Scott Peters
19 Apr, 2022
New York City
Netflix said first-quarter revenues increased 9.8% to $7.8 billion, net income declined 20% to $1.59 billion, and earnings per share fell to $3.53 from $3.75 a year ago. Operating margin declined to 25.1% from 27.4% and paid streaming membership increased 6.7% to 221.64 million. In the quarter, the streaming service provider lost 0.2 million subscribers. For the second quarter, the company guided slower growth of 9.7% in revenues, nearly flat income from a year ago $1.35 billion or $3 a share and membership decline of 5% or 2 million to 219.6 million.
Barry Adams
19 Apr, 2022
New York City
The S&P 500 index and Nasdaq Composite gained 1.5% and 2% respectively. The benchmark indexes opened higher and steadily climbed higher ahead of earnings from tech bellwethers. Crude oil price fell 5% and natural gas price dropped 8% fueling investor optimism. However, 10-year U.S. Treasury bond yield rose to 2.938%. Airlines stocks and tech stocks led the gainers.
Brian Turner
19 Apr, 2022
New York City
Seasonally adjusted housing starts in March rose 0.3% to an annual rate of 1.79 million units from the revised February estimate of 1.788 million and 3.9% higher from the 1.727 million rate a year ago. Single-family housing starts fell to a rate of 1.2 million units, a decline of 1.7% from the revised rate of 1.221 million rate in the previous month, Housing completions in the month declined 4.5% to a rate of 1.3 million from February revised rate of 1.33 million and plunged 13% from a year ago. Single-family home completions fell 6.4% to a rate of 1 million from the February revised rate.
Scott Peters
19 Apr, 2022
New York City
Johnson & Johnson said first-quarter 2022 revenues increased 5% to $23.4 billion, net income declined 17% to $5.14 billion, and earnings per share by the same amount to $1.93 from $2.32 a share a year ago. Sales in the U.S. rose 2.7% to $11.4 billion and international sales jumped 7.2% to $12 billion. The pharmaceutical maker guided full-year 2022 revenue growth in the range between 3.8% to 4.8% from the previous guidance range between 5% to 6% and also suspended its guidance on Covid-19 vaccine sales.
Scott Peters
19 Apr, 2022
New York City
The Travelers Companies, Inc reported first quarter 2022 revenues increased 6% to $8.8 billion, net income soared 39% to $1.02 billion, and earnings per share surged 45% to $4.15 from $2.87 a year ago. Core income jumped 48% to $1.03 billion on lower catastrophe losses partially offset by lower net investment income and lower favorable net reserves in the year ago. Book value per share declined 5% from a year ago to $106.40. Net written premiums in the quarter increased 11% to record $8.4 billion.
Scott Peters
19 Apr, 2022
New York City
Lockheed Martin reported first quarter 2022 revenues declined 8% to $15 billion, net income fell 5.6% to $1.7 billion, and earnings per share dropped to $6.44 from $6.56 a year ago. The aerospace and defense contractor guided 2022 free cash flow of at least $6 billion. In the quarter, the company spent $2 billion to repurchase 4.7 million shares and paid $767 million in cash dividends.
Scott Peters
19 Apr, 2022
New York City
Hasbro Inc said first-quarter 2022 revenue increased 4% to $1.16 billion, net income plunged 47% to $61 million, and earnings per share fell to 44 cents from 84 cents a year ago. Revenues in the Consumer Products segment rose 3%, in the Wizards of the Coast and Digital Gaming segment rose 9%, and in the Entertainment segment gained 4%. The toymaker guided 2022 revenue growth in low-single digit and operating cash flow in the range of $700 million to $800 million.
Barry Adams
19 Apr, 2022
New York City
Johnson & Johnson said first-quarter revenues rose 5% from a year ago, below the market expectations, but earnings declined 17% to $1.93 a share, above the market estimate.
