VF Corporation raised its earnings guidance for 2015 based on expectations for direct-to-consumer sales and lower costs for energy and certain materials.
VF Corporation’s stock fell by 0.5% to $72.05 at the close of trading on May 1, after the company released 1Q15 earnings. Competitors Nike and Under Armour were up though.
Higher direct-to-consumer sales also play an important role in determining profitability. DTC revenue earns higher margins.
Despite the relatively strong performance by the other four segments, VFC’s contemporary brands coalition continues to face market challenges.
VF Corporation reported $2.8 billion in sales, up 2% over levels in 1Q14. The company’s performance was largely in line with consensus Wall Street analyst estimates.
What is Century Aluminum’s 2015 outlook? Aluminum demand in its core European and US markets is expected to be strong. Aluminum demand in North America grew 5% in 1Q15.
Construction at Century Aluminum’s plant in Helguvik is stalled since it hasn’t been able to secure a power supply. The plant would substantially increase production capacity.
Century Aluminum’s financial performance has improved over the last couple of quarters. Its net profit margin in 1Q15 was 12.55%, a good sign for investors.
In 1Q15, Century Aluminum’s global shipments increased 9%. US shipments increased 15% largely due to the acquisition of the Mt. Holly smelter from Alcoa.
Century Aluminum’s 1Q15 earnings release on April 30 made Wall Street jubilant. The company posted an adjusted EPS (earnings per share) of $0.72, up 10% from 4Q14.
Highly leveraged players such as Alpha Natural Resources (ANR) have limited ability to issue new debt if they run out of resources.
Alpha Natural Resources reported an average adjusted cost of sales per ton of $37.11 in 1Q15, down from $41.25 in 1Q14. Meanwhile, the cost per ton was higher than 4Q14’s $35.73.
Alpha Natural Resources burned $59.8 million of operating cash in 1Q15 compared to $54 million in 1Q14. Eastern coal burned cash even at the operating level.
With $3.3 billion of debt still on the books and a coal price recovery nowhere in sight, Alpha Natural Resources’ balance sheet remains under pressure.
Overall revenues from the Alpha Natural Resources PRB segment fell to $115.7 million in 1Q15, down from $115.8 million in 1Q14 and $118.2 million in 4Q14, despite higher shipments.
Twitter is acquiring TellApart for $533 million. TellApart should help Twitter enhance its ad targeting and ad measurement capabilities.
Twitter has faced a number of issues that have slowed down its MAU growth. In 3Q14, the implementation of an authentication measure negatively affected user growth in some Asia-Pacific countries.
After a below-par 1Q15, Twitter (TWTR) is hopeful that it will start attracting more users to its platform and increase the level of user engagement.
All in all, it’s a worrying sign for Twitter investors that a promising ad format like app installs is underperforming for the company.
Unhappy investors punished the company for the disappointing results, sending Twitter stock down 25% following the earnings release.