- Scott Peters
- 29 Sep, 2022
- New York City
Nike Inc dropped more than 10% in the after-market trading after the maker of premium athletic shoemaker reported a sharp fall in earnings.
In the latest quarter ending in August, Nike said sales increased 4% to $12.7 billion from $12.2 billion a year ago.
Despite the weakness in its third largest market in China and supply chain challenges, sales rose.
Net income in the fiscal year first quarter plunged 22% to $1.5 billion from $1.87 billion a year ago.
Diluted earnings per share declined to 93 cents from $1.16 a year ago.
Gross Margin Declined
The decline in gross margin was primarily driven by the weakness in the North America segment.
Gross margin decreased 220 basis points to 44.3%, primarily driven by higher freight and logistics costs, lower margins in NIKE Direct business driven by higher markdowns, and higher dollar.
Inventories Jump 44%
Inventories surged 44% $9.7 billion, primarily driven by larger in-transit shipments to deal with supply chain issues and volatility.
Segment Breakdown
Sales in North America, its largest market, increased 13% to $5.5 billion from $4.9 billion a year ago.
Sales in Europe, Middle East and Africa increased 1% to $3.33 billion from $3.30 billion a year ago.
Greater China sales declined 16% to $1.7 billion, largely on the business interruptions linked to zero-Covid policy lockdowns.
Stock Buyback and Dividend
The company repurchased and retired 9 million shares for $1.0 billion in the quarter.
Nike used $0.7 billion to repurchase 6.5 million shares retired under the company
- Scott Peters
- 29 Sep, 2022
- New York City
Cintas Corporation declined 1.7% to $387.86 after the company reported revenue in the fiscal first quarter 2023 ending in August 14.2% to $2.17 billion from $1.90 billion a year ago.
Gross margin as a percentage of revenue was 47.5% for the first quarter compared to 47.6% a year ago.
Energy expenses, including gasoline, natural gas and electricity, increased 30 basis from a year ago.
Net income in the quarter increased to $351.7 million from $331.2 million and diluted earnings per share rose to $3.39 from $3.11 a year ago.
Excluding the fiscal 2022 first quarter gain and the related income tax impact, fiscal 2023 first quarter diluted earnings per share increased 12.3% to $3.39 from $3.02 a year ago.
Fiscal Year Outlook
The company also lifted its annual revenue expectations from a range of $8.47 billion to $8.58 billion to a range of $8.58 billion to $8.67 billion and diluted earnings per share from a range of $11.90 to $12.30 to a range of $12.30 to $12.65.
The revised earnings estimate suggest growth between 9.0% and 12.1%.
- Scott Peters
- 29 Sep, 2022
- New York City
Worthington Industries, Inc plunged 11.6% to $43.53 after the steel processor and maker of pressure vessels said it plans to separate two businesses in two publicly traded companies.
The company reported revenue in the fiscal 2022 first quarter ending in August rose 27% to $1.4 billion from $1.1 billion a year ago.
Gross margin fell $50 million from the prior year's quarter to $169.4 million, as improvements in both the Consumer Products and Building Products segments were more than offset by lower margin contributions from Steel Processing.
Margins in Steel Processing were negatively impacted by an estimated $48.6 million unfavorable swing related to inventory holding losses in the current quarter compared to inventory holding gains a year ago.
Net income in the quarter declined to $64.08 million from $132.4 million and diluted earnings per share fell to $1.30 from $2.55 a year ago.
Business Separation
The post-separation, Worthington will focus on consumer products, building products and sustainable energy solutions.
Steel processing business with extensive supply chain and pricing solutions focus on custom and wholesale markets with expanded product offerings in electrical steel laminations and laser welding solutions.
Acquisitions and Divestitures
Worthington acquired Level5 Tools, LLC, a provider of drywall tools and related accessories for a net cash purchase price of approximately $56.1 million, with a potential earnout of up to $25.0 million based on performance through 2024.
The transaction was completed on June 2, 2022.
The company sold its 50% interest in ArtiFlex to the unaffiliated joint venture member for approximately $42.1 million, after closing adjustments.
The sale transaction was completed on August 3, 2022.
The sale included real estate in Wooster, Ohio, owned by Worthington and leased to ArtiFlex.
As a result of the transaction, the company recorded a pre-tax loss of approximately $15.8 million in equity income during the quarter.
Outlook
The company did not provide a specific quarterly or annual earnings or revenue guidance.
- Brian Turner
- 29 Sep, 2022
- New York City
Initial weekly jobless claims rate dropped less-than-expected to 196,000 in the week ending September 24.
The fewer-than-expected claims offered yet another impetus to the Federal Reserve in continuing its campaign to lift by a large amount of 75 basis points.
Seasonally adjusted weekly initial jobless claims declined 16,000 to 193,000 in the week ending September 24, the Department of Labor said Thursday.
Unadjusted initial claims fell 12,642 to 156,060 led by significant declines in Michigan (5,674), New Jersey (1,521) and New York (1,266).
The 4-week moving average declined 8,750 to 207,000.
- Barry Adams
- 29 Sep, 2022
- New York City
Tech stocks led the decliners on Wall Street after the latest jobs report highlighted labor market strength.
The stronger-than-anticipated jobless report reinforced the strength in the labor market and provided one more signal to the Fed in continuing its campaign to lift rates.
Benchmark indexes opened sharply lower after the jobs report knocked the sentiment down.
