Thursday, 6 Aug 2020

European Economics Preview: EU Winter Economic Forecast Due

Stock Alert: CenturyLink Tumbles

Shares of CenturyLink Inc. (CTL) are losing more than 10 percent in the morning trade on Thursday, at $13.56. The stock has been trading in a range of $9.64 to $15.30 in the past 52 weeks.

Wednesday, CenturyLink reported fourth-quarter revenues that decreased 4 percent to $5.57 billion from $5.78 billion in the prior-year quarter.

Net income was reported at $223 million or $0.21 per share, compared to net loss of $2.41 billion or $2.26 per share in the year-ago period. Excluding items, adjusted earnings for the quarter were $0.33 per share, compared to $0.37 per share a year ago.

On average, analysts polled by Thomson Reuters expected the company to report earnings of $0.33 per share for the quarter. Analysts’ estimates typically exclude special items.

Stock Alert: Bloom Energy Falls 12% On Restating Financial Results

Bloom Energy Corp. (BE) plunged 12% on Thursday morning trade after the company announced that all its financial results reported during and since its IPO will have to be restated due to an accounting error.

BE is currently trading at $9.20, down $1.26 or 12%, on a volume of 2.5 million shares, below the three-month average volume of 2.9 million shares.

The company announced it will restate certain prior period financial statements due to an accounting error related to its Managed Services Agreements. MSAs are one of the company’s three customer financing options to acquire Bloom Energy servers.

The revenue for the Managed Services transactions will now be recognized over the duration of the contract instead of upfront.

Bloom Energy said the adjustment has no impact on its total cash and cash equivalents or cash flows.

Bloom Energy expects to report its fourth-quarter and full-year results on or before March 16.

CEO KR Sridhar said, “In the second half of 2019, Bloom Energy saw strong growth in the business. This momentum in customer engagement and demand continues to be driven by the attractiveness of our AlwaysON Microgrid offering in the face of continued grid outages and utility rate increases across the United States.”

Stock Alert: Fidelity National (FIS) Shares Hit 52-Week High

Shares of Fidelity National Information Services Inc. (FIS) touched a 52-week high of $154.94, after the financial services technology company reported better-than-expected Q4 results. The stock has been trading in a range of $104.73 – $154.94 in the past one year.

The company, today, reported Q4 GAAP net loss of $158 million or $0.26 per share versus a profit of $299 million or $0.91 per share last year. Adjusted net income was $977 million or $2.57 per share compared to $526 million or $1.60 per share last year. Revenues grew 54% to $3.34 billion from $2.17 billion last year.

Analysts polled by Thomson Reuters expected earnings of $1.53 per share and revenue of $3.33 billion for the quarter. Analysts’ estimates typically exclude certain special items.

Q1, FY 2020 Outlook

The company sees Q1 result in the range of GAAP loss $0.15 – breakeven per share, non-GAAP EPS of $1.30 – $1.34, and revenue of $3.18 billion – $3.21 billion. Wall Street analysts are looking for earnings of $1.36 per share and revenue of $3.2 billion for the quarter.

For fiscal 2020, the company expects GAAP EPS in the range of $0.50 – $1.30, non-GAAP EPS of $6.17 – $6.35, and revenue of $13.6 billion – $13.7 billion. Analysts estimate earnings of $6.36 per share and revenue of $13.56 billion for 2020.

UK PM Johnson appoints Brandon Lewis as Northern Ireland minister

LONDON, Feb 13 (Reuters) – British Prime Minister Boris Johnson appointed Brandon Lewis as Northern Ireland minister on Thursday, his office said.

Earlier Johnson sacked Julian Smith from the role. Smith had helped end three years of political paralysis in Northern Ireland and his ousting prompted criticism Johnson was indifferent to the fate of the people living there.

Stock Alert: Tempur Sealy International Inc. (TPX) Shares Hit 52-Week High

Shares of Tempur Sealy International Inc. (TPX) touched a 52-week high of $100.35 today, after the company reported stellar Q4 results. The stock has been trading in a range of $53.69 – $100.35 in the past one year.

Net income climbed to $46.2 million or $0.84 per share versus $12.3 million or $0.22 per share last year. Adjusted net income totaled $75.4 million or $1.37 per share, a jump from the previous year’s $49.7 million or $0.90 per share.

Total net sales increased 28.9% to $871.3 million as compared to $676.1 million in the fourth quarter of 2018.

Analysts polled by Thomson Reuters expected earnings of $1.17 per share and revenue of $771.42 million for the quarter. Analysts’ estimates typically exclude certain special items.

Financial markets down from record highs on coronavirus concerns

Wall Street’s main indexes eased from record highs on Thursday, pressured by shares of Cisco after its disappointing quarterly forecast, while a spike in new coronavirus cases in China weighed on the sentiment.

The Chinese province at the center of the coronavirus outbreak reported a record rise in deaths and thousands more infections using a new diagnostic method, casting fresh uncertainty over the scale of the virus outbreak.

European Economics Preview: EU Winter Economic Forecast Due

The winter 2020 economic forecast from the European Commission is due on Thursday, headlining a light day for the European economic news.

At 1.30 am ET, France unemployment data is due. The jobless rate is forecast to fall to 8.5 percent in the fourth quarter from 8.6 percent in the third quarter.

At 2.00 am ET, Destatis is slated to issue Germany’s final inflation data for January. Inflation is seen at 1.7 percent in January, unchanged from the flash estimate.

In the meantime, industrial production data is due from Turkey. Economists forecast production to grow 7 percent annually in December after rising 5.1 percent in November.

At 3.00 am ET, Hungary’s consumer price figures are due. Inflation is expected to rise to 4.3 percent in January from 4 percent in December.

At 5.00 am ET, the EU publishes economic outlook for the euro area.

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