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.

Lowe’s (LOW) earnings Q1 2021 beat estimates

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

David Paul Morris | Bloomberg | Getty Images

Lowes On Wednesday it announced that fiscal first quarter sales were up 24%, exceeding Wall Street expectations as consumers continued to invest in their homes and sales to professionals such as contractors picked up again.

The hardware store said the momentum continued into May. Based on these trends, the company has exceeded its previous revenue forecast of $ 86 billion for this fiscal year.

Despite the strong quarter, stocks in premarket trading fell 2.4% as investors feared real estate market challenges such as labor shortages and rising lumber prices.

The company reported for the first quarter ended April 30, versus Wall Street expectations based on an analyst survey conducted by Refinitiv:

  • Earnings per share: $ 3.21 versus $ 2.62 expected
  • Revenue: $ 24.42 billion versus $ 23.86 billion expected

Lowe reported net income of $ 2.33 billion or $ 3.21 per share versus $ 1.34 billion or $ 1.76 per share. one year ago. The results exceeded the analysts surveyed by Refinitiv expected $ 2.62 per share.

Net sales rose from $ 19.68 billion last year to $ 24.42 billion, exceeding analysts’ expectations of $ 23.86 billion.

Lowe’s sales in the same store rose 25.9% for the quarter.

At the rival Home DepotSales rose nearly 33% in the first quarter, but the retailer declined to provide a forecast. Shares fell around 1% on the Wednesday before the IPO.

Both do-it-yourselfers have benefited from the booming real estate market, but are also facing challenges. The real estate market remains hot, but a labor crisis, rising lumber prices and land shortages are making it difficult for construction to keep up. House construction of single-family houses fell more than 13% in April Compared to March, the US census reported Tuesday. This is the sharpest drop since April 2020, when the pandemic brought the economy to a standstill.

Also in the financial year Lowe’s competes against large numbers. It opened stores as a major retailer during last year’s lockdowns. Because customers stayed at home, they took on home improvement projects, replaced kitchen appliances, and built up their lawns or backyards. Some investors are skeptical that people will keep eating, going on vacation, and spending their time in other ways.

As of Tuesday’s close of trading, Lowe’s shares are up about 20% so far this year. The stock closed at $ 192.75 on Tuesday, bringing the market value to $ 138.24 billion.

Read the full press release here.

