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The Future Looks Bright for EVs

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EV Stock Market

In 2019, the global EV market was valued at $162 billion. This figure is expected to reach $803 billion by 2027. The IMF forecasts that global economy will expand by 5.4% next year. But global EV sales are expected to increase 36% year over year in 2021. This optimism also contributed to the skyrocketing of Tesla’s (NASDAQ:TSLA) stock price which is up 263% on a year-to-date basis. But while many associate EVs with Tesla’s brand, the traditional automakers such as General Motors (NYSE:GM) are also gearing up for the electric race.

One Tesla to rule them all

In June, Tesla’s Model 3 outpaced all other EVs in China, the world’s largest car and EV market. GAC Aion S, Buick Velite 6, BYD Qin Pro EV, Nio’s (NYSE:NIO) NIO ES6 and Bayerische Motoren Werke AG (OTC: BMWYY) BMW 530Le also made it to the list. Interestingly, no other foreign car maker besides Tesla and BMW made it into the top 15 as Volkswagen’s (OTC:VWAGY) Passat PHEV made it to 18th place . With its new biggest factory yet that will be built in the ecological paradise of Austin, Texas, Tesla will have even more room to grow!

General Motors is going electric full speed

No matter how big Tesla gets, it still doesn’t have the history of traditional automakers such as Detroit’s Big Three that have not given up on the electric race. GM plans to invest $20 billion in EVs through 2025. But besides selling eight times more vehicles last year, General Motors has a tremendous advantage over Tesla when it comes to production, size, infrastructure and resources. If it plays its cards right, GM should be able to play the long game.

But although it beats Tesla as well as Nikola (NASDAQ:NKLA) and Nio in ‘traditional’ metrics, it doesn’t have their status of a market disruptor. But instead of trying to compete in EV branding, GM simply needs to focus on its strengths and innovate. In January, the company announced its first all-EV plant, a $2.2 billion worth investment.

GM is a dinosaur and a relic of the internal-combustion era but it has a plan in place to leverage its resources, scale and experience so it can maintain its status in the next generation of the auto industry.

Volkswagen

Only last week, The Volkswagen ID.3 EV briefly became VW’s top-selling retail car in Germany. This is only one year after the world’s largest car maker started taking deposits for its first electric model. The German giant is also strengthening its efforts in China to take advantage after Beijing’s subsidy cuts. EV production will be at the forefront of its post-pandemic strategy in China as already in May it announced it will pump €2 billion euros to get a stake two Chinese EV players.

Back home, Germany recently doubled its subsidy for electric vehicles. EVs are central to its stimulus package that amounts to €130bn and aims to help the economy recover from the harm caused by the pandemic. This kind of support can only boost the giant carmaker’s effort to take on Tesla.

Industry disruptors are not necessarily big

Franchise Holdings International’s subsidy Worksport (OTC:FNHI) will enhance the world will solar-powered pickup truck tonneau covers. The company recently announced it completed a move to a larger facility in China. Besides more factory space and room for additional growth, Worksport also gained better access to materials and major transportation lines. In addition, this Chinese facility has nearly completed a project that was initiated in the last quarter of the fiscal 2019. This improvement will enhance the design and revamp both current as well as newest offerings.

Its three new technologically advanced light truck tonneau covers will soon debut in the U.S. And we know what the country’s most popular vehicle is as Ford’s (NYSE:F) F-150 has been the best-selling truck and vehicle for more than 40 years! An electric version of the legendary F-150 will also be brought to life. The complex yet affordable technology that Worksport will bring to the table can only further speed up electrification.

Outlook

Forecasts are difficult to make amid the current uncertainty. The potential impact of a second wave of COVID-19 that could manifest itself in the fall is forcing many companies to withdraw their guidance or at least be cautious in their forecasts. The second wave could be detrimental for the auto industry. Although EVs would be impacted, their development would only be slowed down as without the slightest doubt – the future is electric!

