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BenzingaEditorial

Last Week’s Summary – an Omen of What Is to Come?

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Global economy corona virus

On Friday, the markets turned jittery as President Donald Trump tested positive for COVID-19. Moreover, concerns about the slow economic recovery were amplified as the 661,000 jobs added in the private sector during September was below August’s level.

But, the IPO space has been hotter than ever with Colorado-based software firm Palantir Technologies (NYSE: PLTR) and task management app Asana Inc (NYSE: ASAN) went public, eliciting a lot of interest from the market community.

Proving its critics wrong yet again, Tesla (NASDAQ: TSLA) said it achieved production and delivery goals for the third quarter, exceeding expectations. After a long lull due to COVID-19, M&A activity seems to be picking up, with Walmart (NYSE: WMT) an agreement with Issa Brothers and TDR Capital to sell its UK unit Asda. According to Mint newspaper, Walmart is also advanced talks to invest up to $25 billion in India-based conglomerate Tata Group’s “super app,” which is set to December or January.

Media reports revealed that Goldman Sachs (NYSE: GS) has agreed to acquire the credit card business of General Motors (NYSE: GM) for $2.5 billion. GM has not finalized its deal with Nikola (NASDAQ: NKLA) on September 30th in the light of allegations. The two companies have until December 3rd to finalize the deal.

The leading global provider of 3D automated metrology solutions coordinate measuring machines Perceptron (NASDAQ:PRCP)’s fourth quarter EPS was in line but managed to beat revenue estimates for its fourth quarter. The company announced it entered into a definite agreement to be acquired by Atlas Copco, a world-leading provider of sustainable productivity solutions headquartered in Stockholm, Sweden.

Uber (NYSE: UBER) won its London battle, giving it an 18 months window to operate in the UK Capital as its progress will be closely monitored by regulatory authorities.

Bed Bath & Beyond (NYSE: BBBY) seems to have resurrected. Last week offered further signs that maybe its CEO Mark Tritton is succeeding in doing what so many of his peers have failed to do – to turn the business around as total quarterly sales that were up 6% YoY, marking the first increase since 2016, while digital sales soared by 89%. Moreover, Bed Bath & Beyond will be offering a same day deliver to take full advantage of the holiday season as it is partnering with Instacart and Target-owned (NYSE: TGT) Shipt.

 

A specialized biopharmaceutical company developing first-in-class medicines based on molecules that modulate the activity of the melanocortin and natriuretic peptide receptor systems Palatin Technologies, Inc. (AMEX:PTN) slipped into a loss during its fourth quarter. Net loss for the fourth quarter ended June 30, 2020 was $(7.3) million. Net loss for the year ended June 30, 2020 was $(22.4) million with further disruptions to business activity expected due to the pandemic.

SINA (NASDAQ:SINA) reported its second quarter and more importantly, revealed it is exiting Wall Street. Owner of the Weibo platform announced it is going private in $2.6 billion deal. Many Chinese companies are opting out of U.S. stock exchanges, following rising tensions between the world’s two largest economies, by considering go-private deals or returning to equity markets closer to home. This delisting could easily be a sign of further turbulence ahead if President Trump turns his threat to delist Chinese stocks into action.

Weibo Corporation (NASDAQ:WB) saw its share price soar 208% in the last half decade, but it is also down 21% year to date. However, its share price jumped 10.4% on September 30th due to the company delivering better-than-expected second-quarter results.

United Natural Foods (NYSE:UNFI) had somewhat of a mystery collapse as the stock plummeted despite Q4 results being much better than expected. It seems that a solid quarterly report wasn’t enough to satisfy investors in the one of the oldest natural food distributors. Despite better than expected earnings and revenue with net income more than triple from last year’s quarter, shares were down 12.4% on Tuesday. Investors might have also reacted to the news that its CEO is retiring next year, or sooner or simply questioning the assumption that the positive trend of food-at-home-consumption will remain with the arrival of a COVID-19 vaccine.

Park City Gr (NASDAQ:PCYG) managed to beat fourth quarter forecasts both in terms of revenue and earnings as it recorded a 25% EPS beat.

