- Brian Turner
- 17 Aug, 2022
- New York City
Federal Reserve policymakers are less likely to step away from hiking rates until inflation declined substantially, showed the latest minutes released for the meeting held in late July released today.
The policymakers at the last Fed's meeting discussed the need to bring down inflation but some members also worried that the Fed may overshoot on its rate hike program hurting the economy.
Policymakers noted that the recent decline in gasoline prices could not be relied on providing the basis for sustained inflation in the long run. as these prices could quickly rebound.
"Participants agreed that there was little evidence to date that inflation pressures were subsiding.
They judged that inflation would respond to monetary policy tightening and the associated moderation in economic activity with a delay and would likely stay uncomfortably high for some time.
Participants also observed that in some product categories, the rate of price increase could well pick up further in the short run, with sizable additional increases in residential rental expenses being especially likely," the minutes noted.
- Brian Turner
- 17 Aug, 2022
- New York City
Retail sales adjusted for seasonal factors but not for price variations were flat in July compared to June but increased 10.3% from a year ago, the Census Bureau reported Wednesday.
Retail sales in July , excluding auto and gasoline, increased 0.7% from the previous month and rose 9.3% from a year ago.
Gasoline stations sales were up 39.9% from a year ago, while sales at non-store retailers were up 20.2% from last year.
Gasoline station sales in July fell 1.8% from the previous month.
The August 2022 Advance Monthly Retail report is scheduled for release on September 15, 2022 at 8:30 a.m. EDT.
- Barry Adams
- 17 Aug, 2022
- New York City
Stocks lacked direction in early trading after advancing for five days in a row and investors focused on the latest batch of retail earnings.
Federal Reserve policymakers are less likely to step away from hiking rates until inflation declined substantially, the latest minutes released for the meeting held in late July released today.
The policymakers at the last Fed's meeting discussed the need to bring down inflation but some members also worried that the Fed may overshoot on its rate hike program hurting the economy.
Policymakers noted that the recent decline in gasoline prices could not be relied on providing the basis for sustained inflation in the long run. as these prices could quickly rebound.
"Participants agreed that there was little evidence to date that inflation pressures were subsiding.
They judged that inflation would respond to monetary policy tightening and the associated moderation in economic activity with a delay and would likely stay uncomfortably high for some time.
Participants also observed that in some product categories, the rate of price increase could well pick up further in the short run, with sizable additional increases in residential rental expenses being especially likely," the minutes noted.
On another note, housing market turmoil is likely to continue for a while after mortgage applications dropped to a two-decade low.
Total mortgage applications volume declined 2% in the last week from the previous week, according to the Mortgage Bankers Association.
Mortgage applications declined 1% from the previous week and dropped 18% from a year ago as more buyers walk away from home contracts or drop out of the housing market.
Mortgage applications are running at a 22-year low.
The average contract interest for 30-year fixed-rate mortgages declined to 5.45% from 5.47% in the previous week but higher than 3.0% from a year ago.
The loan origination fee fell to 0.57 points from 0.80 points a year ago for loans with 20% down payment.
Retail sales adjusted for seasonal factors but not for price variations were flat in July compared to June but increased 10.3% from a year ago, the Census Bureau reported Wednesday.
Futures of crude oil edged up 76 cents to $87.29 a barrel and natural gas decreased 14 cents to $9.18 a thermal unit.
The S&P 500 index fell 0.7% to 4,274.09 and the Nasdaq Composite index declined 1.3% to 12,938.12.
The yield on 10-year Treasury notes increased to 2.90% and 2-year yield notes advanced to 3.28%.
Target Corporation declined 2.7% to $175,34 after the retailer reported a sharp decline in earnings after the company marked down items to clear excess inventories.
Second quarter revenues increased 3.5% to $26.0 billion from $25.2 billion a year ago.
Net income in the quarter plunged to $183 million from $1.82 billion a year ago. Diluted earnings per share dropped to 39 cents from $3.65 a year ago.