Accel Leisure’s 4Q Revenues Plunge 39%, Miss Estimates

Bloomberg

Biden Eyes first big tax hike since 1993 in next economic plan

(Bloomberg) – President Joe Biden is planning the first major federal tax hike since 1993 to fund the long-term economic program designed as a follow-up to his Pandemic Control Act, according to people familiar with The Covid-19 Business Stimulus Act $ 1.9 trillion, the next initiative, which is likely to be even bigger, will not rely solely on government debt as a source of funding. While it became increasingly clear that tax hikes will be a component – Treasury Secretary Janet Yellen said at least part of the next bill will have to be paid and pointed to higher rates – key advisors are now preparing for a package of measures that will could include an increase in both corporate and individual tax rates for high earners. With every tax break and every loan that has its own lobby constituency, tinkering with tax rates is associated with political risks. This explains why the tax increases in the 1993 revision of Bill Clinton stand out from the modest changes that have been made since then. For the Biden government, the planned changes not only offer the opportunity to fund important initiatives such as infrastructure, climate and expanded aid for poorer Americans. But also to address what Democrats argue is inequalities in the tax system itself. The plan will test both Biden’s ability to woo Republicans and Democrats’ ability to remain unified. “His whole outlook has always been that Americans believe tax policies must be fair, and he has looked at all of his policy options through that lens,” said Sarah Bianchi, director of US policy at Evercore ISI and former Biden economic assistant. “That is why the focus is on combating inequalities between work and wealth.” While the White House has opposed a direct wealth tax as suggested by progressive Democratic Senator Elizabeth Warren, current government thinking is targeting the rich. The White House is expected to see four people familiar with the discussions propose a series of tax increases, largely in line with Biden’s 2020 campaign proposals. The tax hikes, included in a broader infrastructure and jobs package, are likely to repeal portions of President Donald Trump’s tax bill for 2017, benefiting businesses and high net worth individuals, and making further changes to make tax law more progressive, according to the one with the Plan trusted people. The following proposals are among those currently planned or under consideration, according to respondents who did not want to because the discussions are private: Increase the corporate tax rate from 21% to 28% pass-through companies such as limited liability companies or Partnerships Increase Income Tax Rate for Individuals With Income Greater Than US $ 400,000 Widening Estate Tax Scope Increased Capital Gains Tax Rate for Individuals With Annual Earnings Of US $ 1M or More. (Biden on the campaign suggested applying higher income tax rates) White House economist Heather Boushey stressed that Biden has no plans to increase taxes on those earning less than $ 400,000 a year. But for “people at the top who have benefited from this economy and have not been hit so hard, there is plenty of room to ponder what types of income we can generate,” she said in a Bloomberg television interview Monday. An independent analysis of the Biden campaign’s tax plan by the Tax Policy Center estimated it would raise $ 2.1 trillion over a decade, though the administration’s plan is likely to be smaller. Bianchi wrote earlier this month that Congress Democrats could approve $ 500 billion. The full program has yet to be presented, with analysts estimating $ 2 to 4 trillion. A date has not yet been set for an announcement, although the White House said the plan will follow after the Covid-19 relief bill is signed. An open question for Democrats is what parts of the package need to be funded while debating whether there is infrastructure in place and this ultimately pays off – especially given the ongoing low cost of borrowing that remains historically low. Efforts to make the expanded child tax credit in the Pandemic Aid bill permanent – something estimated to price more than $ 1 trillion over a decade – could be harder to sell if classified as fully debt-financed. What Bloomberg’s Economists Are Saying … “The next big legislative initiative, infrastructure investments, could bring lasting economic gains that not only support higher wages but also encourage the diffusion of those gains across demographics and political beliefs.” – Andrew Husby and Eliza Winger, US economists For the full report click here. Democrats need at least 10 Republicans to support the bill and move it under regular Senate rules. But GOP members are signaling they’re ready to fight: “We’re going to have a big, robust discussion on the appropriateness of a big tax hike,” Senate Minority Chairman Mitch McConnell said last month, predicting the Democrats Pursue a reconciliation bill that waives the GOP Kevin Brady, Republican chief on the House Ways & Means Committee, said, “There seems to be a real drive to tax investments in capital gains at marginal income rates.” and called it a “terrible economic mistake”. While about 18% of the George W. Bush administration’s tax cuts were allowed to expire in a 2013 agreement and other laws saw some tax hikes, 1993 marks the last major string of hikes, experts say. This bill was passed by two votes in the House of Representatives, calling on the Vice President to break a tie in the Senate. “I don’t think it’s an understatement to say that the current partisan environment is more severe than it was in 1993,” said Ken Kies, executive director of the Federal Policy Group, former chief of staff of the Joint Tax Committee of Congress. “So you can draw your own conclusions” about the prospect of a deal this year, he said. Still, there could be some tax initiatives Republicans could leave behind. One of them is the switch from a gasoline tax to a fee for kilometers driven to finance motorway projects. Read More: Steam Another Road Tax For Funding Infrastructure Gains Is More Money To Enforce The Internal Revenue Service – A Way To Grow Revenue Without Raising Interest Rates. It is estimated that the agency brings in an additional $ 3 to $ 5 for every additional $ 1 spent on IRS audits. Democrats are also trying to overhaul tax laws, which they believe are not doing enough to discourage US companies from moving jobs and profits offshore – another way to increase revenue, an aide said. Republicans could potentially support incentives, although it is unclear whether they would support penalties. White House officials, including National Economic Council Assistant Director David Kamin, who wrote a paper on “Taxing the Rich” in 2019, are in the process of drafting the Biden tax plans. If the date is passed, tax measures are likely to take effect in 2022 – although some lawmakers and Biden supporters outside the administration have advocated holding back while unemployment remains high due to the pandemic’s own ideas for tax reforms. Senate Finance Committee Chairman Ron Wyden wants to consolidate energy tax breaks and require investors to regularly pay taxes on their investments, including stocks and bonds that make unrealized gains. “A nurse pays taxes on every single paycheck. A billionaire in an affluent suburb, on the other hand, can postpone paying taxes month after month so that paying taxes is all but optional, ”Wyden told Bloomberg in an interview. “I don’t think that’s right.” Warren has levied a wealth tax while House Financial Services Committee chair Maxine Waters said she would like to consider a financial transactions tax. Democratic strategists see the next package as the last chance to reshape the US economy on a grand scale before lawmakers turn to the 2022 mid-term campaign: “Typically, the party in power gets a shot or two to pass major legislative packages,” said Chuck Marr, senior director for Federal Tax Policy at the Left Center for Budget and Policy Priorities. “This is the next shot.” (Updates with White House economists in the first paragraph after the bullet section.) For more articles like this, visit bloomberg.com. Sign up now to stay up to date with the most trusted business news source. © 2021 Bloomberg LP