Moreover, the sentiment in the tech sector weakened after Apple Inc was downgraded.
Jobless Claims Signal Strong Labor Market
Initial weekly jobless claims rate dropped less-than-expected to 196,000 in the week ending September 24.
The fewer-than-expected claims offered yet another impetus to the Federal Reserve in continuing its campaign to lift by a large amount of 75 basis points.
Seasonally adjusted weekly initial jobless claims declined 16,000 to 193,000 in the week ending September 24, the Department of Labor said Thursday.
Unadjusted initial claims fell 12,642 to 156,060 led by significant declines in Michigan (5,674), New Jersey (1,521) and New York (1,266).
The 4-week moving average declined 8,750 to 207,000.
Stock Movers
Tech stocks were under pressure after Bank of America downgraded Apple stoking anxieties of similar downgrades for other leaders in the sector.
Apple, Google, and Microsoft dropped to 18-month lows and Intel declined to a 8-year low.
Semiconductor makers, retailers, furniture makers and cruise liners were among the leading losers of the day.
The S&P 500 index fell 2.1% to 3,640.47 and the Nasdaq Composite index dropped 2.8% to 10,737.51.
Apple Inc plunged 4.9% to $142.48 after Bank of America analyst downgraded the stock to "neutral" from "buy" on the expectations of weakening consumer demand.
Bed Bath & Beyond Inc plunged 9.2% to $5.87 after the troubled retailer of home and kitchen goods reported a large quarterly loss.
The retailer's gross margin plunged after the company marked down prices on several goods to clear inventories ahead of holiday season.
Bassett Furniture Industries Inc declined 2.2% to $16.11 after the company said revenue in the fiscal 2022 third quarter rose 12.5% to $118 million from $104.9 million a year ago.
Net income in the quarter rose to $7.6 million from $3.01 million and diluted earnings per share increased to 82 cents from 31 cents a year ago.
CarMax, Inc plunged 23.7% to $65.98 after the used-car retailer reported weaker-than-expected quarterly results.
The auto retailer also said that rising rates and prices kept many buyers away in the final month of the latest quarter.
Energy Markets Flirt Gave Up Early Gains
Crude oil prices gained in early trading after U.S. oil inventories declined unexpectedly in the previous week.
Investors are also awaiting the OPEC+'s decision as the oil cartel is expected to cut supply and shore up falling price of the commodity.
Crude oil fell 60 cents to $81.58 and natural gas decreased 8 cents to $6.87 a thermal unit.
Gold, silver and iron ore closed nearly unchanged but copper gained 2% to $3.45 a pound.
Bond Yields Edge Lower After Pushing Higher
The yield on 2-year Treasury notes increased to 4.20%, on 10-year Treasury notes inched up to 3.79% and 30-year bonds advanced to 3.72%.
Eurozone Economic Sentiment Worsens
The economic sentiment - an aggregate index of business and consumer sentiment - in the euro declined to 93.7 in September from 97.3 in August, the European Commission said on Thursday.
The index dropped to a two-year low, the lowest level seen since November 2020.
Inflation expectation index increased to 41.3 in September from 37.0 in August.
Consumer Prices Jump Record 10% In Germany
Consumer prices in Germany shot up a record 10.0% from a year ago in September, according to a preliminary report released by the Federal Statistics Office or Destatis on Thursday.
Consumer price inflation accelerated after rising 7.9% in August.
On a monthly basis, prices rose 1.9% in September, slower than
The goods price surged 17.2% in September from 14.7% in August and services prices rose 3.6% from 2.2% in the corresponding period.
Italian Wholesale Prices Jump Record 40%
Wholesale prices in Italy surged to record 40.1% in August after rising 36.9% in July, the National Institute of Statistics said on Thursday.
The producer price increase was driven by a surge in energy costs of 126.8% followed by intermediate goods price increase of 17.8%, consumer goods 9.5% and capital goods 9.1%.
European Markets Accelerate Declines
Benchmark indexes in Europe resumed their declines after recession worries gripped the market.
Benchmark indexes across Europe opened weaker a day after the Bank of England intervened to stabilize bond and currency trading in the UK.
However, the boost from the emergency operation faded in less than 24 hours and the market averages and the pound resumed their slides again.
Major averages accelerated the declines after the release of the U.S. jobs report indicating the strength in the labor market.
The DAX index declined 1.6% to 11,995.17, the CAC-40 index dropped 1.44% to 5,681.94 and the FTSE 100 index fell 1.2% to 6,919.76.
Brent crude rose 80 cents to $90.111 a barrel and TTF natural gas futures plunged 9.9% to 186.50 megawatt per hour.
The euro inched higher to 97.16 U.S. cents and the British pound rebounded slightly to $1.093.
China Stocks Mixed Ahead of Holiday Week, Sensex Extends 7-day Losses
Markets in Asia traded higher following the gains in Europe and rising commodities prices.
China benchmark indexes ended flat ahead of the 7-day Golden Week holidays between October 1 and 7.
The Shanghai Composite Index eased 0.1% lower to 3,041.20, erasing most of the early gains in the day.
The Hang Seng Index ended down 0.5% to 17,165.87, after dropping to the low last seen in October 2011.
The Hang Seng index has lost about 26.5% in the year so far and dropped about 40% in the last five years.
Shanghai Composite is down 16.2% in the year so far.
In Tokyo, the Nikkei 225 index gained 1.0% to 26,422.05 and the broader Topix increased 0.7% to 1,868.80.