This article is not a press release and is contributed by a verified independent journalist for IAMNewswire. It should not be construed as investment advice at any time please read the full disclosure . IAM Newswire does not hold any position in the mentioned companies. Press Releases – If you are looking for full Press release distribution contact: press@iamnewswire.com Contributors – IAM Newswire accepts pitches. If you’re interested in becoming an IAM journalist contact: contributors@iamnewswire.com

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BenzingaEditorial

Weekly Retail Recap

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This week has brought a bunch of retail earnings reports, showing that specialty stores are on their way back to health.

Urban Outfitters shows strength ahead of holiday season

Urban Outfitters (NYSE: URBN) reported its quarterly profits rose 38 percent as strength of its brands combined with reduced operating expenses drove growth. Stock climbed as earnings reached a record despite the pandemic. The retailers managed to earn $77 million, or a record 78 cents a share, even though revenue fell 1.8% YoY to $970 million, exceeding Wall Street expectations for both EPS of 45 cents and revenue of $931.5 million.

Burlington Stores tops Q3 estimates but warns on weak start to Q4

While sales were challenged due to a weak August which saw deficient inventory levels and delayed back to school purchases, Burlington Stores (NYSE: BURL) saw comparable store sales trends improve significantly throughout the other two months of the quarter. The company did not provide any formal guidance, but revealed that the undergoing quarter has gotten off to a weak start.

Dick’s Sporting Goods came out with solid earnings and big news

Dick’s Sporting Goods (NYSE: DKS) reported solid earnings Tuesday, with sales at stores open for at least one year growing 23.2% over last quarter. But its major news was that the CEO Ed Stack is stepping down after 36 years in which he transformed his family’s small business into a national presence, took the company public and enacted a strong stance on the US gun debate. The current president Lauren Hobart will be promoted to this role on February 1, and by doing so, she will become company’s first female chief executive.

Nordstrom’s turnaround is real

The iconic fashion retailer reported better than expected third-quarter results. Nordstrom (NYSE: JWN) delivered the quarterly earnings of $0.22 per share, beating the Zacks Consensus Estimate of $0.01 per share but significantly below last year’s $0.81 per share. This has been a hard year for the retailer who saw its shares lose about 42.7% since the beginning of the year while the S&P 500 gained approximately 10.7%.  But after being crushed by the pandemic, Nordstrom now managed to crush Q3 earnings estimates, proving that it is already on the road back to health. COVID-19 gave a severe blow to the retailer due to its focus on selling dressy apparel for work and social events, resulting in sales sinking more than 40% YoY during the first six of the year. But this month, Nordstrom stock has doubled with growing hopes of upcoming COVID-19 vaccines. Also on a bright note, the company is poised to exceed its cost-cutting goals this year, including substantial and permanent reductions to its overhead costs.

American Eagle Outfitters – Sometimes a Beat Just Isn’t Enough

American Eagle Outfitters (NYSE: AEO) posted quarterly earnings of $0.35 per share exceeding Zacks consensus which looked for the company to post $0.33. However, revenue numbers didn’t fare quite so well as it amounted $1.03 billion for the quarter ended October 2020, missing the Zacks Consensus Estimate by 2.08%. This compares to year-ago revenues of $1.07 billion. The company did not provide any fourth quarter or full year guidance. For Q4, Street analysts forecasted sales declining only 1% this current quarter but profits are expected to drop another 14%, with an overall loss for the year.

Gap fell short

The Gap Inc (NYSE: GPS) shares tumbled as earnings fell short, but the retailer remains optimistic about the holidays.It expects fourth-quarter sales to be about equal to or slightly higher than a year ago as consumers can’t spend on entertainment and travel, the expectation is that this budget will be directed to discretionary goods during the gift giving season. But fiscal third-quarter earnings fell short of estimates as Old Navy and Athleta sales gains did not manage to offset the increased marketing costs aimed at defining core brands and growing market share.

Shares fell more than 10% in after-hours trading, having risen more than 51% since the start of this year, Gap has a market cap of $10 billion. Gap earned $95 million or earnings per share of 25 cents versus the expected $140 millionand 32 cents by Refinitiv data on a revenue of $3.99 billion versus the $3.82 billion expected.

