Earnings Report

Footwear growth turns negative Under Armour’s (UAA) footwear business was considered the company’s growth engine until recently. The company recorded average quarterly growth of 52% between fiscal 2014 and 2016. However, 2Q17 was a complete letdown. Sales were down 2% YoY (year-over-year) as the company coped with tough comparisons with the year prior. Also impacting sales […]

Under Armour revises guidance As discussed in the previous section, Under Armour’s (UAA) top line grew 8.6% YoY (year-over-year) in 2Q17, against the average growth of 20% it saw up until 3Q16. This slowdown was primarily anchored by weakness in its North American business, which grew by just 0.3% during the quarter. The wholesale business was […]

Ulta Beauty (ULTA) stock fell 9.1% to $212.36 on August 25, 2017, in reaction to the company’s results for fiscal 2Q17, which ended on July 29, 2017.

Facebook’s DAUs surpass 1.3 billion Unlike Facebook (FB) and Snap (SNAP), Twitter (TWTR) doesn’t disclose its DAUs (daily active users) metrics. Instead, the company only shares metrics on its DAU growth rate. Facebook noted that it finished 2Q17 with more than 1.3 billion DAUs, up from less than 1.3 billion in 1Q17 and 1.1 billion in 2Q16. […]

In late May 2017, Microsoft (MSFT) acquired Hexadite to strengthen its position in the cybersecurity space.

Walmart (WMT) reported its fiscal 2Q18 results on August 17. Walmart’s adjusted earnings per share of $1.08 beat Wall Street’s estimate and increased 1% year-over-year.

In 2Q17, General Motors’ (GM) adjusted EBIT (earnings before interest and taxes) stood at 3.7 billion. The company’s EBIT margin was 10.0% for the quarter.

Given the growth in potash shipments and the increase in price realization, it’s natural that the margins of potash producers improved YoY in 2Q17.

Gap (GPS) reported total revenues of $3.8 billion in 2Q17 and beat the consensus by $30 million. On a YoY basis, the company’s top line fell 1.4%.

Google, Alphabet’s operating unit that manages cloud computing, noted that it is only a matter of time before it overtakes AWS to become the world’s largest cloud vendor.

PVH’s YTD gains have outperformed Hanesbrands’ (HBI) 11%, VF Corporation’s (VFC) 15.5%, Michael Kors’s (KORS) 4%, and Ralph Lauren’s (RL) -7.2% gains.

Hewlett-Packard (HPQ) is planning to open 1,000 retail stores in India by the end of 2018, which is far more than its current 490 stores.

Regulators are reviewing AT&T’s proposal to merge with Time Warner in a transaction valued at $85.4 billion.

PVH Corporation’s (PVH) top line is predicted to grow 4.9% YoY (year-over-year) in 2Q17.

AMAT expects demand for OLED displays to remain high for the coming few years as the market faces a supply shortage.

Analysts are expecting Deere (DE) to post EPS earnings per share of $1.91 for fiscal 3Q17, which would be an increase of 23.2% on a YoY basis.

The emergence of the IoT (Internet of Things), self-driving cars, AR/VR (augmented/virtual reality), and AI (artificial intelligence) is driving demand for logic and memory chips.

Denbury Resources’ short interest ratio has a 52-week high of ~12.3x and a 52-week low of 5.8x.

As of July 14, 2017, Southwestern Energy’s (SWN) total shares shorted (or short interest) stood at ~49.5 million, whereas its average daily volume was ~18.4 million.

As of July 14, 2017, Cobalt International Energy’s (CIE) total shares shorted (or short interest) was 4.37 million, whereas its average daily volume is 1.03 million.

Cisco’s Services aims to grow its Software revenue from 19.0% of its total revenue in fiscal 2014 to 22.0% in fiscal 2017 and 30.0% in fiscal 2020.

Albemarle’s (ALB) Refining Solutions is the company’s lowest revenue generator, accounting for 25.0% of its total revenues in 2Q17 compared to 26.6% in 2Q16.

Price-to-funds from operations multiple AvalonBay Communities’ (AVB) performance in 2Q17 can be best evaluated by looking at its price-to-FFO (funds from operations) multiple. The multiple, widely used for REITs, gives an idea of how much an investor pays for a particular stock per unit of its profit. The multiple, which has the same implications as the price-to-earnings […]

AWS generated an operating profit of $916 million, helping Amazon post an overall operating profit of $628 million in 2Q17.

TripAdvisor’s (TRIP) average monthly unique visitors in 2Q17 rose 18.0% YoY (year-over-year) to 414.0 million users compared to 2Q16.

Performance in 2Q17 AvalonBay Communities (AVB) has undertaken several development, redevelopment, and expansion projects to maintain its share in the market. It invested $400 million in new developments during the quarter. REITs such as UDR (UDR), Essex Property Trust (ESS), and Equity Residential (EQR) fund these activities with the help of debt and equity. Therefore, […]

ALB has guided its fiscal 2017 revenues to be in the range of ~$2.9 billion–$3.1 billion.

Cisco Systems (CSCO) acquired Meraki for $1.2 billion in November 2012. Meraki expanded its services portfolio and entered the cloud communications market.

Income generated in 2Q17 AvalonBay Communities (AVB) reported NOI (net operating income) of $367.1 million, compared with $339.6 million in 2Q16. The Northern California region reported the highest NOI of $64.6 million, followed by the New York metropolitan area, which reported NOI of $61.5 million. Development and redevelopment communities reported NOI growth of $40.1 million, […]

In 2Q17, GGP (GGP) paid $17.5 million in dividends to its shareholders. That was higher than $13.3 million paid a year ago.

In 2Q17, Marriott’s revenues grew 49% YoY to $5.8 billion, compared with $3.9 billion in 2Q16, due to higher fee revenues and RevPAR and room growth.

Demographic shift American demographics are shifting towards Class A cities with high-income growth and demand for residential apartments. These cities offer job prospects and proximity to offices, schools, and other necessities for premium social living. Although these cities also have high barriers to entry, more residential apartment owners are repositioning their properties in these areas. […]

GGP maintained a debt-to-equity ratio of 1.55x for 2Q17. That was higher than the industrial mean of 1.07x.

Robust 2Q17 driven by rent growth AvalonBay Communities’ (AVB) total revenue of $530.5 million marginally surpassed Wall Street estimates by 0.3%. However, revenue rose by almost 6% from the year prior. Upbeat top-line growth reflected growth in development communities and stabilized operating communities. Same-store revenue rose 2.5% year-over-year. Including revenue from redeveloped communities, same-store revenue […]

GGP has redeveloped its vacant spaces for non-retail uses such as restaurants, entertainment zones, fitness centers, and grocery stores.

Robust 2Q17 results AvalonBay Communities’ (AVB) top and bottom lines exceeded expectations, backed by higher net operating income growth of 8.1%.   Factors affecting profit during 2Q17 Higher occupancy and rent growth in development communities and stabilized operating communities led to upbeat results during the quarter. Higher funds from operations expected for 3Q17 AvalonBay expects […]

On July 14, 2017, Occidental Petroleum’s (OXY) total shares shorted (or short interest) stood at ~10.9 million, and its average daily volume was ~4.8 million.

GGP’s minimum rent fell 3.9% to $349.2 million, and tenant recoveries fell 4.6% to $161.9 million. Overage rent fell 25.0% to $3.3 million.

GGP (GGP) reported funds from operations (or FFO) of $0.35 per share, which was in line with Wall Street estimates. Adjusted FFO remained flat year-over-year.

SFM’s top line is expected to grow 13%–14% based on its sales comp growth of 1.5%–2.0% and 32 new store openings.