For the year so far, the Nikkei index is down 10.5%.
Fast Retailing Co Ltd jumped 2.2% following a similar rise in Softbank.
Pharmaceuticals and resource sector stocks led the gainers and Eisai Co Ltd soared 13.5% after the company reported an unexpected positive trial results for an experimental Alzheimer's drug.
The Japanese yen held steady at 144.52 to a dollar.
Benchmark indexes in Mumbai turned lower for the seventh day in a row ahead of the rate decision from the Reserve Bank of India on Friday.
The RBI is expected to lift the key lending rate by at least 40 basis points and stem the slide in the rupee.
The Indian rupee dropped to a new low of 81.80 to a dollar.
The Sensex index fell 188.32 points or 0.33% to 56,409.96 and the Nifty index declined 40.50 points or 0.24% to 16,818.10.
Australian stocks closed higher after crude oil and gold prices rebounded from the 9-month lows.
The ASX 200 Index increased 1.4% to 6,555.00 and the broader All Ordinaries Index added 1.5% to 6,760.60.
BHP Group, Fortescue Metals Group, Woodside Energy Group and Santos Ltd gained between 2% and 3%.
- Barry Adams
- 29 Sep, 2022
- New York City
Apple Inc plunged 5.6% to $141.39 after Bank of America analyst downgraded the stock to "neutral" from "buy" on the expectations of weakening consumer demand.
Bed Bath & Beyond Inc plunged 9.2% to $5.87 after the troubled retailer of home and kitchen goods reported a large quarterly loss.
The retailer's gross margin plunged after the company marked down prices on several goods to clear inventories ahead of holiday season.
Bassett Furniture Industries Inc declined 2.2% to $16.11 after the company said revenue in the fiscal 2022 third quarter rose 12.5% to $118 million from $104.9 million a year ago.
Net income in the quarter rose to $7.6 million from $3.01 million and diluted earnings per share increased to 82 cents from 31 cents a year ago.
CarMax, Inc plunged 23.7% to $65.98 after the used-car retailer reported weaker-than-expected quarterly results.
The auto retailer also said that rising rates and prices kept many buyers away in the final month of the latest quarter.
Cintas Corporation declined 1.7% to $387.86 after the company reported revenue in the fiscal first quarter 2023 ending in August 14.2% to $2.17 billion from $1.90 billion a year ago.
Net income in the quarter increased to $351.7 million from $331.2 million and diluted earnings per share rose to $3.39 from $3.11 a year ago.
The company also lifted its annual revenue expectations from a range of $8.47 billion to $8.58 billion to a range of $8.58 billion to $8.67 billion and diluted earnings per share from a range of $11.90 to $12.30 to a range of $12.30 to $12.65.
Jefferies Financial Group fell 1.3% to $29.34 after the financial services company reported better-than-expected quarterly profit despite the weak merger and acquisition related revenues.
The increase in corporate banking services revenues helped to mitigate the weak merger revenues.
Occidental Petroleum Corporation increased 0.7% to $61.88 and Warren Buffett-controlled Berkshire Hathaway bought nearly 6 million shares this week, according to a regulatory filing with the SEC.
Miller Knoll Inc fell 12.7% to $17.35 after the furniture maker reported mixed quarterly results.
The company also announced a plan to cut costs, lower inventories, reduce staff and improve cash flow.
Rite Aid Corporation plunged 26.5% to $5.17 after the pharmacy chain lowered its adjusted earnings estimate for the full-year.
Vail Resorts, Inc rose 2.4% to $214.66 after the ski resort operator reported smaller-than-expected quarterly loss and said that the customer demand has surpassed the pre-pandemic levels.
Worthington Industries, Inc plunged 11.6% to $43.53 after the steel processor and maker of pressure vessels said it plans to separate two businesses in two publicly traded companies.
The company reported revenue in the fiscal 2022 first quarter ending in August rose 27% to $1.4 billion from $1.1 billion a year ago.
Net income in the quarter declined to $64.08 million from $132.4 million and diluted earnings per share fell to $1.30 from $2.55 a year ago.
- Arjun Pandit
- 29 Sep, 2022
- New York City
Markets in Asia traded higher following the gains in Europe and rising commodities prices.
China benchmark indexes ended flat ahead of the 7-day Golden Week holidays between October 1 and 7.
The Shanghai Composite Index eased 0.1% lower to 3,041.20, erasing most of the early gains in the day.
The Hang Seng Index ended down 0.5% to 17,165.87, after dropping to the low last seen in October 2011.
The Hang Seng index has lost about 26.5% in the year so far and dropped about 40% in the last five years.
Shanghai Composite is down 16.2% in the year so far.
In Tokyo, the Nikkei 225 index gained 1.0% to 26,422.05 and the broader Topix increased 0.7% to 1,868.80.
For the year so far, the Nikkei index is down 10.5%.
Fast Retailing Co Ltd jumped 2.2% following a similar rise in Softbank.
Pharmaceuticals and resource sector stocks led the gainers and Eisai Co Ltd soared 13.5% after the company reported an unexpected positive trial results for an experimental Alzheimer's drug.
The Japanese yen held steady at 144.52 to a dollar.
Benchmark indexes in Mumbai turned lower for the seventh day in a row ahead of the rate decision from the Reserve Bank of India on Friday.
The RBI is expected to lift the key lending rate by at least 40 basis points and stem the slide in the rupee.
The Indian rupee dropped to a new low of 81.80 to a dollar.