Same-store sales were up as sales were boosted in large part by the company’s digital business, which surged 61% and accounted for 40% of total sales during the quarter. Gap said it added more than 3.4 million new customers online.

Retailers are hoping for a ‘holiday miracle’

It seems that recovery from the pandemic is underway despite a spike in COVID-19 infections across the globe. Arising number of cases could still hamper both sales and traffic in physical stores. Retailers such as Abercrombie & Fitch (NYSE: ANF) and Macy’s (NYSE: M) have cited this threat of temporary store closures. But retailers are hoping that the enthusiasm brought on by the holidays might be strong enough to conquer consumer fears of being infected by actually going shopping.  One thing is certain – in a changing apparel retail environment, the above clothing retailers now have the opportunity to fully demonstrate how vital online shopping really is.

This article is not a press release and is contributed by a verified independent journalist for IAMNewswire. It should not be construed as investment advice at any time please read the full disclosure. IAM Newswire does not hold any position in the mentioned companies. Press Releases – If you are looking for full Press release distribution contact: press@iamnewswire.com Contributors – IAM Newswire accepts pitches. If you’re interested in becoming an IAM journalist contact: contributors@iamnewswire.com

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BenzingaEditorial

A PC Tuesday

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Working and learning from home trends are still on the rise due to the pandemic. Simultaneously, these trends are boosting the revenues of the tech segment, including personal computer makers. The last reported quarter was a good one for Dell Technologies Inc. (NYSE: DELL) and HP Inc. (NYSE: HPQ), since both companies reported better than expected earnings on Tuesday. What is common for the two companies is that they both saw sales increase in their consumer segments, especially laptops. Having in mind that we are all spending more time at home, having a personal computer, the one which is not shared with the others, has become a must.

Dell’s quarterly earnings

Dell reported its results for the third fiscal quarter of 2021, stating that it achieved non-GAAP earnings of $2.03 per share, 46% higher than the Zacks Consensus Estimate. This figure is also 16% higher when looked at year over year. Non-GAAP revenues were $23.52 billion, which is 3% higher YoY, with Zacks Consensus Estimates of revenues being 7.3% lower than the achieved ones. Revenues from products stayed stable while service revenues increased by 10%. However, there are some business segments with lower revenues compared to the previous year. Servers and networking revenues dropped by 2%, while storage revenues fell 7%. Commercial revenues grew 5% and consumer revenues increased 14%. It is important to say that the company hit an all-time high sale in client devices, by generating $12.3 million. Non-GAAP gross profit stayed flat at %7.77 billion (33% gross marking), while adjusted EBITDA increased to $3.23 billion (14% EBITDA margin). Dell increased its cash and cash equivalent position from $11.22 billion to $11.30 billion, with an undrawn capacity of $5.9 billion. The debt was reduced to $49.86 billion from $54.5 billion.

HPQ’s quarterly earnings

Like Dell, HP notebook sales jumped during the fourth fiscal quarter. The company reported fiscal fourth-quarter earnings which ended on October 31st, beating the estimates and providing some optimistic forecasts. Reported revenues are $15.3 billion, while the analysts’ expectations were $14.7 billion. Revenues from the company’s biggest segment, personal systems, remained flat. However, within the segment, there was a drop in demand for desktops and workstations, while the demand for notebooks rose 18% to $7.41 billion. Adjusted earnings were 62 cents per share, exceeding the 52 cents expected by the analysts.

Outlook
Gartner rankings of PC vendors include HP and Dell in the top three positions, just after Lenovo (OTC: LNVGY). HP is at the second position, with Dell following suit. This sequence has been like this for a while, meaning that sales of PCs are growing overall and that PC sales will probably continue to benefit from higher demand caused by the COVID-19 pandemic, despite setbacks such as occasional component shortages.