Conagra Brands (NYSE : CAG) has beaten analyst estimates both for earnings and revenue. Moreover, the manufacturer and seller of processed and packaged foods showed progress towards its sustainability goals as it will be using plant-based fibers instead of plastic. With this switch, the company will reduce the carbon footprint of manufacturing the bowls is by 50 to 70 percent across selected product lines. The goal is to achieve 100 percent of existing plastic packaging renewable, recyclable or compostable by 2025,

Novagold Resources (NYSE: NG) revealed Q3 results for the period that ended on August 31, 2020, reporting a loss of $12.7 million as due to COVID-19 the assay labs were understaffed and the drill results are coming in slower than expected.

Prolonged closures at Walt Disney’s (NYSE: DIS) California-based theme parks and limited attendance at those that reopened have forced the company to lay off 28,000 employees across its parks, experiences and consumer products division, with about 67% of them being part-time employees. The impact of COVID-19 has been significantly amplified by  California’s unwillingness to lift restrictions that would allow Disneyland to reopen. Dow stock Disney fell nearly 2% in premarket trading as this will be a shot heard across the country with many cities living off the tourism brough in by Disney’s entertainment centers.

Although last week was somewhat light when it comes to earnings as we are waiting for mid-October, it had many important events that could easily be the omen of what is to come. Uncertainty has become our everyday norm with further turbulence on the horizon.

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

News From the EV World

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EV news keeps on coming. After leading companies like Tesla (NASDAQ:TSLA), General Motors (NYSE:GM) and NIO (NASDAQ:NIO) now Subaru Corporation (OTC: FUJHY) has finally hopped on the EV train by officially releasing a few of teaser images of its first electric car that will be powered by the platform it has been co-developing with fellow Japanese automaker Toyota Motors (NYSE: TM). Renown tonneau cover designer and manufacturer that brought its revolutionary solar fusion TerraVis to the EV table, Worksport Ltd (OTC: WKSP) has announced this morning it entered pre-production and testing phase with TerraVis COR mobile energy storage system with which it’ll tap into a wider consumer market.

Subaru’s first EV

No pricing or specs have been released but the Solterra EV will be coming to the US, Canada, Europe, and Japan in 2022.  Like its automotive peers, the Japanese automaker will use its first electric vehicle as a clean slate to refresh the way it designs the interior of its vehicles. Solterra was created from two Latin words, “Sol” standing for the ‘Sun’ and “Terra” standing for the ‘Earth’ to represent the automaker’s commitment to deliver traditional SUV capabilities in a way that is in harmony with the environment, which does sound refreshingly harmonic for corporate naming conventions. Like other vehicles that will be built on this platform which Toyota calls the e-TNGA and Subaru calls e-Subaru, Subaru’s first EV will benefit from its expertise in creating good all-wheel drive systems and Toyota’s mastery in developing battery technology for its hybrids. Solterra certainly seems more pleasing to the eyes than “BZ4X,” the first SUV Toyota will build on this shared platform that is also due out next year.

Worksport’s TerraVis COR has entered the production prototype phase

After signing deals with Atlis Motor Vehicles and Hercules Electric Vehicles to configure its groundbreaking TerraVis™ system for their upcoming electric pickups and the company’s most recent news about the expansion of its manufacturing capacity and Private Label customer base, Worksport reported it has entered the pre-production and testing phase of its mobile energy storage system, TerraVis COR.

In the coming weeks, the company will soon launch a TerraVis™ website to provide more information on this revolutionary line. TerraVis COR™’s first pre-production prototype is expected to be ready during the early stages of the third quarter. It will be fully operational and is expected to reflect the final product that will be commercially available by the end of the year. However, extensive testing is required to receive certifications for it to become a commercially viable global product. This independent mobile energy system is the ideal integration of user-friendly simplicity with clever and multi-dimensional functionality. It is an extension to its TerraVis line that will allow the company to go beyond pickup trucks and tap into a wider consumer market, appealing to any everyday consumer who needs mobile power- and that is pretty much everyone.