The Sensex index fell 188.32 points or 0.33% to 56,409.96 and the Nifty index declined 40.50 points or 0.24% to 16,818.10.
Australian stocks closed higher after crude oil and gold prices rebounded from the 9-month lows.
The ASX 200 Index increased 1.4% to 6,555.00 and the broader All Ordinaries Index added 1.5% to 6,760.60.
BHP Group, Fortescue Metals Group, Woodside Energy Group and Santos Ltd gained between 2% and 3%.
- Bridgette Randall
- 29 Sep, 2022
- New York City
Benchmark indexes in Europe resumed their declines after recession worries gripped the market.
Benchmark indexes across Europe opened weaker a day after the Bank of England intervened to stabilize bond and currency trading in the UK.
However, the boost from the emergency operation faded in less than 24 hours and the market averages and the pound resumed their slides again.
Major averages accelerated the declines after the release of the U.S. jobs report indicating the strength in the labor market.
Initial weekly jobless claims rate dropped less-than-expected to 196,000 in the week ending September 24.
The fewer-than-expected claims offered yet another impetus to the Federal Reserve in continuing its campaign to lift by a large amount of 75 basis points.
In other economic news, a measure of sentiment weakened in September, the European Commission reported Thursday.
Eurozone Economic Sentiment Worsens
The economic sentiment - an aggregate index of business and consumer sentiment - in the euro declined to 93.7 in September from 97.3 in August, the European Commission said on Thursday.
The index dropped to a two-year low, the lowest level seen since November 2020.
Inflation expectation index increased to 41.3 in September from 37.0 in August.
Consumer Prices Jump Record 10% In Germany
Consumer prices in Germany shot up a record 10.0% from a year ago in September, according to a preliminary report released by the Federal Statistics Office or Destatis on Thursday.
Consumer price inflation accelerated after rising 7.9% in August.
On a monthly basis, prices rose 1.9% in September, slower than
The goods price surged 17.2% in September from 14.7% in August and services prices rose 3.6% from 2.2% in the corresponding period.
Record Jump In Italian Wholesale Prices
Wholesale prices in Italy surged to record 40.1% in August after rising 36.9% in July, the National Institute of Statistics said on Thursday.
The producer price increase was driven by a surge in energy costs of 126.8% followed by intermediate goods price increase of 17.8%, consumer goods 9.5% and capital goods 9.1%.
European Markets Accelerate Declines
The DAX index declined 1.6% to 11,995.17, the CAC-40 index dropped 1.44% to 5,681.94 and the FTSE 100 index fell 1.2% to 6,919.76.
Brent crude rose 80 cents to $90.111 a barrel and TTF natural gas futures plunged 9.9% to 186.50 megawatt per hour.
The euro inched higher to 97.16 U.S. cents and the British pound rebounded slightly to $1.093.
Hong Kong Extend Losses Ahead of Week of Holiday
China benchmark indexes ended flat ahead of the 7-day Golden Week holidays between October 1 and 7.
The Shanghai Composite Index eased 0.1% lower to 3,041.20, erasing most of the early gains in the day.
The Hang Seng Index ended down 0.5% to 17,165.87, after dropping to the low last seen in October 2011.
The Hang Seng index has lost about 40% in the last five years.
In Tokyo, the Nikkei 225 index gained 1.0% to 26,422.05 and the broader Topix increased 0.7% to 1,868.80.
Pharmaceuticals and resource sector stocks led the gainers.
The Japanese yen held steady at 144.52 to a dollar.
Benchmark indexes in Mumbai turned lower ahead of the rate decision from the Reserve Bank of India on Friday.
The RBI is expected to lift the key lending rate by at least 40 basis points and stem the slide in the rupee.
The Indian rupee dropped to a new low of 81.80 to a dollar.
- Barry Adams
- 29 Sep, 2022
- New York City
Stocks fell sharply and major averages reversed yesterday's gains after recession and rate-hike worries resurfaced.
The stronger-than-anticipated jobless report reinforced the strength in the labor market and provided one more signal to the Fed in continuing its campaign to lift rates.
Seasonally adjusted weekly initial jobless claims declined 16,000 to 193,000 in the week ending September 24, the Department of Labor said Thursday.
Unadjusted initial claims fell 12,642 to 156,060 led by significant declines in Michigan (5,674), New Jersey (1,521) and New York (1,266).
The 4-week moving average declined 8,750 to 207,000.
The S&P 500 index fell 1.9% to 3,647.40 and the Nasdaq Composite index dropped 2.9% to 10,721.95.
Crude oil rose 23 cents to $82.28 and natural gas decreased 19 cents to $6.77 a thermal unit.
The yield on 2-year Treasury notes increased to 4.21%, on 10-year Treasury notes inched up to 3.80% and 30-year bonds advanced to 3.75%.
European Markets Resume Slide On Recession Worries
In Europe, benchmark indexes resumed their declines after recession worries gripped the market sentiment.
The DAX index declined 1.6% to 11,995.17, the CAC-40 index dropped 1.44% to 5,681.94 and the FTSE 100 index fell 1.2% to 6,919.76.
Brent crude rose 80 cents to $90.111 a barrel and TTF natural gas futures plunged 9.9% to 186.50 megawatt per hour.
The euro inched higher to 97.16 U.S. cents and the British pound rebounded slightly to $1.093.
Hong Kong Extend Losses Ahead of Week of Holiday
In Asia, stocks in China benchmark indexes ended flat ahead of 7-day Golden Week holidays between October 1 and 7.
