the same store increased 4% year over year, despite 1% of restaurants remaining closed the pandemic at the end of the quarter said CEO David Gibbs.

Yum said it opened 603 new locations during the quarter and plans to accelerate the pace of its expansion by restoring its long-term growth goals. Yum plans to grow the number of restaurants it operates by 4% to 5% over the long term, from its previous forecast of 4% growth.

The company made $ 5 billion in digital sales, a 35% year-over-year increase, Gibbs said. For the first time in the past 12 months, it made more than $ 20 billion in digital sales.

Taco Bell US launched a rewards program last year that helped grow the brand’s digital sales.

“We’re seeing a significant increase in frequency and spending on visits, resulting in an overall 35% increase in total spend for active customers in the Taco Bell Rewards Program compared to their behavior in front of the loyalty program,” said Gibbs.

Earlier this year, the company launched an app and website for KFC, replacing a third-party website that has increased its digital sales.

“Our 2021 digital sales are on track to soon surpass last year’s digital sales,” said Gibbs.

Chicken Sandwich Wars

KFC is also seeing demand for its new chicken sandwich, which it launched in late February to compete in an industry-wide battle. In April, KFC said it sold more than double its new chicken sandwich compared to previous versions. The momentum has continued.

“Our chicken sandwich has performed exceptionally well and provides a solid platform for us to drive additional layers of sales in the future,” Gibbs said on the company’s conference call.

KFC sales in the same store increased 30% for the quarter, led by US growth. On a two-year basis, sales in the same store increased 2%. KFC’s international same-store sales declined 1% over the biennium as 2% of KFC stores were temporarily closed at the end of the second quarter. U.S. sales in the same store rose 19% on a biennial basis as pandemic restrictions eased and guests returned.

KFC opened 428 new locations in 62 countries in the second quarter.

Delivery picks up Pizza Hut sales

Pizza Hut sales in the same store rose 10% for the quarter. The brand’s sales in the same store increased 1% on a two-year basis. Only 2% of the branches were temporarily closed in the quarter. US sales in the same store increased 9% on a two-year basis, while international sales in the same store decreased 6%.

Delivery continues to be the brand’s main growth driver, Gibbs said.

Taco Bell sales in the same store rose 21% for the quarter. On a two-year basis, sales in the same store increased 12%.

In the tight labor market, Taco Bell has sweetened its employee benefits with paid time off, free family meals and increased employee development activities, according to CFO Chris Turner.

The company has moderately increased its product prices for its US brands to offset higher raw material costs and wages. Gibbs said the company is more under inflationary pressures in the US than in its international markets.

“We’re seeing inflationary pressures, especially in the US,” Gibbs said. “We have a larger buying scale than most players in the industry … which leverages purchasing across the brand and gives our franchisees advantageous cost and negotiation skills from a sourcing standpoint.”

Read the full press release from Yum Brands here.