CVS Well being (CVS) earnings This autumn 2020 beat estimates

People walk past a CVS drug store in Manhattan, New York.

Shannon Stapleton | Reuters

CVS healthFourth-quarter earnings exceeded Wall Street expectations on Tuesday as prescription volume spiked sales and the drugstore chain attracted new customers with Covid-19 testing and vaccines.

The company’s shares fell more than 4% early Tuesday.

The company reported for the fourth fiscal quarter ended December 31, versus analyst expectations, based on an analyst survey conducted by Refinitiv:

  • Earnings per share: $ 1.30 adjusted versus $ 1.24 expected
  • Revenue: $ 69.55 billion versus $ 68.75 billion expected

The drugstore chain posted net income of $ 975 million, or 75 cents per share, for the fourth quarter, compared with $ 1.74 billion or $ 1.33 per share a year earlier.

Excluding items, the company earned $ 1.30 per share, beating the analysts polled by Refinitiv, which was forecasting $ 1.24 per share.

Revenue rose from $ 66.89 billion a year ago to $ 69.55 billion. That’s higher than analysts’ expectations of $ 68.75 billion.

For CVS, the pandemic has brought advantages and disadvantages. On the one hand, the global health crisis has resulted in some people skipping trips to the store and the doctor’s office. This has reduced sales in the store and has resulted in fewer new recipes. On the other hand, fewer visits to the doctor have resulted in lower costs for CVS ‘own health insurance, Aetna it was acquired in 2018. The pandemic has also given the drugstore chain an opportunity to showcase its health services like telemedicine and MinuteClinic, and to open up new business opportunities like drive-thru testing.

Sales in the same store increased by 5.3% in the three-month period compared to the same period last year. In the pharmacy division, they rose 7.5% as prescription volume increased but the front end fell 1.8% as customers had fewer visits and did not have to buy as much flu and cold medication during the pandemic.

CVS warned that the first quarter of the fiscal year will be the lowest earnings quarter of the year due to the weaker flu season and investments in the Covid vaccination program. The health care business will generate higher profits in the first half of the year, but these will taper and drop to their lowest level in the fourth quarter.

CVS predicts earnings per share for 2021 will be between $ 6.06 and $ 6.22, but after adjustments, between $ 7.39 and $ 7.55 per share. Cash flow from operating activities for the full year is projected to be between $ 12 billion and $ 12.5 billion.

Brian Tanquilut, health services research analyst at Jefferies, said the market reaction on Tuesday may reflect disappointment with the company’s outlook for the year. He expects the CVS prognosis to be conservative. He estimates the company has more than $ 700 million chance of delivering Covid vaccines.

Expansion of Covid vaccines

CVS is gradually take on a bigger role with the vaccinesbecause it gets more offer. Last week the Federal government sent cans directly to pharmacy stores – including CVS locations in 11 states.