The Shanghai Composite Index eased 0.1% lower to 3,041.20, erasing most of the early gains in the day.
The Hang Seng Index ended down 0.5% to 17,165.87, after dropping to the low last seen in October 2011.
The Hang Seng index has lost about 40% in the last five years.
In Tokyo, the Nikkei 225 index gained 1.0% to 26,422.05 and the broader Topix increased 0.7% to 1,868.80.
Pharmaceuticals and resource sector stocks led the gainers.
The Japanese yen held steady at 144.52 to a dollar.
Benchmark indexes in Mumbai turned lower ahead of the rate decision from the Reserve Bank of India on Friday.
The RBI is expected to lift the key lending rate by at least 40 basis points and stem the slide in the rupee.
The Indian rupee dropped to a new low of 81.80 to a dollar.
- Barry Adams
- 28 Sep, 2022
- New York City
Tech stocks led the rebound on Wall Street and major averages snapped 6-day losing streak.
The U.S. dollar continued its advance against all major currencies and the euro dropped to a new record 2-decade low and the British pound fell to a new 4-decade low.
Energy and tech stocks led the gainers after crude oil rebounded from 9-month low and bond yields edged lower.
The S&P 500 index increased 1.97% to 3,719.04 and the Nasdaq Composite index jumped 2.05% to 11,051.65.
Bond market retreated from its recent highs after rising sharply in the last six sessions in a row.
Investors also noticed the strength of the U.S. dollar, lifting the hopes that the Federal Reserve may be forced to pause before resuming its advertised rate hikes.
Bond Yields Turn Lower
U.S. Treasury 10-year bond yield turned lower after rising as high as 4%, the level not seen since 2008.
The yield on 2-year Treasury notes declined to 4.12%, 10-year Treasury notes fell to 3.73% and 30-year bonds edged down to 3.68%.
Commodities Rebound
Crude oil increased $3.30 or 4.3% to $81.83 a barrel and natural gas rose 21 cents to $6.85 a thermal unit.
Gold jumped 1.9% to $1,659.12 an ounce and silver increased 2.9% to $18.19 an ounce and copper gained 1.9% to $3.38 a pound.
For the year so far, gold is down 3.8%, silver has fallen 12.1% and copper has lost 19.3%.
Lithium gained 3.1% to 510,500 yuan a ton in Shanghai trading, up 190% in the year so far.
Lithium prices continue to advance on the expectations of a rise in demand for electric vehicles in China and the U.S. after governments in both countries extended tax-breaks for purchases.
Stock Movers
Amazon, Tesla, Microsoft, Meta and Alibaba.com jumped between 1% and 4%.
Apple Inc declined 1.5% to $149.56 after Bloomberg News reported that the company canceled plans to increase production of iPhone after demand fell short of expectations.
BlackBerry Ltd fell 2.2% to $4.99 after the company reported revenue in the fiscal second quarter 2023 ending in August declined to $168 million from $175 million a year ago.
Net loss in the quarter declined to $54 million from $1181 million a year ago and diluted loss per share was 9 cents from 25 cents a year ago.
Cal-Maine Foods, Inc declined 0.3% to $60.52 after the company reported revenue in the first quarter fiscal year 2023 ending in August surged 103% to $658.3 million.
The company swung to net income of $125.1 million from a loss of $18.02 million and diluted earnings per share were $2.57 compared to a loss of 37 cents a year ago.
Conventional egg net average selling price per dozen increased to $2.368 from $0.99 a year ago, and both conventional and specialty egg revenue reached record levels for the first quarter of fiscal 2023.
The company sold 275.3 million compared to 254.6 million dozen eggs a year ago.
DocuSign Inc increased 3.9% to $54.63 after the company announced a restructuring plan and said it plans to cut as many as 9% of its staff.
The restructuring plan is estimated to cost between $30 million and $40 million, consisting primarily of employee transition cash expenses and are expected to be accounted for the fiscal year 2023 third and fourth quarters.
Paychex, Inc increased 3.1% to $116.79 after the payroll service provider reported revenue in the fiscal first quarter 2023 ending in August rose 11% to $1.2 billion from $1.08 billion a year ago.
Net income in the quarter rose 14% to $379.2 million from $333.6 million and diluted earnings per share rose to $1.05 from 92 cents a year ago.
The company reiterated its total revenue growth guidance between 7% and 8% and revised higher its adjusted diluted earnings per share growth in the range between 11% and 12% from the previous estimate between 9% and 10%.
Thor Industries, Inc rose 3.9% to $74.60 after the recreational vehicle maker reported revenue in the fiscal fourth quarter rose 6.4% to $3.8 billion from $3.59 billion a year ago.
The increase in sales was mostly driven by higher prices offsetting a decrease in unit sales.
Net income in the quarter increased to $280.9 million from $230.0 million and diluted earnings per share rose to $5.15 from $4.12 a year ago.
Consolidated sales in the year increased 32.4% to $16.3 billion and net income rose to $1.14 billion from $660.8 million and diluted earnings per share increased to $20.59 from $11.85.
Dollar Strength Whipsaws Euro and Pound
European markets rebounded from early losses and turned higher following the U.S. averages.
The Bank of England was forced to intervene and conduct a temporary bond purchase program to shore up the weakening pound.
The BoE said that the "temporary and targeted" purchase is carried out to solve a specific problem in the long-dated government bond and the step is fully indemnified by the treasury department.
