Connect with us

BenzingaEditorial

Good Riddance to September

Published

on

Tech Company News

September lived up to its reputation for inflicting pain on stock investors. It had a tech meltdown on its repertoire, dragging all three indexes to their worst monthly declines since March. Even with the Dow Jones rising on Wednesday, the blue-chip benchmark wrapped up September with a drop of 2.3%. S&P 500 fell even more 3.9% and the tech heavy NASDAQ suffered the most painful drop of 4.9%.

September also showed signs of economic recovery

In China, the measures that the government implemented boosted factory activity and helped push sentiment in the service sector to its highest level to its seven-year high. Global demand started rebounding as on Wednesday, National Bureau of Statistics reported that China’s official manufacturing purchasing managers index rose to 51.5 in September as a rebound in global demand. This is higher than the forecasted 51.2 and August’s 51.0.

US – increased consumer optimism despite uncertainty and rising infections

Six months into the pandemic, infections are rising and the handling of the pandemic as well as the economic recovery are major parts of the presidential contest between Donald Trump and Joe Biden. But despite many nuances of uncertainty, Americans are beginning to feel much better about the economic recovery. The Conference Board reported on Tuesday that consumer confidence soared to its highest level since the virus swept across the country.

This is much needed good news because about two-thirds of the US economy rely on consumer spending, so how people feel about this recovery is an important piece of the rebound puzzle. However, joblessness will continue to hold back the recovery because workers struggling to make ends meet won’t have the money to splurge.

Disney furlough

On Tuesday, The Walt Disney Company (NYSE: DIS) announced it has laid off 28,000 employees. The jobs lost were mostly at its US theme parks at Florida and California as there is still no light at the end of the pandemic tunnel. Although attendance at Florida’s Disney World was weaker than anticipated, California did not even allow the reopening of Disneyland. Then again, there are no fireworks, there are fewer dining options and there are no hugs from Disney’s favorite characters. If you include the obligatory mask-wear, it’s not entirely a magical experience visitors come for.

Broken engagement

LVMH (OTC: LVMUY) decided not to marry Tiffany & Co (NYSE: TIF) afterall. But, this is not the end of the drama as the European conglomerate filed a countersuit against Tiffany this week to walk away from the $16.2 billion takeover that would have been the biggest ever in the luxury industry. LVMH accused Tiffany of financial mismanagement during the coronavirus pandemic.

Nikola & GM & Nikola allegations

On September 8th, it seemed General Motors (NYSE: GM) finally got its EV ticket with a $2 billion partnership with Nikola (NASDAQ: NKLA). However, the deal did not close on September 30th as allegations against Nikola’s founder surfaced, causing its stock to plummet. This was a bad month for the electric truck start-up as its founder has been accused of fraud as well as sexual misconduct.

Nikola also announced it is indefinitely postponing Nikola World scheduled for December where it was planning to reveal the Badger what many believed will be able to compete against Tesla’s (NASDAQ: TSLA) Cybertruck. Nikola’s future as well as that of the partnership remain unclear. The talks between GM and Nikola could drag on until December 3rd, which is until both companies have the right to withdraw.

Uber Wins London Battle

Uber (NYSE: UBER) has been spared from London ban despite historical failings. The judge found that although Uber does not have a perfect record, but it has been an improving picture. However, it’s early to celebrate victory as the new licence will run for 18 months and comes with a number of conditions, allowing TFL to closely monitor Uber’s adherence to the regulations.

The good news

12 companies have delivered better than expected third-quarter results. Eleven of them, including FedEx Corporation (NYSE: FDX), Lennar Corporation (NYSE: LEN), AutoZone (NYSE: AZO) and Nike (NYSE: NKE) have seen their fourth-quarter estimates raised after their reports by the greatest amount we have measured in a decade. These companies did a great job in replying to altered consumer behavior and adapting to a new normal.

For example, Adobe Sign e-signature product grew enterprise bookings by 200% year-over-year in its fiscal third quarter which ended August 28. Although the company’s $3.23 billion in sales represented a 14% jump from last year, and the highest Q3 revenue in history, it wasn’t a surprise for Adobe to perform so well consider its strong revenue growth was a trend long before the pandemic that only accelerated digital adoption. It achieved record-setting revenue also in 2018 and 2019 with a 24% YoY increase.

It paid off to switch from one-time software license sale to a recurring software-as-a-service subscription revenue model. According to estimates, global spending on digital transformation will reach $1.3 trillion in 2020 and skyrocket to $2.3 trillion by 2023. That growth translates to increased sales for Adobe.

October Outlook

Investors have high expectations for October earnings reports. That round will begin on October 13 with JPMorgan Chase & Co (NYSE: JPM). September has been a rough month and although there is a long road to recovery, forecasts for October do seem brighter.

