Tuesday, 15 Jun 2021

L Brands Swings To Q1 Profit Driven By Sales Growth

Copart Q3 Results Beat Street View; Shares Up 5%

Shares of Copart Inc. (CPRT) gained over 5% in extended session Wednesday after it reported its third-quarter results, with both earnings and revenues trouncing Wall Street view.

Third-quarter profit rose to $286.8 million or $1.19 per share, up from $147.5 million or $0.62 per share last year.

Adjusted earnings for the quarter were $1.09 per share, up from $0.58 per share last year. Analysts polled by Thomson Reuters estimated earnings of $0.80 per share and revenues of $628.9 million.

Third-quarter revenues rose 33.4% to $733.9 million from $550.4 million last year. Analysts had a consensus revenue estimate of $633.05 million.

CPRT closed Wednesday’s trading at $120.99, down $0.18 or 0.15%, on the Nasdaq. The stock, however, gained $6.02 or 4.98%, in the after-hours trade.

UK House Price Growth Accelerates In April: RICS

UK house prices climbed notably in April as the increase in demand increasingly outstripped supply, monthly survey results from the Royal Institution of Chartered Surveyors, or RICS, showed on Thursday.

The house price balance rose to 75 percent in April from 62 percent in March. All regions showed sharp pick-up in house price inflation.

A headline net balance of +44 percent of contributors cited a pick-up in buyer enquiries in April, which was virtually unchanged from a reading of +43 percent a month ago.

The balance for newly agreed sales advanced to +34 percent, but down from +48 percent in March.

Looking ahead, near term sales expectations remained comfortably positive at the national level, posting a net balance of +23 percent.

The survey participants noted that the number of fresh listings arriving on the market is insufficient to match the current levels of demand. The net balance for new instructions fell to -4 percent.

Looking ahead, the near term price expectations net balance came in at +47 percent, marginally higher than the reading of +43 percent in the previous survey.

The market will undoubtedly cool as the rush to buy during the stamp duty holiday eases, Andrew Wishart, an economist at Capital Economics, said.

But with mortgage rates low and the economy recovering quickly, the recent increases in house prices are not likely to be reversed, the economist noted.

European Economics Preview: UK Consumer Price Data Due

Consumer and producer prices from the UK are due on Wednesday, headlining a light day for the European economic news.

At 2.00 am ET, the Office for National Statistics releases UK consumer and producer price figures for April. Consumer price inflation is expected to double to 1.4 percent from 0.7 percent in March.

UK output prices are forecast to rise 3.5 percent annually after rising 1.9 percent in March. Input price inflation is seen at 9.0 percent versus 5.9 percent a month ago.

In the meantime, the European Automobile Manufacturers’ Association releases Europe’s new car registrations data.

At 4.30 am ET, UK house price data is due.

At 5.00 am ET, Eurostat is scheduled to release euro area revised consumer price data for April. The harmonized inflation is expected to match the flash estimate of 1.6 percent.

Keysight Technologies Q2 Profit Rises

Electronics company Keysight Technologies, Inc. (KEYS) on Wednesday posted second-quarter net income of $186 million or $0.99 per share, higher than net income of $71 million or $0.37 per share in the same period last year.

Net income, excluding items, was $270 million or $1.44 per share, compared to $148 million or $0.78 per share in the comparable quarter of 2020.

On average, 13 analysts polled by Thomson Reuters, expected the company to report earnings of $1.34 per share in the quarter. Analysts’ estimates, usually exclude, one-time items.

Revenues during the three-month period climbed 36 percent to $1.22 billion from $895 million in the year-ago quarter. Twelve analysts were expecting the company to post revenues of $1.21 billion during the period.

In the second quarter, orders rose 22 percent to touch $1.33 billion from $1.09 billion in the previous-year period.

Looking forward to the third quarter, the company expects adjusted earnings per share between $1.39 and $1.45 and revenues of $1.21 billion to $1.23 billion.

Analysts currently expect earnings of $1.38 per share on revenues of $1.20 billion in the three-month period.

Synopsys, Inc. Q2 adjusted earnings Beat Estimates

Synopsys, Inc. (SNPS) reported earnings for its second quarter that increased from last year.

The company’s earnings totaled $195.08 million, or $1.24 per share. This compares with $109.92 million, or $0.71 per share, in last year’s second quarter.

Excluding items, Synopsys, Inc. reported adjusted earnings of $267.10 million or $1.70 per share for the period.

Analysts had expected the company to earn $1.52 per share, according to figures compiled by Thomson Reuters. Analysts’ estimates typically exclude special items.

The company’s revenue for the quarter rose 18.6% to $1.02 billion from $0.86 billion last year.

Synopsys, Inc. earnings at a glance:

-Earnings (Q2): $267.10 Mln. vs. $188.27 Mln. last year.
-EPS (Q2): $1.70 vs. $1.22 last year.
-Analysts Estimate: $1.52
-Revenue (Q2): $1.02 Bln vs. $0.86 Bln last year.

Next quarter EPS guidance: $1.75 – $1.80
Next quarter revenue guidance: $1030 – $1060 Mln
Full year EPS guidance: $6.38 – $6.45
Full year revenue guidance: $4035 – $4085 Mln

L Brands Swings To Q1 Profit Driven By Sales Growth

L Brands Inc. (LB), the parent company of Victoria’s Secret, Wednesday reported first-quarter net income of $276.6 million or $0.97 per share, compared net loss of $296.9 million or $1.07 per share last year.

Excluding one-time items, adjusted earnings were $1.25 per share compared to an adjusted loss of $0.99 per share last year.

Sales for the quarter were $3.02 billion, up from $1.65 billion last year.

Analysts polled by Thomson Reuters expected earnings of $1.21 per share on revenues of $3.01 billion for the quarter.

Andrew Meslow, CEO of L Brands, commented, “L Brands delivered record first quarter earnings, driven by continued strength and exceptional performance at Bath & Body Works and Victoria’s Secret.”

Looking forward to the second quarter, the company forecast adjusted earnings of $0.80 to $1.00 per share. Analysts currently estimate earnings of $0.76 per share for the quarter.

Separately, L Brands announced the appointment of Chief Financial Officers for the standalone Bath & Body Works and Victoria’s Secret businesses.

Upon the completion of the spin-off of Victoria’s Secret, which is targeted to occur in August 2021, Wendy Arlin, currently SVP of Finance and Controller for L Brands, will become Bath & Body Works CFO, and Tim Johnson, previously CFO and Chief Administrative Officer for Big Lots, will become Victoria’s Secret CFO.

As previously announced, current L Brands CFO Stuart Burgdoerfer will retire at that time.

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