Target reiterated its prior guidance for full-year revenue growth in the low- to mid-single digit range, and an operating margin rate in a range around 6% in the second-half of the year.
Lowe's Companies increased 0.6% to $215.75 after the home improvement retailer said second quarter revenues decreased to $27.5 billion from $27.6 billion a year ago.
Second quarter net income was flat at $3 billion and diluted earning per share increased to $4.68 from $4.27 a year ago.
- Bridgette Randall
- 17 Aug, 2022
- Frankfurt
Market indexes in Europe closed down after a fresh batch of data slowing growth in the region and rising inflation in the U.K.
The economy in the euro area expanded at 0.6% in the second quarter, faster than the 0.5% growth in the first quarter, the statistics agency eurostat reported Wednesday.
The economic expansion was slower than previously estimated at 0.7% in the preliminary report released on July 29.
On an annual basis, the revised economic growth in the second quarter fell to 3.9% from 5.4% in the first quarter rate. The annual growth was revised lower from the previous estimate of 4%.
Consumer prices accelerated in July and inflation perked up to 10.1%, a four-decade high, from 9.4% in June, said the Office for National Statistics Wednesday.
On a monthly basis, consumer prices rose 0.6% in July after rising at 0.8% in June.
"Food prices rose notably, particularly bakery products, dairy, meat and vegetables, which was also reflected in higher takeaway prices," said the ONS Chief Economist Grant Fitzner.
Home prices in the U.K. rose at 7.8% annual rate in June after rising at 12.8% in May, a separate report from the ONS noted today.
The average home prices increased 20,000 pounds from a year ago to 286,000 pounds in June.
The DAX index declined 2.1% to 13,626.71, the CAC-40 index dropped 1% to 6,528.32, and the FTSE 100 index fell 0.3% to 7,515.75.
Cineworld Group Plc plunged 60% to a record low 8.25 pence after the operator of movie theaters said audience sizes are low because of "limited" movie releases.
"Despite a gradual recovery of demand since reopening in April 2021, recent admission levels have been below expectations.
These lower levels of admissions are due to a limited film slate that is anticipated to continue until November 2022 and are expected to negatively impact trading and the Group's liquidity position in the near term," noted the company in its trading update released Wednesday.
The company is looking to deleverage its balance sheet and cautioned "any deleveraging transaction will likely result in very significant dilution of existing equity interests in Cineworld."
The company operated 9,189 screens at 750 sites around the world with 68% screens located in the United States.
Uniper SE declined 12% to 6.81 euros after the company reported first-half loss of 12 billion euros after Russia reduced its delivery of natural gas.
The utility company received 15 billion euros of capital injection from the German government last month.
Sanofi SA declined 5.6% to 81.67 euros after the French drugmaker discontinued its breast cancer treatment, amcenestrant, after the drug was ineffective in several trials.
- Scott Peters
- 17 Aug, 2022
- New York City
Target Corporation declined 3.3% to $174,14 after the retailer reported a sharp decline in earnings after the company marked down items to clear excess inventories.
Second quarter revenues increased 3.5% to $26.0 billion from $25.2 billion a year ago.
Comparable sales grew 2.6% in the second quarter, reflecting comparable store sales growth of 1.3% and comparable digital sales growth of 9.0%.
Higher gasoline prices drove many customers to shop online.
Second quarter gross margin plunged to 21.5%, compared with 30.4% a year ago.
"This year's gross margin rate reflected higher markdown rates, driven primarily by inventory impairments and actions taken to address lower-than-expected sales in discretionary categories, as well as higher merchandise, inventory shrink, and freight costs," the company's earnings release noted.
Net income in the quarter plunged to $183 million from $1.82 billion a year ago. Diluted earnings per share dropped to 39 cents from $3.65 a year ago.
Target reiterated its prior guidance for full-year revenue growth in the low- to mid-single digit range, and an operating margin rate in a range around 6% in the second-half of the year.