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

BenzingaEditorial

Plugging Into the Future

Published

on

Tesla Electric Vehicles

BNEF predicts that by 2040 EV sales will rise to nearly 60% of the global auto market. That is quite a difference compared to 2010, when annual sales were close to zero. With consumer becoming more aware and conscious, along with favorable market forces that are gaining momentum, EVs are quickly becoming the future of the automotive industry with many EV companies showing massive growth potential.

e-tractors

Ideanomics (NASDAQ: IDEX). has acquired 15% of California-based Solectrac, Inc. for $1.3 million, its very first US-based OEM, Solectrac develops, assembles and distributes 100% battery-powered electric tractors for agriculture and utility operations. With this investment in Solectrac, Ideanomics expands its global footprint in the EV industry through specialty commercial vehicles. Moreover, Ideanomics gained a seat on Solectrac’s Board of Directors. This opportunity will give Ideanmoics access to the global agricultural tractor market that is poised for rapid growth, although currently valued at $75 billion. The time has come to say goodbye to diesel tractors.

Solar powered EVs

Besides recently forming an agreement with Atlis Motor Vehicles, Worksport (OTC: WKSP) has announced today to engage Thermal Technology Services Canada to test the Company’s groundbreaking TerraVis™ solar panel technology and increase its efficiency. Increases in product efficiency of even a few per cent can make all the difference when it comes to the performance of an electric vehicle. Each additional mile counts and Worksport is set to deliver the most advanced product with solar technology, from which the technologically advanced and eagerly-anticipated for Atlis XT electric pickup truck can greatly benefit.

Traditional automakers are not wasting any time

General Motors (NYSE: GM) revived the Hummer for the 2022 GMC Hummer EV, a fully electric truck that is expected to arrive in dealership next year. Last week, GM unveiled its “Factory Zero” as it gave a new life to its Detroit-Hamtramck assembly plant. The new GMC Hummer EV electric truck will be built in this all-electric factory, accompanied by the Cruise Origin, a self-driving EV designed by GM and Honda (NYSE: HMC). Last month, Ford (NYSE: F) also announced plans for a new factory at its large Rouge site in Dearborn, Michigan, that will build it’s the all-electric version of its legendary F-150 pickups.

New entrants are upping their game

Northeast Ohio-based Lordstown Motors (NASDAQ: RIDE), which purchased GM’s former Lordstown Assembly Complex and DiamondPeak Holdings Corp. (NASDAQ: DHPC), a special purpose acquisition company, completed a merger that makes the EV startup a publicly traded company, effective Monday. The deal gives Lordstown the financing it needs to start production of its electric Endurance truck. It aims to deliver its truck by next September, the same time Rivian Automotive Inc., Tesla Inc.(NASDAQ: TSLA) and General Motors Co. plan to launch their own electric truck candidates.

Outlook

On Thursday, during the last presidential debate, former Vice President Joe Biden pledged to shift the U.S. economy away from oil. This goal is impossible to reach without a wider EV adoption as road transport accounted for almost 70% of America’s oil consumption in 2019. Therefore, market forces and green government policies can only accelerate the EV revolution, both in the United States and around the world, with Europe already being well on that path. A cleaner tomorrow where we will no longer have to choose between performance, economy and environmental sustainability is well underway.

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

Continue Reading

BenzingaEditorial

Solar Energy Is on Track To Become the New Energy King

Published

on

Solar Stocks and Corona Virus

When COVID-19 started its relentless march across the globe in March, there was some concern that it would put the solar industry to a halt. This fear was derived from the fact that residential solar sales are usually sold door-to-door as well as plant closures and increasing pandemic-related costs. But this scenario did not play out. In fact, the construction industry has been booming this year.

Innovation

The pandemic has also brought about some innovations that were a long time coming for solar energy. Residential solar companies were forced to adapt their sales to a digital framework. SunPower (NASDAQ:SPWR) is one of the leaders in this digital-first approach, but Tesla (NASDAQ:TSLA) has also caught this wave. Moreover, when it reported its earnings last week, the company revealed it is aiming for its solar business to be just as strong as its main star, the EV business. Elon Musk announced that Tesla’s next ‘killer product’ is its Solar Roof, and that everyone will see why next year. But even Sunrun (NASDAQ:RUN) is adapting to a new normal with fewer physical touchpoints so competition will be intense.

Improved profitability

At the end of the day, the reason solar stocks are up this year is the improved financial performance. Canadian Solar (NASDAQ:CSIQ), JinkoSolar (NYSE:JKS), SolarEdge (NASDAQ:SEDG), and Enphase Energy (NASDAQ:ENPH), four of the biggest equipment suppliers in the industry have remained strong during the pandemic, with some companies also seeing margins increase.