The central bank's intervention arrested the decline in the pound and stabilized the bond yield for now but traders are anticipating the currency to resume its slide.
The U.K. government also faced criticism from the International Monetary Fund after the multilateral agency urged the government to reconsider unfunded tax-cuts and fiscal incentives.
The euro inched lower to 95.56 U.S. cents and the British pound fell to $1.07.
The yields on 10-year U.K. bonds held at 4.04%, the German bunds at 2.16%, French bonds at 2.72% and the Italian bonds 4.68%.
The spread between the Italian and German bonds continued to widen after the latest election results on Monday.
German market indexes were also under pressure after the consumer confidence index plunged to -42.5 in October from the revised -36.8 level in September, according to the survey released by the research group GfK Wednesday.
The French consumer confidence index declined to 79.0 in September from 82.0 in August, the statistical office Insee said Wednesday.
The DAX index inched up 0.4% to 12,183.28, the CAC-40 index gained 0.2% to 5,765.01 and the FTSE 100 index advanced 0.3% 7,005.39.
Porsche IPO
Volkswagen Group priced initial public offering of Porsche Automobil Holding SE at the top end of the pricing range at 82.50 euros a share, valuing the sports car maker above 75 billion euros.
- Barry Adams
- 28 Sep, 2022
- New York City
Stocks rebounded in early trading and Treasury yields inched lower on the expectations that the Federal Reserve may pause.
The U.S. dollar continued its advance against all major currencies and the euro dropped to a new record 2-decade low and the British pound fell to a new 4-decade low.
Energy and tech stocks led the gainers after crude oil rebounded from 9-month low and bond yields edged lower.
The S&P 500 index increased 2.1% to 3,721.24 and the Nasdaq Composite index rose 2.1% to 11,054.15.
Amazon, Tesla, Microsoft and Alibaba.com jumped between 1% and 1.2%.
Apple Inc declined 2.5% to $147.86 after Bloomberg News reported that the company canceled plans to increase production of iPhone after demand fell short of expectations.
BlackBerry Ltd fell 2.2% to $4.99 after the company reported revenue in the fiscal second quarter 2023 ending in August declined to $168 million from $175 million a year ago.
Net loss in the quarter declined to $54 million from $1181 million a year ago and diluted loss per share was 9 cents from 25 cents a year ago.
Cal-Maine Foods, Inc declined 0.3% to $60.52 after the company reported revenue in the first quarter fiscal year 2023 ending in August surged 103% to $658.3 million.
The company swung to net income of $125.1 million from a loss of $18.02 million and diluted earnings per share were $2.57 compared to a loss of 37 cents a year ago.
Conventional egg net average selling price per dozen increased to $2.368 from $0.99 a year ago, and both conventional and specialty egg revenue reached record levels for the first quarter of fiscal 2023.
The company sold 275.3 million compared to 254.6 million dozen eggs a year ago.
DocuSign Inc increased 3.9% to $54.63 after the company announced a restructuring plan and said it plans to cut as many as 9% of its staff.
The restructuring plan is estimated to cost between $30 million and $40 million, consisting primarily of employee transition cash expenses and are expected to be accounted for the fiscal year 2023 third and fourth quarters.
Paychex, Inc increased 3.1% to $116.79 after the payroll service provider reported revenue in the fiscal first quarter 2023 ending in August rose 11% to $1.2 billion from $1.08 billion a year ago.
Net income in the quarter rose 14% to $379.2 million from $333.6 million and diluted earnings per share rose to $1.05 from 92 cents a year ago.
The company reiterated its total revenue growth guidance between 7% and 8% and revised higher its adjusted diluted earnings per share growth in the range between 11% and 12% from the previous estimate between 9% and 10%.
Thor Industries, Inc rose 3.9% to $74.60 after the recreational vehicle maker reported revenue in the fiscal fourth quarter rose 6.4% to $3.8 billion from $3.59 billion a year ago.
The increase in sales was mostly driven by higher prices offsetting a decrease in unit sales.
Net income in the quarter increased to $280.9 million from $230.0 million and diluted earnings per share rose to $5.15 from $4.12 a year ago.
Consolidated sales in the year increased 32.4% to $16.3 billion and net income rose to $1.14 billion from $660.8 million and diluted earnings per share increased to $20.59 from $11.85.
- Bridgette Randall
- 28 Sep, 2022
- Frankfurt
European markets rebounded from early losses and turned higher following the U.S. averages.
The Bank of England was forced to intervene and conduct a temporary bond purchase program to shore up the weakening pound.
The BoE said that the "temporary and targeted" purchase is carried out to solve a specific problem in the long-dated government bond and the step is fully indemnified by the treasury department.
The central bank's intervention arrested the decline in the pound and stabilized the bond yield for now but traders are anticipating the currency to resume its slide.
The U.K. government also faced criticism from the International Monetary Fund after the multilateral agency urged the government to reconsider unfunded tax-cuts and fiscal incentives.
The euro inched lower to 95.56 U.S. cents and the British pound fell to $1.07.
The yields on 10-year U.K. bonds held at 4.04%, the German bunds at 2.16%, French bonds at 2.72% and the Italian bonds 4.68%.
The spread between the Italian and German bonds continued to widen after the latest election results on Monday.
German market indexes were also under pressure after the consumer confidence index plunged to -42.5 in October from the revised -36.8 level in September, according to the survey released by the research group GfK Wednesday.