In the second quarter, Target paid dividends of $417 million compared to $336 million a year ago, a 32.4% increase in the dividend per share, partially offset by a decline in average share count.
Target repurchased $2.6 billion worth of its shares through the accelerated share repurchase program which ended in June, reflecting the retirement of 12.5 million shares of common stock at an average price of $211.58.
The retailer still have $9.7 billion available in its stock repurchase program authorized in August 2021 by the company's board of directors.
- Scott Peters
- 17 Aug, 2022
- New York City
TJX Companies Inc increased 3.9% to $69.30 and the discount retailer lowered its annual revenues outlook and reported same store sales declined.
The parent of Marshalls, Home Goods, and T.J. Maxx retail chains said second quarter revenues declined to $11.8 billion from $12.1 billion.
Net income increased to $809.3 million from $785.6 million a year ago and diluted earnings per share increased to 29 cents from 26 cents a year ago.
U.S. comparable sales declined 5% after rising 21% a year ago.
Second quarter U.S. comparable sales at Marshalls and T.J. Maxx chains declined 2% after rising 18% in the period a year ago and at Home Goods declined 13% after rising 36% in the quarter a year ago.
Inventories at the end of the quarter increased to $7.1 billion from $5.1 billion at the end of the January 2022 when the fiscal year 2022 ended.
- Scott Peters
- 17 Aug, 2022
- New York City
Lowe's Companies increased 1.6% to $217.45 after the home improvement retailer issued a cautious outlook and cited strong macroeconomic headwinds.
Lowe's said second quarter revenues edged down to $27.5 billion from $27.6 billion a year ago.
Comparable sales in the quarter declined 0.3%.
Comparable sales for the U.S. home improvement business increased 0.2% for the second quarter.
DIY sales were impacted by the shortened spring and lower demand in certain discretionary categories partially offset by a 13% increase in Pro customer sales.
Second quarter net income was flat at $3 billion and diluted earning per share increased to $4.68 from $4.27 a year ago.
During the quarter, Lowe's repurchased approximately 21.6 million shares for $4.0 billion and paid $524 million in dividends.
The company estimated full-year 2022 total and comparable sales toward the bottom end of its outlook range, and expects operating income and diluted earnings per share toward the top end of its outlook range.
Including the 53rd week, Lowe's estimates total sales between $97 billion and $99 billion and comparable sales between the range of 1% decline and increase.
Diluted earnings per share are estimated to fall between $13.10 and $13.60 and repurchase a total of $12 billion of its shares.
- Scott Peters
- 17 Aug, 2022
- New York City
Krispy Kreme Inc declined 11.8% to $12.80 after the doughnut chain operator reported weaker-than-expected revenues and earnings.
Second quarter revenues increased 7.5% to $375.2 million and net loss declined to $2.4 million from $15.0 million a year ago.
Revenues in the U.S. and Canada increased 8.5% to $250.5 million.
Diluted loss per share fell to 2 cents from 15 cents a year ago.
Krispy Kreme lowered its 2022 revenues outlook in the range between $1.49 billion and $1.52 billion from the previous estimate between $1.53 billion and $1.56 billion.
- Scott Peters
- 17 Aug, 2022
- New York City
Compass Inc declined 12.7% to $3.87 after the real estate broker's quarterly loss expanded and the company lowered it annual revenue estimate.
Second quarter revenues increased 4% to $2.0 billion and net loss soared to $101 million from $7 million a year ago.
Compass guided third quarter revenues between $1.4 billion and $1.5 billion and full-tear 2022 revenues between $6.15 billion and $6.45 billion.
The 2022 revenues estimate was significantly lowered from the previous estimate between $7.6 billion and $8.0 billion released at the time of first quarter results.
- Barry Adams
- 17 Aug, 2022
- New York City
Stocks lacked direction in early trading after advancing for five days in a row and investors focused on the latest batch of retail earnings.