Worksport is also in in the process of getting its uniquely designed sold through several large, automotive-focused, online retailers to expand its footprint nationally.  Simultaneously, discussions are being held with various distribution channels to get the company’s innovative branded products in many brick-and-mortar stores in the coming year as the company is working diligently towards becoming a household brand known for its unique offering of affordable leading-edge technology that enhances everyday lives.

New EV models are coming, the world’s first electric pickup will see the light of the day this year with exciting technology developments also on the way as after all, EVs are more about software than hardware.

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

Ride-hailing Seems To Be Making a Comeback But Drivers Seem Hesitant

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Last week, Uber Technologies Inc (NYSE: UBER) and Lyft Inc (NASDAQ: LYFT) showed they are seeing improvement in ride hailing that was strangled by the COVID-19 pandemic.

Uber was saved by its food delivery business

Uber’s first-quarter results come after it announced March was the best month in the company’s nearly 12-year history, as its mobility business reported the most bookings since the start of the pandemic and delivery demand exceeded driver supply.

Q1 figures

Revenue for the quarter came in at $2.9 billion which was below analysts’ estimates. Uber had to deal with a $600 million UK charge, which is merely a glimpse of the costs it could face if it were it is forced to treat its US gig workers as employees. This time, it had to settle with its more than 70,000 UK drivers. During the first quarter, Uber had 3.5 million active drivers and food-delivery workers on its platform, the majority of whom work in the United States.

Excluding that charge, Uber reported $3.5 billion in revenue, up 8 per cent YoY. As has been the case for most of the pandemic, its delivery division accounted for the bulk of sales, at $1.7 billion, a 230% increase from the first quarter of 2020. A one-off, $1.6 billion windfall from the sale of its self-driving division helped the company come within touching distance of a profitable quarter, recording a net loss of $108 million, compared with $2.9 billion in the same quarter a year ago.

Uber recorded $19.5 billion in gross bookings which is the total value of all transactions, marking a 24 per centincrease compared to the same period last year which was marked by the early days of the pandemic.

Uber’s preferred measure of performance and the one it promised to be profitable on by the end of the year, adjusted EBITDA, also came in ahead of analysts’ expectations, with a $359 million loss, 41 per cent better than a year ago.  Narrowing losses by nearly $100 million from the previous quarter, it is important to note this figure excludes one-time costs such as stock-based compensation.

Ride-hailing improvements

In April, Uber’s gross ride-share bookings in the US increased 5 per cent month on month. Also, executives shared data from two of its largest markets for rides and delivery, namely Sydney and New York, that revealed delivery gross bookings were still elevated even after reopenings, which boosted rideshare demand. Uber recorded 98 millionactive users, whether for rides or food which is a 5 per cent increase from the previous quarter but 5 per cent lower than the same period last year.

Incentives for drivers

In addition to distributing free personal protective equipment, Uber announced last month it would spend $250 million as a one-time stimulus to get drivers who are hesitant to ferry passengers over food back on the road.

Lyft’s first quarter results exceeded expectations

Lyft is handing out similar incentives as it will use its cut from elevated pricing to fund investments to bring back more drivers. But, unlike Uber, it managed to beat on the top and bottom lines and exceeded Wall Street’s rider expectations for its first quarter.

Purely ride-hailing company generated $609 million of revenue that resulted in a loss per share of 35 cents. After deducting $180.7 million of stock-based compensation and related payroll tax expenses, net loss for the quarter amounted to $427.3 million whereas net loss margin was 70.2%. One year ago, it amounted to 41.7%.

Adjusted EBITDA loss was $73 million whereas the adjusted EBITDA loss margin was 12%, compared to 8.9% in the same quarter in 2020 and 26.3% in the previous quarter, fourth quarter of 2020.

It is important to highlight that YoY comparisons don’t adequately show the company’s progress since Covid-19 pandemic took hold of the world and severely restricted travel. For example, revenue is down 36% YoY but it increased 7% from the fourth quarter.