This article is not a press release and is contributed by a verified independent journalist for IAMNewswire. It should not be construed as investment advice at any time please read the full disclosure. IAM Newswire does not hold any position in the mentioned companies. Press Releases – If you are looking for full Press release distribution contact: press@iamnewswire.com Contributors – IAM Newswire accepts pitches. If you’re interested in becoming an IAM journalist contact: contributors@iamnewswire.com

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December Will Be the Big IPO Finale of 2020

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Mid Cap Stocks

We are getting close to the end of 2020. It’s been a year like no other, the year where everything was in the shade of a global pandemic. How did that affect the companies’ decisions to go public? For a majority of business, it posed a serious obstacle, maybe even the one which cannot be bypassed as companies are fighting for their existence. But some lucky ones such as tech companies were only boosted by it. One market that saw extraordinary activity was the IPO market, with the number of companies going public so far in 2020 nearly double that of the same time last year.

We already talked about last week’s six new IPOs, Sotera Health Company (NASDAQ: SHC), Olema Pharmaceuticals (NASDAQ: OLMA), Yatsen Holding Limited (NYSE: YSG), Maravai LifeSciences Holdings, Inc. (NASDAQ: MRVI), NeoGames S.A. (NASDAQ: NGMS), and Telos Corporation (NASDAQ: TLS). Last week also brought us 15 special purpose acquisition companies (SPACs) which managed to raise $2.5 billion. The activity is set to continue in December, with several high-profile companies filing to make their public debut.

Roblox

Roblox (NYSE: RBLX), an online kid-focused gaming platform, which achieved some epic gains in 2020, is one of the beneficiaries of COVID-19. In-game currency, which is bought with real money, became a way for some folks to amuse their children for a while and either get some peace and quiet or manage to complete their own work. Although it is expected that the growth in 2021 will not be as sharp as in 2020, this user-generated content platform turned out to be a great business. Revenues grew from $312 million in 2018, to $488 million in 2019. The end of September saw revenues of $589 million, which is 68% higher than the same period last year.

Affirm

Affirm (NASDAQ: AFRM) is a fintech company founded by PayPal (NASDAQ: PYPL) co-founder Max Levchin in 2012 alongside Nathan Gettings, Jeffrey Kaditz and Alex Rampell. This e-commerce platform offers consumers to make purchases with interest-free installments, as well as to manage payments or open high-yield savings accounts. Affirm’s products are focused on both consumers and merchants. Consumers can make payments with no deferred interest, hidden fees, or penalties, as well as interest loans with a fixed installment agreed upfront that never compounds. Merchants will get an opportunity to promote their products and services, by getting more and more information to prepare more tailor-made offers. In 2019, the company recorded net revenues of $264.4 million. By the of June 2020, revenues increased to $509.5 million, or 92.7% comparing to the whole 2019. This trend continued in the period from June to September.

Wish

Affirm’s IPO was well-timed and the same could be said for Wish (NASDAQ: WISH), an e-commerce platform selling products from Asia at the lowest possible prices. Even though the company hit some problems regarding its supply chain at the beginning of the pandemic, the timing for its IPO is good. The parent company ContextLogic thinks that way, as it filed a preliminary S-1 to be listed in December. The business model that brings an affordable and entertaining mobile shopping experience to billions of consumers around the world turned out to be a good idea, as the company reported revenues of $1.9 billion in 2019, which is 10% more than 2018 when the company grew 57%. First nine months of 2020 brought the same impressive growth of 32%, with revenues of $1.75 billion. The company also came out with a very strong balance sheet with $1.1 billion in cash and short investments.

The list goes on…

The list of high-profile companies does not end here. We can truly expect a very busy period for initial public offerings. The list includes Airbnb, the home-sharing platform, DoorDash, the food delivery company, as well as some other big IPOs that could be launched by the end of the year, like Churchill Capital Corp V, Far Peak Acquisition and Spartan Acquisition II planned through a SPAC.

This article is not a press release and is contributed by a verified independent journalist for IAMNewswire. It should not be construed as investment advice at any time please read the full disclosure . IAM Newswire does not hold any position in the mentioned companies. Press Releases – If you are looking for full Press release distribution contact: press@iamnewswire.com Contributors – IAM Newswire accepts pitches. If you’re interested in becoming an IAM journalist contact: contributors@iamnewswire.com

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