Futures of crude oil edged up $1.42 to $87.97 a barrel and natural gas decreased 9 cents to $9.13 a thermal unit.
The S&P 500 index fell 0.8% to 4,269.91 and the Nasdaq Composite index declined 1.5% to 12,908.96.
The yield on 10-year Treasury notes increased to 2.88% and 3-year yield notes advanced to 3.32%.
Bed Bath & Beyond soared 21.5% to $25.10 and the retailer extended gains to more than 400% after the Reddit message board followers piled in.
Bed Bath stock has closed up every day for three weeks in a row.
Compass Inc declined 9.5% to $4.03 after the real estate broker said second quarter revenues increased 4% to $2.0 billion and net loss soared to $101 million from $7 million a year ago.
Compass guided third quarter revenues between $1.4 billion and $1.5 billion and full-tear 2022 revenues between $6.15 billion and $6.45 billion.
The 2022 revenues estimate was significantly lowered from the previous estimate between $7.6 billion and $8.0 billion released at the time of first quarter results.
Krispy Kreme Inc declined 11.8% to $12.80 after the doughnut chain operator reported weaker-than-expected revenues and earnings.
Second quarter revenues increased 7.5% to $375.2 million and net loss declined to $2.4 million from $15.0 million a year ago.
Diluted loss per share fell to 2 cents from 15 cents a year ago.
Krispy Kreme lowered its 2022 revenues outlook in the range between $1.49 billion and $1.52 billion from the previous estimate between $1.53 billion and $1.56 billion.
Lowe's Companies increased 1.6% to $217.45 after the home improvement retailer said second quarter revenues decreased to $27.5 billion from $27.6 billion a year ago.
Second quarter net income was flat at $3 billion and diluted earning per share increased to $4.68 from $4.27 a year ago.
Target Corporation declined 3.3% to $174,14 after the retailer reported a sharp decline in earnings after the company marked down items to clear excess inventories.
Second quarter revenues increased 3.5% to $26.0 billion from $25.2 billion a year ago.
Net income in the quarter plunged to $183 million from $1.82 billion a year ago. Diluted earnings per share dropped to 39 cents from $3.65 a year ago.
Target reiterated its prior guidance for full-year revenue growth in the low- to mid-single digit range, and an operating margin rate in a range around 6% in the second-half of the year.
TJX Companies Inc increased 3.9% to $69.30 after the discount retailer lowered its annual revenues outlook.
The parent of Marshalls, Home Goods, and T.J. Maxx retail chains said second quarter revenues declined to $11.8 billion from $12.1 billion.
Net income increased to $809.3 million from $785.6 million a year ago and diluted earnings per share increased to 29 cents from 26 cents a year ago.
Second quarter U.S. comparable sales at Marshalls and T.J. Maxx chains declined 2% after rising 18% in the period a year ago and at Home Goods declined 13% after rising 36% in the quarter a year ago.
- Barry Adams
- 17 Aug, 2022
- New York City
Stocks lacked direction in early trading after advancing for five days in a row and investors focused on the latest batch of retail earnings.
The Federal Reserve is set to release the latest minutes of meetings as investors look for insights and clues for the size of next rate hikes.
Total mortgage applications volume declined 2% in the last week from the previous week, according to the Mortgage Bankers Association.
Mortgage applications declined 1% from the previous week and dropped 18% from a year ago as more buyers walk away from home contracts or drop out of the housing market.
Mortgage applications are running at a 22-year low.
The average contract interest for 30-year fixed-rate mortgages declined to 5.45% from 5.47% in the previous week but higher than 3.0% from a year ago.
The loan origination fee fell to 0.57 points from 0.80 points a year ago for loans with 20% down payment.
Retail sales adjusted for seasonal factors but not for price variations were flat in July compared to June but increased 10.3% from a year ago, the Census Bureau reported Wednesday.
Futures of crude oil edged up $1.42 to $87.97 a barrel and natural gas decreased 9 cents to $9.13 a thermal unit.