But this piece of good news is a result of the industry focusing more on specializing rather than vertically integrating. For example, SunPower has spun off its development business, inverter manufacturing, and its solar manufacturing arm which led it to better financial results and better margins almost across the board.

Politics

Considering that Joe Biden has taken a clear polling lead over Donald Trump, the boost of solar stocks is not a surprise. Biden’s strategy is much more focused on clean energy than Trump’s, despite not being supportive of the “Green New Deal”.  The overall perception is that Biden will be good for the industry.

Affordability

Solar power is already the cheapest source of electricity in some parts of the world, according to a new report released on October 13th by the International Energy Agency (IEA). This was greatly enabled by governmental policies in more than 130 countries that aim to encourage the rise of renewables by reducing the cost of building new solar installations.

Outlook

As solar technology continues to improve and innovation continues to drive those costs down, solar is on track to become “the new king of electricity supply”. With global efforts to put climate change under control, the solar industry is expected to dominate over the next decade. The EU alone has set a goal to source 32 percent of its energy from renewables by 2030, therefore, the forecast for solar is sunny.

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

Continue Reading

BenzingaEditorial

Procter& Gamble Benefits From the Cleaning Boom

Published

on

Emerging Companies

On Tuesday, Procter & Gamble (NYSE: PG) managed to beat estimates and raised forecast amid strong demand for its household products. Its shares rose 2% in morning trading.

Key figures

Fiscal first-quarter sales rose 9% as the pandemic fuelled higher demand for cleaning and laundry products, exceeding the prior quarter’s 6% increase. Net sales amounted to $19.32 billion, topping expectations of $18.38 billion. Organic revenue, which strips out the impact of acquisitions, divestitures and foreign currency, also rose 9% in the quarter. This sales boost was enabled by stronger demand in P&G’s largest market, North America.

Sales growth resulted in a net income of $4.28 billion, or $1.63 per share. Not only is this figure higher than Refinitiv’s average of $1.42 per share, but it is also an improvement from last year’s $3.59 billion, or $1.36 per share, a year earlier.

Improved Forecast

Supported by these strong quarter results, P&G also raised its outlook for fiscal 2021. Overall sales growth is now expected in the range between 3% to 4%, up from its prior forecast of 1% to 3%. As for organic revenue, the forecasted range also improved from 2% to 4% to a new range between 4% and 5%. The outlook for its core earnings per share growth has also improved from prior forecast of 3% to 7%. While the early retirement of debt will reduce its net income up to 20 cents a share this fiscal year, core earnings per share are still forecasted to grow between 5% to 8%. As for the impact of after-tax foreign exchange impacts and freight costs, they are estimated to impact earnings at approximately $375 million.

The “antiseptic” cleaning boom

Although the laundry care and healthcare divisions were standout performers as consumers prioritized home cleaning spending, all of P&G’s five business segments enjoyed organic sales growth. Moreover, U.S. consumers did not opt for cheaper brands which was expected to the absence of a new stimulus package.

Fabric and home care, which includes Tide, saw the highest jump. Organic sales rose 14% in the quarter. The home care segment alone saw organic sales soar 30% due to a boost in demand for home cleaning products, like Mr. Clean.

Health care, which includes Oral-B,s saw a double-digit organic sales growth as more consumers bought its digestive and wellness products.

Its beauty segment saw organic sales growth of 7% with the launch of Safeguard hand soap and hand sanitizer as well as new products from Olay that lifted North American sales for skin and personal care. It’s already a known fact that skincare became the new “lipstick index” during the COVID-19 pandemic.

Organic sales for its grooming business rose 6% in the quarter. However, Gillette and Venus brands saw flat organic sales as men don’t appear to be shaving as much during the pandemic. But women’s razors and blades rose by single digits.

The company’s baby, health and family care segment reported organic sales growth of 4%, including Pampers diapers, paper towels and toilet paper.

Outlook

It didn’t take long for Procter & Gamble to leave its conservative fiscal 2021 outlook behind. As consumers spend more time in their households, watching TV and engaging with their social media profiles, P&G is putting more money into advertising to put its brands front and center. The overall image is that P&G’s strong results and growth were enabled by increase in sales volumes, but average prices also rose. P&G did a great job in catching the cleaning boom wave which is why the company expects only a modest slowdown from pandemic-influenced growth rates that result in spiking sales over the recent months.

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

Continue Reading
Advertisement

Submit an Article

Send us your details and the subject of your article and an IAM editor will be in touch with you shortly

Trending