Outlook

Lyft reaffirmed its expectation that it will reach sustained adjusted profits on an adjusted EBITDA basis by the third quarter of the year. It also issued guidance for its second quarter, with revenue expected in the range between $680 million and $700 million, which is a 12% to 15% increase quarter over quarter and YoY growth between 100% and 106%. Adjusted EBITDA loss is expected in the range between $35 million and $45 million.

Strategic move to advance the profitability timeline

Lyft sold off its self-driving car unit to a subsidiary of Toyota Motor (NYSE: TM), Woven Planet, for $550 million in cash. This deal is great news for its profitability timeline as it is expected to eliminate $100 million of annualized non-GAAP operating expenses on a net basis.

Outlook – driver supply shortage

Although recovery will take time, as Covid vaccines roll out, state restrictions are lifted, and people feel more comfortable returning to work or traveling, transit companies are slowly showing signs of recovering. Moreover, Uber is confident that its business will benefit from the complementary nature of two of its large core opportunities even in a post-pandemic world as it intertwined its ride-hailing app with its delivery business.

With a resurgence in users, both companies are facing a growing need for more drivers. Lyft executives said they expect issues around supply and demand to continue in the second quarter and ease in the third. Uber executives expect ride-hailing business to bounce back as vaccinations pick up but they also acknowledged the business isfacing the same imminent challenge: not enough drivers.

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

Updates From the EV World

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EV news just keep on coming. Hyundai Motor Company (OTC: HYMTF) confirmed several new models in an investor presentation. But, in the EV world where software is more important than hardware, equipment makers are just as important as automakers, with a few players even promising to bring the game to a whole new level or change the rules entirely beside well known companies like Tesla (NASDAQ:TSLA) or General Motors (NYSE:GM). One such player is Worksport Ltd (OTC: WKSP) which has partnered with Atlis Motor Vehicles and Hercules Electric Vehicles to configure its revolutionary solar fusion technology TerraVis for their upcoming electric pickups. The company has just issued a progress update this morning to its investors, shareholders, and supporters about how it continues to expand its customer base.

Hyundai provided more details about its ambitious EV plans

Hyundai’s ambitious new-product launch cycle continue going forward with an investor presentation that confirmed several new EV models and updates to existing vehicles due next year.

The Genesis GV70 compact crossover is getting its electric version.  After the established template as theElectrified G80 that looks nearly identical to the gas-powered sedan, the GV70 EV will likely also resemble its gas-powered peer. Hyundai’s EV subrand will also gain a new Ioniq 6 sedan that will join the Ioniq 5 hatchback.

Mid-cycle updates will also be applied to various models beginning with the 2022 Genesis G90, full-size luxury sedan, that will probably arrive later this year. It will likely adopt the same “two lines” styling motif seen on the rest of the luxury brand’s models. Visual updates for the 2023 Hyundai Sonata mid-size sedan and the 2023 Hyundai Palisade three-row SUV have been announced for next year.

Worksport is strengthening its footprint

Following up its announcement from March 16th, Worksport announced this morning that it has officially secured a deal with a new brand in the automotive sector for its Private Label unit.  The innovative designer and manufacturer of tonneau covers is pleased to report that it has a queue of additional customer orders pending as a result of overwhelming product demand. When Worksport realized profitability back in 2019, it was able to do so with just one customer. With three private label customers the Company has gained along with two additional ones that are in the process of being secured, Worksport is on track to achieve profitability once again even after the havoc the COVID-19 brought to supply chains and operations across the industry. Worksport is also reporting that the first shipment from its last signed Private Label brand has already been scheduled for delivery. This major milestone speaks loads about the company’s delivery capabilities. Worksport’s CEO Steven Rossi commented  that strengthening the company’s manufacturing footprint will ensure demand is being met, bringing opportunities previously out of reach and propelling the company to new heights.

These business developments speak volumes to Worksport’s relentless determination and successful execution. It is important to highlight that the private label segment makes non-competing products both in terms of type and cost for Private Label customers, meaning that Worksport provides bespoke products for each customer that do not directly compete with neither each other nor the Worksport brand.  As always, the company isn’t disclosing customer identities to respect its Private Label agreement.

In 2020, we charged towards electric vehicles. By the looks of it, 2021 will be the year of the electric revolution.

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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