fourth-quarter earnings Archives - The Entrepreneur Times

Shares of Block surged by as much as 14% following the announcement of a surprise profit by the company

Posted on February 23, 2024September 1, 2024 by admin

Block’s stock experienced a surge of up to 14% in after-hours trading on Thursday, following the release of its fourth-quarter earnings report, which surpassed analyst expectations in terms of gross profit and demonstrated significant growth in Square and Cash App revenue.

Key performance metrics, as compared to the analyst consensus from LSEG (formerly Refinitiv), were as follows:

Earnings per share: 45 cents (adjusted), making it not directly comparable to estimates.
Revenue: $5.77 billion, exceeding the expected $5.70 billion.

Block reported a gross profit of $2.03 billion, marking a 22% increase from the previous year. Analysts typically emphasize gross profit as a more accurate indicator of a company’s core transactional businesses.

The company revised its adjusted EBITDA forecast upwards to at least $2.63 billion from the initial $2.40 billion.

Ending the year with 56 million monthly transacting actives for Cash App in December, Block showcased robust performance, particularly in peer-to-peer payments and the Cash App Card, with $1.18 billion in gross profit, reflecting a 25% year-over-year increase.

Under the leadership of Jack Dorsey, Block emphasized its strategic focus on Cash App, revealing that the Cash App Card achieved 23 million monthly actives in December, a 20% uptick and more than double the growth rate of total monthly actives. Dorsey expressed confidence in this approach, stating, “We believe this strategy will enable us to build the largest network in the long run, with a highly engaged customer base using Cash App as their primary banking solution,” in a note to shareholders.

Notably, the company has undertaken efforts to streamline operations in recent months, including reported layoffs in January and a prior round of layoffs in December.

Molson Coors aims to solidify its market share advancements amidst changing consumer preferences, particularly in the shift away from Bud Light.

Posted on February 14, 2024September 1, 2024 by admin

Molson Coors expressed its anticipation of sustaining its market share gains in the upcoming year. The brewery, known for Coors Light and Miller Lite, announced robust fourth-quarter earnings, with a 9.3% growth in net sales for 2023. These gains were largely attributed to consumers shifting away from AB InBev’s Bud Light products following boycotts that began last April.

In its earnings release, Molson Coors acknowledged being well-positioned to benefit from significant shifts in consumer purchasing habits, without explicitly referencing the boycotts. This marked a return to profitability for the company, reporting a net income of $103.3 million, or 48 cents a share, for the quarter compared to a loss of $590.5 million, or $2.73 a share, in the same period the previous year.

Molson Coors CEO Gavin Hattersley expressed confidence in the company’s strategy to maintain leadership in the beer category during the fourth-quarter earnings call. He highlighted consistent gains in core brands over nine months and emphasized growth in every region, channel, and major customer in the United States, believing that shifts in the U.S. beer industry are permanent.

Despite investing nearly 19% more in marketing and administrative costs in the fourth quarter to achieve these gains, some analysts on the earnings call remained skeptical about the sustainability of Molson’s gains from the Bud Light boycott. The stock experienced a nearly 3% decline on Tuesday, but TD Cowen analyst Robert Moskow believes the company will retain the majority of the share acquired from the boycotts. Ariel Investments, a shareholder since 2018, remains confident in Molson Coors’ performance, noting that core brands were already growing dollar share before the Bud Light controversy.

General Motors is scheduled to disclose its earnings ahead of the market opening. Here’s the anticipated forecast from Wall Street.

Posted on January 30, 2024September 1, 2024 by admin

General Motors is poised to announce its fourth-quarter earnings before the opening bell on Tuesday. According to average estimates compiled by LSEG (formerly Refinitiv), Wall Street is anticipating the following:

Adjusted earnings per share: $1.16
Revenue: $38.67 billion

If these projections hold, it would signify a 10.3% decline in revenue compared to the previous year and a substantial 45.3% drop in adjusted earnings per share. GM’s fourth-quarter results for 2022 included $43.11 billion in revenue, net income attributable to stockholders of $2 billion, and adjusted earnings before interest and taxes amounting to $3.8 billion.

In addition to quarterly earnings, investors are keenly observing for any residual or unforeseen costs stemming from the company’s new labor contract, negotiated last year with the United Auto Workers union. Moreover, the focus is on GM’s 2024 guidance.

Analysts on Wall Street anticipate a “flattish” forecast from GM compared to the previous year’s earnings. The normalization of favorable vehicle pricing, which has led to record profits in recent years, is expected. Simultaneously, cost-cutting measures are projected to help offset higher labor costs resulting from the UAW deal.

In November, GM CEO Mary Barra stated that the company is finalizing a budget for 2024 to “fully offset the incremental costs of our new labor agreements.”

GM reinstated its 2023 guidance in November, encompassing net income attributable to stockholders of $9.1 billion to $9.7 billion, or EPS of $6.52 to $7.02; adjusted earnings before interest and taxes of $11.7 billion to $12.7 billion, or $7.20 to $7.70 adjusted EPS; and adjusted automotive free cash flow of $10.5 billion to $11.5 billion.

The guidance factored in an estimated $1.1 billion EBIT-adjusted effect from approximately six weeks of U.S. labor strikes and some costs associated with an accelerated $10 billion share repurchase program announced in November.

Investors are also eager for updates on GM’s new electric vehicles and Cruise, GM’s majority-owned autonomous vehicle subsidiary currently under investigation following an October pedestrian accident in San Francisco. Cruise and GM released findings of internal investigations last week, highlighting cultural issues, regulatory challenges, and leadership shortcomings at the company but concluding that officials did not intentionally deceive regulators. Cruise remains under investigation by various entities, including the U.S. Department of Justice and the U.S. Securities and Exchange Commission.

Tag: fourth-quarter earnings

Shares of Block surged by as much as 14% following the announcement of a surprise profit by the company

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