The S&P 500 index fell 0.8% to 4,269.91 and the Nasdaq Composite index declined 1.5% to 12,908.96.
The yield on 10-year Treasury notes increased to 2.88% and 3-year yield notes advanced to 3.32%.
Target Corporation declined 3.3% to $174,14 after the retailer reported a sharp decline in earnings after the company marked down items to clear excess inventories.
Second quarter revenues increased 3.5% to $26.0 billion from $25.2 billion a year ago.
Net income in the quarter plunged to $183 million from $1.82 billion a year ago. Diluted earnings per share dropped to 39 cents from $3.65 a year ago.
Target reiterated its prior guidance for full-year revenue growth in the low- to mid-single digit range, and an operating margin rate in a range around 6% in the second-half of the year.
Lowe's Companies increased 1.6% to $217.45 after the home improvement retailer said second quarter revenues decreased to $27.5 billion from $27.6 billion a year ago.
Second quarter net income was flat at $3 billion and diluted earning per share increased to $4.68 from $4.27 a year ago.
- Barry Adams
- 16 Aug, 2022
- New York City
U.S. stocks traded mixed after investors digested the latest batch of earnings and looked ahead to the release of the Fed's minutes of meetings on Wednesday.
Retailers traded higher after better-than-expected quarterly results from Home Depot and Walmart, lifting hopes for other retail companies scheduled to release earnings during the week.
Rising sales at Walmart and Home Depot suggested that despite the elevated inflation and retail gasoline prices consumer spending is still growing.
Natural gas prices continued to advance after several regions in the U.S. continue to experience above average temperatures.
Stocks struggled in the first two hours of trading following the weakness in tech and semiconductor stocks.
The strength in the retail sector lifted benchmark indexes above the flat-line in volatile trading.
Popular indexes dipped below the flat-line after 2: p.m. but managed to rebound near the close.
The S&P 500 index increased 0.2% to 4,305.20 and the Nasdaq Composite index fell 0.2% to 13,102.55.
Futures of crude oil declined $2.45 to $86.98 a barrel and natural gas increased 63 cents to $9.34 a thermal unit.
The yield on 10-year U.S. Treasury notes increased 5 ticks to 2.81% and 2-year notes rose to 3.21%.
Ally Financial increased 3.4% to $36.92 after the Berkshire Hathaway's latest 13-F regulatory filing showed that the company tripled its stake in the online bank in the second quarter.
Bed Bath & Beyond soared nearly 70% and closed up 29% to $20..65 after the Reddit traders ramped up buying after the news that the GameStop chairman Ryan Cohen purchased 1.6 million call options with strike prices between $60 and $80 a share.
Home Depot Inc added 5.7% to $332.56 after the home improvement retailer said second quarter sales rose 6.5% to $43.8 billion.
Net income in the quarter rose to $5.2 billion or $5.05 a diluted share compared to $4.8 billion or $4.53 a diluted share a year ago.
U.S. comparable sales increased 5.4% in the quarter and customer transactions declined 3% to 467.4 million but the average ticket size rose 9.1% to $90.02.
The retailer reaffirmed its total and same store sales guidance for the fiscal year 2022 to 3.0% and diluted earnings per share to grow in mid-single digits percentage.
ThredUp soared 16.4% to $3.59 after the online apparel resale platform operator said second quarter total revenues increased 27% to $76.4 million.
Gross margin in the second quarter fell to 68.9% from 73.6% a year ago.
Net loss in the quarter expanded to $28.4 million from $14.4 million a year ago.
Active buyers increased 29% to 1.7 million and active orders soared 40% to 1.7 million in the second quarter.
The retailer guided third quarter revenues between $64 million and $66 million and gross margin between 65% and 67%.
Walmart Inc increased 6.2% to $140.81 after the retailer reported better-than-expected revenues and earnings in the second and also lowered its decline in annual earnings than previously expected.