The French consumer confidence index declined to 79.0 in September from 82.0 in August, the statistical office Insee said Wednesday.
The DAX index inched up 0.4% to 12,183.28, the CAC-40 index gained 0.2% to 5,765.01 and the FTSE 100 index advanced 0.3% 7,005.39.
In commodities trading, crude oil and natural gas prices rebounded from the lows seen last week.
Brent crude oil jumped 3% to $88.88 a barrel and TTF natural gas futures soared 11.3% to 217.19 euros a megawatt hour.
Gold jumped 2.0% to $1,660.32 an ounce and silver increased 2.9% to $18.19 an ounce and copper gained 1.9% to $3.38 a pound.
- Barry Adams
- 28 Sep, 2022
- New York City
Stocks rebounded in early trading and Treasury yields inched lower on the expectations that the Federal Reserve may pause.
The U.S. dollar continued its advance against all major currencies and the euro dropped to a new record 2-decade low and the British pound fell to a new 4-decade low.
Energy and tech stocks led the gainers after crude oil rebounded from 9-month low and bond yields edged lower.
The S&P 500 index increased 0.95% to 3,682.90 and the Nasdaq Composite index rose 0.8% to 10,941.35.
Amazon, Tesla, Microsoft and Alibaba.com jumped between 1% and 1.2%.
Apple Inc declined 3.3% after Bloomberg News reported that the company canceled plans to increase production of iPhone after demand fell short of expectations.
Crude oil increased $2.20 or 2.8% to $80.73 a barrel and natural gas fell 7 cents to $6.56 a thermal unit.
The yield on 2-year Treasury notes declined to 4.15%, 10-year Treasury notes fell to 3.78% and 30-year bonds edged down to 3.69%.
European markets rebounded from early losses and turned higher following the U.S. averages.
The Bank of England was forced to intervene and conduct a temporary bond purchase program and shore up the weakening pound.
The central bank's intervention arrested the decline in the pound and stabilized the bond yield for now but traders are anticipating the currency to resume its slide.
The DAX index inched up 0.3% to 12,177.24, the CAC-40 index gained 0.2% to 5,763.22 and the FTSE 100 index advanced 0.3% 7,005.39.
The euro inched lower to 95.56 U.S. cents and the British pound fell to $1.07.
The yields on 10-year U.K. bonds held at 4.04%, the German bunds at 2.16%, French bonds at 2.72% and the Italian bonds 4.68%.
The spread between the Italian and German bonds continued to widen after the latest election results on Monday.
- Brian Turner
- 27 Sep, 2022
- New York City
Cracker Barrel Old Country Store, Inc rose 0.7% to $98.44 after the restaurant chain operator reported revenue in the fourth quarter ending on July 29th rose 5.9% to $830.4 million.
Comparable restaurant sales increased 6.1% and retail sales rose 3.0%.
The restaurant company also increased menu prices by 7.0% from a year ago.
Net income in the period decreased 8.0% to $33.4 million from $36.4 million and diluted earnings per share declined to $1.47 from $1.53 a year ago.
For the fiscal year, revenue rose $3.3 billion from $2.8 billion a year ago and net income plunged 48% to $131.8 million from $254.5 million a year ago.
Dividend and Stock Buy Back
The company announced that its Board of Directors declared a regular quarterly dividend of $1.30 a share.
Cracker Barrel paid $29.9 million in dividends and repurchased $58.1 million in shares for a total of $88.1 million in the fourth quarter and returned to shareholders a total $246.4 million during the full fiscal year.
The quarterly dividend is payable on November 8, 2022 to shareholders of record as of October 21, 2022.
Fiscal 2023 Outlook
The company guided total revenues to increase between 7% and 8% from the previous year, including 3 to 4 new namesake restaurants and between 15 to 20 Maple Street Biscuit Company units.
The restaurant company anticipates food and commodities prices to rise 8% and moderate sequentially every quarter.
Operating income is expected to rise between 8% and 10% and sequentially improve on a quarterly basis as the year progresses.
Capital expenditure is expected around $125 million, including $30 million for new store development.
- Barry Adams
- 27 Sep, 2022
- New York City
Early morning momentum dissipated after two hours of trading and major averages struggled to climb back into positive territory.
The U.S. Treasury 10-year yield rose to a high not seen at least in a decade as investors adjust to more rate hikes at the next two remaining meetings of the Fed's policymakers.
Tech stocks led the gainers on the hopes that the recent sell-off was overdone.
The S&P 500 index decreased 0.3% to 3,697.26 and extended losses to the sixth day in a row and the Nasdaq Composite index added 0.2% to 10,820.59.
The S&P 500 index is down 24% and the Nasdaq Composite index is below 31.6% in the year so far.
Tesla, Amazon, Apple, Microsoft and Visa gained between 0.5% and 2%.
Energy complex stocks also gained after crude oil rebounded 2%.
Exxon Mobil, Chevron, Hess Corp and Schlumberger added between 1% and 2%.
Crude oil gained $1.87 or 1.8% to $78.57 and natural gas decreased 18 cents to $6.71 a thermal unit.
The yield on 2-year Treasury notes edged down to 4.30%, 10-year Treasury notes inched higher to 3.973% and 30-year bonds increased to 3.85%.
Home builders dropped at least 1% following the rise in bond yields on the worries that mortgage rates may reach as high as 7% in the first-half of 2023.