Speaking to investors and analysts on Tuesday, CVS CEO Karen Lynch said that around 8 million consumers first came to CVS because of Covid testing. She said it expected a similar experience with vaccines.

“We will take this opportunity to create a health experience that shows the value we bring,” she said. “It will create the opportunity to expand our customer base while deepening relationships with current customers.”

She described the federal program with CVS and other pharmacies as “the linchpin of the Biden government’s plan to vaccinate 300 million Americans by the end of the summer”. She said CVS has the capacity to deliver 20 to 25 million doses per month, depending on the offer.

CVS said it ran around 15 million tests across the country. In addition, more than 3 million Covid vaccines have been administered in over 40,000 long-term care facilities.

The drugstore chain and its competitor Walgreens, signed a contract with the federal government in October to give employees and residents of nursing homes and assisted living facilities the opportunity. It started vaccinations in December and plans to deliver both doses in long-term care facilities in mid-March.

Combination of its assets

As the largest pharmacy chain in the country and a major insurance provider, CVS has pooled assets to increase sales and reduce costs. It has turned more than 650 locations into HealthHubs, where people can treat their diabetes, meet with a behavioral health therapist, or even take a yoga class. Some Aetna insurance plans encourage members to go to MinuteClinics in lieu of other health care providers by not requiring co-payment for the visits.

Lynch, the company’s new CEO, has a strong insurance background. Prior to joining the role this month, she was the head of CVS’s Aetna business. She worked for health insurance Cigna and health company Magellan Health Services before joining CVS.

Next year, the company will again participate in the public exchange created by the Affordable Care Act, which will allow people to buy their own health insurance. She said it will be CVS Health-Aetna’s first branded product. She said the exchange has stabilized and has become more attractive as a profit maker.

According to Lynch, CVS is accelerating investments in a broader range of services beyond just filling out prescriptions. She pointed out a program that brings kidney dialysis services home to reduce hospital admissions and an oncology program that matches people with clinical trials.

At the close of trading on Friday, CVS shares were up less than 1% last year. The company’s stock, valued at $ 97.13 billion, hit a 52-week high of $ 77.23 in mid-January. It closed at $ 74.21 on Friday.

Read the full press release here.

Morgan Stanley (MS) This fall 2020 earnings beat estimates

Morgan Stanley On Wednesday, fourth quarter earnings and sales 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 for robust trade and investment banking results from competitors Goldman Sachs and JPMorgan Chase helped increase winning strokes 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. This business is supported by the bank $ 13 billion The acquisition of E-Trade announced a year ago and 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 on the company’s strategic objectives, highlighting the case that its business is 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 that the return on tangible equity will be 17% or more, rather than the 15% to 17% range per year earlier.

“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 exceeded analysts’ expectations for sales and earnings, aided by trading, while Citigroup, Wells Fargoand Bank of America disappointed revenue as credit margins tightened.

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.

Goldman Sachs (GS) This autumn 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 On Tuesday, they exceeded analysts’ expectations for fourth quarter earnings and sales 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 trading and advisory results in the fourth quarter 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.

This story evolves. Please try again.

NRF stated vacation gross 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

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

“Faced with increasing transmission of the virusDue to 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.

The large retail group predicted so in November In 2020, Christmas sales would increase between 3.6% and 5.2% year-over-year, which amounts to $ 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 in October and October kept shops closed on Thanksgiving Day. she put more offers online and expanded contactless options like roadside pickup to reduce the number of shoppers cluttered 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.

So far, retailers’ holiday results seem to reflect trends related to pandemics. Lululemonthat has seen strong sales in the sport as people work from home forecasts fourth quarter earnings at the upper end of his expectations because of a strong holiday season. target said comparable sales online and in stores jumped 17% in November and December As vacation shoppers, they flocked to convenient, contactless options like roadside pickup. Still Nordstrom and Urban Outfitters reported disappointing vacation just as many shoppers stayed away from shopping malls.