Travelers fell 3% after the financial services company said quarterly revenues increased 45% to $4.15 a share.
Lockheed Martin declined 1% after the defense contractor said quarterly revenues declined 8% to $15 billion and reaffirmed 2022 cash flow outlook of $6 billion.
Hasbro gained 4% after the toy maker said revenues rose 4% to $1.2 billion but earnings plunged 47% to $61.2 million.
Barry Adams
19 Apr, 2022
New York City
U.S. indexes opened higher but investors remained focused on the latest earnings and war developments in Europe. Yield of 10-year U.S. Treasury bond advanced to 2.92%, a new 3-year high. Crude oil declined $4 a barrel as demand from China is expected to soften on rising Covid-19 cases. European markets fell more than 1% after Russia launched a new assault on cities in eastern Ukraine.
Barry Adams
19 Apr, 2022
New York City
Blackstone agreed to acquire American Campus Communities for $12.8 billion. The cash offer of $65.47 a share is 14% higher than the last close price of ACC.
The company has been looking for ways to return capital to shareholders after the activist investor controlled Land & Buildings has been urging the Board to sell its assets and buy back stock.
M&A activities in the REIT sector have been fueled by low interest rates and cheap REIT stocks.
In December, Blackstone also acquired Bluerock Residential Growth REIT for $3.6 billion.
Scott Peters
18 Apr, 2022
New York City
J.B. Hunt Transport Services, Inc said first quarter 2022 revenues rose 33% to $3.49 billion, net income increased 67% to $243.3 million, and diluted earnings per share increased to $2.29 from $1.47 a year ago. Revenues for Intermodal division rose 36% to $16 billion, Dedicated Contract Services increased 28% to $741 million, Integrated Capacity Solutions increased 29%, Truckload division soared 77%, and Final Mile Services increased 8% to $218 million.
Barry Adams
18 Apr, 2022
New York City
U.S. stocks lacked direction after 10-year Treasury bond yield inched up to 2.86%, crude oil added a dollar to $107.90 a barrel, and gold inched up 0.3%. Investors focused on a busy week of earnings ahead and are looking for clues how corporations are facing rising costs. Several leading companies including American Express, Travelers, J&J and Verizon are scheduled to release earnings. American Airlines, United Airlines, Alaska Air, CSX, and Union Pacific will provide deeper insights in freight and passenger travel costs.
Brian Turner
18 Apr, 2022
New York City
China's economy expanded at 4.8% in the first quarter from a year ago and rose 1.3% sequentially, according to the National Bureau of Statistics. Fixed assets investment increased 9.3% from a year ago and Shanghai lockdown in March most likely shaved off 0.4% to 0.5% from the GDP growth data. Industrial production growth slowed to 5% from 7.5% increase in two months to February. Retail sales declined 3.5% reversing 6.7% gain in the prior two-month period. National urban unemployment rate increased to 5.8% in March from 5.5% in February.
Scott Peters
18 Apr, 2022
New York City
Synchrony Financial said first quarter 2022 revenues increased 2.3% to $2.16 billion, net income 9% to $932 million, and diluted earnings per share rose 2.3% to $1.77 from a year ago. The company's Board approved a 5% increase in quarterly dividend to 23 cents a share from the third quarter and the incremental share repurchase of $2.8 billion. Average active accounts increased 6% to 70.1 million and new accounts rose 10% to 5.5 million. The credit card lender said purchase volume rose 17% to $40.5 billion and net interest margin increased 182 basis points to 15.8%.
Scott Peters
18 Apr, 2022
New York City
The Charles Schwab Corporation said first quarter 2022 revenues declined 1% to $4.67 billion, net income fell 6% to $1.4 billion, and diluted earnings per share decreased 8% to 67 cents from 73 cents a year ago. Net interest income, about 50% of total revenues, increased 14% and brokerage trading revenues, about 30% of total, fell 21%. Bank deposit account fees dropped 16%.