U.S. Stock Movers
Energy stocks traded higher after crude oil rebounded 2% from its nine-month low to $78.69 a barrel.
Exxon Mobil, Hess Corp, Schlumberger and BP plc gained between 1% and 2%.
Cracker Barrel Old Country Store, Inc rose 0.7% to $98.44 after the restaurant chain operator reported revenue in the fourth quarter ending on July 29th rose 5.9% to $830.4 million.
Comparable restaurant sales increased 6.1% and retail sales rose 3.0%.
Net income in the period decreased 8.0% to $33.4 million from $36.4 million a year ago.
For the fiscal year, revenue rose $3.3 billion from $2.8 billion a year ago and net income plunged 48% to $131.8 million from $254.5 million a year ago.
Hertz Global Holdings Inc increased 2.4% to $16.20 after the rental car company announced a partnership with BP Plc's electric vehicle charging unit to place thousands of charging stations to power the company's fleet.
Jabil Inc increased 1.2% to 56.86 after the electronics manufacturing services provider said revenue in the quarter ending in August increased to $9 billion from $7.4 billion a year ago.
Net income increased to $315 million from $175 million and diluted earnings per share rose to $2.25 from $1.75 a year ago.
The company guided fiscal first quarter 2023 revenue to increase 9% from a year ago in the range between $9 billion and $9.6 billion and diluted earnings per share between $1.65 and $2.05.
The company also announced a buyback plan of up to $1 billion of its own stock over the next two years.
United Natural Foods Inc dropped 1.8% to $37.77 after the food wholesaler said revenue in the fourth quarter ending in July rose 8.0% to $7.3 billion.
Net income decreased 9.3% to $39 million from $43 million and diluted earnings per share fell to 63 cents from 69 cents a year ago.
For the fiscal year 2022, net sales increased 7.3% to $28.9 billion and net income increased 66.4% to $248 million from $149 million or $4.07 from $2.48 a year ago.
New Home Sales Soar In August
Single-family new home sales in August rose unexpectedly, according to the latest report from the U.S. Commerce Department Tuesday.
Home sales soared 28.8% to an annual rate 685,000 from the revised rate of 5.6% decline to 532,000 in July.
Home sales rate has been steadily declining since hitting the high of 839,000 in December 2021 and dropped to a low of 532,000 in July, matching the March 2016 data.
Median home price in August was $436,800, a decline of 6.3% from $466.300 but 8.0% higher from $404,300 a year ago.
Last week, the National Association of Realtors said existing home sales declined for the seventh month in a row in August but the pace of decline eased to 0.4% to 4.8 million from the previous month's fall of 5.7% to 4.82 million in July.
U.S. Durable Orders Fall in August
Seasonally adjusted durable goods orders fell on a monthly basis 0.2% in August following the revised 0.1% decline in July, the U.S. Census Bureau reported Tuesday.
The new orders not adjusted for seasonal factors surged 10.9% from a year ago.
On a monthly basis, excluding transportation, new orders increased 0.2% and excluding defense, new orders decreased 0.9%.
Europe Battles Rising Inflation, Rates and Dollar
In Europe, benchmark indexes advanced after investors searched for beaten down stocks in financials and energy sectors.
The DAX index increased 0.6% to 12,299.50, the CAC-40 index added 0.7% to 5,810.25 and the FTSE 100 index inched higher 0.1% to 7,028.24.
European markets lacked direction as investors worried that rapid rise in interest rates may dip the economy into a recession without killing the high inflation.
Natural gas prices rebounded in Amsterdam trading and the TTF gas price futures for the immediate month delivery increased as much as 12% before cooling to 8.5% gain to 188.34 euros a megawatt hour.
Brent crude oil also rebounded 2.9% from a nine-month low to $86.56 a barrel.
The U.S. dollar paused its year-long advance and the euro traded at 96.25 cents and the British pound edged up to $1.77.
The British pound is expected to test its parity with the U.S. dollar and the euro in the coming weeks as the island nation struggles with rising cost of energy imports, falling government revenues and rising sovereign borrowing.
Currency traders are anticipating the pound to drop as low as 93 U.S. cents if the Bank of England fails to intervene and lift interest rates in an emergency meeting.
Asian Markets Rebound from Extended Losses
Asian markets closed higher in a cautious trading as indexes in Japan and China rebounded but in India and Australia edged lower.
The Nikkei 225 index increased 0.5% to 26,571.87, while the broader Topix closed 0.5% higher at 1,873.01.
The Bank of Japan carried out an unscheduled operation to curb currency speculation and control the rapid decline in yen and Finance Minister Sunichi Suzuki cautioned currency traders to avoid speculative bets.
The People's Bank of China injected more liquidity to financial system and dampen the rising stress in dollar-renminbi trades.
The central bank added $24.7 billion in the repo market ahead of the end of the quarter.
The Sensex index in India edged down for the fifth day in a row and fell 37.70 points or 0.07% to 57,107.52 and the Nifty index 8.90 points or 0.05% to 17,007.40.
The Indian economy is one of the few bright spots in the world, most developed economies are heading to a recession and emerging markets are battling sharp currency devaluations.
A mix of global economic slowdown and elevated inflation has kept investors on edge in India, despite the encouraging domestic economic scenario.
Moreover, India is expected to benefit as more companies look to relocate from China and diversify their manufacturing base.
The Shanghai Composite Index jumped 1.4% to 3,093.86, while Hong Kong's Hang Seng Index gained fractionally to close at 17,860.31.