Total revenues in the second quarter increased 8.4% to $152.9 billion and net income rose 20.4% to $5.2 billion from $4.3 billion a year ago.
Diluted earnings per share increased $1.88 from $1.52 a year ago.
Comparable sales, excluding fuel, increased 6.5% at the U.S. Walmart location and surged 9.5% at Sam's Club.
The retailer said full-year total sales are expected to rise 4.5% and the U.S. sales, excluding fuel, are estimated to increase 4% and in the second-half expand 3%.
Ziprecruiter Inc dropped 7.3% to $19.45 after the online employment website operator said second quarter revenues increased 31% to $239.9 million.
The company swung to net income of $13.1 million from a loss of $53.3 million a year ago. Diluted earnings per share were 11 cents compared to a loss of 55 cents.
Ziprecuiter stock declined after the company said during the conference call with investors that the demand for employees began to soften towards the end of the quarter.
European Markets Look Beyond Economic Data
European markets traded higher in choppy trading and investors focused on corporate earnings and ignored the latest news on the economy.
The indicator economic sentiment in the eurozone and Germany declined in August, according to the latest data released by the ZEW on Tuesday.
The U.K. payrolls expanded i2.9% or 847,000 in July from a year ago and rose 0.2% or 73,000 from June, the ONS said Tuesday.
The median monthly pay increased 6.6% from a year ago and rose 13.4% from February 2020 or just before the onset of the Covid-19 pandemic.
The employment data are preliminary and are expected to be revised.
The latest data employment data indicated that the wage gains are significantly lagging the inflation and real wages are declining in the U.K.
The DAX index increased 0.7% to 13,910.12, the CAC-40 index rose 0.4% to 6,592.58, and the FTSE 100 index advanced 0.4% to 7,536.06.
Philips NV rose 2% to 19.89 euros after the Dutch company announced the CEO succession.
Pandora AS declined 6.2% to 501.20 Danish Krone after the costume jewelry company said second quarter operating profit declined on higher costs.
Revenues in the quarter increased 3% to 5.65 billion Danish Krone and operating profit declined to 1.25 billion from 1.3 billion Danish Krone.
U.S. sales declined 1.2% in the quarter and China sales were impacted by the ongoing Covid-19 lockdowns affecting organic sales by 4 percentage points from 2021 and 7 percentage points from 2019.
Net income in the period declined to 934 million from 992 million Danish Krone.
The company retained its revenue growth outlook for the year between 4% and 6% and operating margin in the range of 25% and 25.5%.
Ted Baker increased 17% to 108.80 pence after the fashion retailer agreed to an acquisition offer of 211 million pounds from the parent of Reebok, Juicy Couture, and David Beckham Authentic Brands Group.
Delivery Hero SE increased 5.4% to 52.68 euros after the German-food delivery company reiterated its full-year outlook released in July.
Mondi Group declined 2.2% to 1,636 pence after the packaging company agreed to acquire the Duino paper plant from Burgo Group of Italy for 40 million euros.
BHP Group soared 5.3% to 2,349.74 after the mining giant reported record quarterly results in 11 years and said it plans to return a record amount of cash to shareholders.
Net income in the fiscal year 2022 ending in June increased 173% to $30 billion and earnings per share shot up to $6.10 from $2.23 a year ago.
The Anglo-American mining giant announced a final dividend of $1.75 a share or $8.9 billion, bringing total cash dividends for the full-year to a record $3.25 per share or 77% payout ratio.
The annual profit included an exceptional after-tax gain of $7.1 billion reflects a net gain on merger of BHP
- Bridgette Randall
- 16 Aug, 2022
- Frankfurt
European markets traded higher in choppy trading and investors focused on corporate earnings and ignored the latest news on the economy.
The indicator economic sentiment in the eurozone and Germany declined in August, according to the latest data released by the ZEW on Tuesday.
The U.K. payrolls expanded i2.9% or 847,000 in July from a year ago and rose 0.2% or 73,000 from June, the ONS said Tuesday.
The median monthly pay increased 6.6% from a year ago and rose 13.4% from February 2020 or just before the onset of the Covid-19 pandemic.
The employment data are preliminary and are expected to be revised.
The latest data employment data indicated that the wage gains are significantly lagging the inflation and real wages are declining in the U.K.
The DAX index increased 0.7% to 13,910.12, the CAC-40 index rose 0.4% to 6,592.58, and the FTSE 100 index advanced 0.4% to 7,536.06.
Philips NV rose 2% to 19.89 euros after the Dutch company announced the CEO succession.
Pandora AS declined 6.2% to 501.20 Danish Krone after the costume jewelry company said second quarter operating profit declined on higher costs.
Revenues in the quarter increased 3% to 5.65 billion Danish Krone and operating profit declined to 1.25 billion from 1.3 billion Danish Krone.
U.S. sales declined 1.2% in the quarter and China sales were impacted by the ongoing Covid-19 lockdowns affecting organic sales by 4 percentage points from 2021 and 7 percentage points from 2019.
Net income in the period declined to 934 million from 992 million Danish Krone.
The company retained its revenue growth outlook for the year between 4% and 6% and operating margin in the range of 25% and 25.5%.
Ted Baker increased 17% to 108.80 pence after the fashion retailer agreed to an acquisition offer of 211 million pounds from the parent of Reebok, Juicy Couture, and David Beckham Authentic Brands Group.
Delivery Hero SE increased 5.4% to 52.68 euros after the German-food delivery company reiterated its full-year outlook released in July.
Mondi Group declined 2.2% to 1,636 pence after the packaging company agreed to acquire the Duino paper plant from Burgo Group of Italy for 40 million euros.
BHP Group soared 5.3% to 2,349.74 after the mining giant reported record quarterly results in 11 years and said it plans to return a record amount of cash to shareholders.
Net income in the fiscal year 2022 ending in June increased 173% to $30 billion and earnings per share shot up to $6.10 from $2.23 a year ago.
The Anglo-American mining giant announced a final dividend of $1.75 a share or $8.9 billion, bringing total cash dividends for the full-year to a record $3.25 per share or 77% payout ratio.
The annual profit included an exceptional after-tax gain of $7.1 billion reflects a net gain on merger of BHP
- Scott Peters
- 16 Aug, 2022
- New York City
Walmart Inc increased 6.2% to $140.81 after the retailer reported better-than-expected revenues and earnings in the second and also lowered its decline in annual earnings than previously expected.
Total revenues in the second quarter increased 8.4% to $152.9 billion and net income rose 20.4% to $5.2 billion from $4.3 billion a year ago.
Number of transactions, excluding fuel sales, increased 1% at the U.S. locations and average ticker size rose 5.5% from a year ago.
Diluted earnings per share increased $1.88 from $1.52 a year ago.
Comparable sales, excluding fuel, increased 6.5% at the U.S. Walmart location and surged 9.5% at Sam's Club.
In the quarter, Sam's Club transactions increased 9.8% but average ticket size decreased 0.2%. from a year ago.
The retailer said full-year total sales are expected to rise 4.5% and the U.S. sales, excluding fuel, are estimated to increase 4% and in the second-half expand 3%.
- Scott Peters
- 16 Aug, 2022
- New York City
Home Depot Inc added 5.7% to $332.56 after the home improvement retailer said second quarter sales rose 6.5% to $43.8 billion.
Net income in the quarter rose to $5.2 billion or $5.05 a diluted share compared to $4.8 billion or $4.53 a diluted share a year ago.
U.S. comparable sales increased 5.4% in the quarter and customer transactions declined 3% to 467.4 million but the average ticket size rose 9.1% to $90.02.
The retailer reaffirmed its total and same store sales guidance for the fiscal year 2022 to 3.0% and diluted earnings per share to grow in mid-single digits percentage.