U.S. Consumer Confidence Index Unexpectedly Edges Lower In October

After reporting a substantial improvement in U.S. consumer confidence in the previous month, the Conference Board released a report on Tuesday unexpectedly showing a slight drop in confidence in the month of October.

The Conference Board said its consumer confidence index edged down to 100.9 in October after jumping to a revised 101.3 in September.

The pullback surprised economists, who had expected the index to inch up to 102.0 from the 101.8 originally reported for the previous month.

“Consumers’ assessment of current conditions improved while expectations declined, driven primarily by a softening in the short-term outlook for jobs,” said Lynn Franco, Senior Director of Economic Indicators at The Conference Board.

She added, “There is little to suggest that consumers foresee the economy gaining momentum in the final months of 2020, especially with COVID-19 cases on the rise and unemployment still high.”

The report said the present situation index climbed to 104.6 in October from 98.9 in September, while the expectations index slid to 98.4 from 102.9.

On Friday, the University of Michigan is scheduled to release its revised reading on consumer sentiment in the month of October.

The consumer sentiment index for October is expected to be unrevised from the preliminary reading of 81.2, which was up from 80.4 in September.

Central Pacific Financial Q3 Profit Down

Central Pacific Financial Corp. (CPF) reported third-quarter net income of $6.9 million or $0.24 per share, down from $14.6 million or $0.51 per share in the prior year. Analysts polled by Thomson Reuters expected the company to report earnings of $0.34 per share for the quarter. Analysts’ estimates typically exclude special items.

The company said its operating results continue to be impacted by a higher provision for credit loss expense that was driven by the economic forecast under the current COVID-19 pandemic.

During the third quarter of 2020, the company recorded a provision for credit loss expense of $14.7 million, compared to $1.5 million in the third quarter of 2019.

Net interest income for the third quarter of 2020 was $49.1 million, compared to $45.6 million in the year-ago quarter.

On October 27, the company declared a quarterly cash dividend of $0.23 per share on its outstanding common shares. The dividend will be payable on December 15, 2020 to shareholders of record at the close of business on November 30, 2020.

Stock Alert: Omnicell Shares Up 5%

Shares of Omnicell Inc. (OMCL) are currently trading at $90.02, up $4.43 or 5.18% in the Wednesday’s regular trading session, with trading volume of over 201K versus an average volume of 457K shares. The stock has been trading in the range of $54.24 – $94.85 for the past one year.

The company issued upbeat Q4, FY20 guidance, and reported better-than-expected Q3 results.

FY20 Outlook

Omnicell sees 2020 non-GAAP earnings between $2.35 and $2.40 per share, on non-GAAP total revenue of $881 million – $887 million. Wall Street analysts estimate earnings of $2.24 per share and revenue of $874.11 million for 2020.

Q4 Guidance

The company projects fourth-quarter non-GAAP total revenues to be between $238 million and $244 million, with non-GAAP earnings of $0.72 – $0.77 per share. Analysts look for earnings of $0.72 per share on revenue of $236.36 million for the quarter.

Q3 Results

The company’s Q3 GAAP net income was $8.8 million or $0.20 per share compared to $20.0 million or $0.46 per share last year. Non-GAAP net income was $26.2 million or $0.60 per share versus $32.7 million or $0.76 per share earned a year ago. Non-GAAP revenues for the quarter amounted to $213.7 million, down 6.6%, from the previous year’s revenue of $228.8 million.

Analysts polled by Thomson Reuters expected earnings of $0.49 per share on revenue of $208.46 million for the quarter. Analysts’ estimate typically exclude certain special items.

U.S. goods trade deficit shrinks in September

WASHINGTON (Reuters) – The United States’ trade deficit in goods narrowed sharply in September as exports increased, sealing expectations for record economic growth in the third quarter.

The goods trade deficit decreased 4.5% to $79.4 billion last month, the Commerce Department said on Wednesday. Exports of goods rose $3.2 billion, while in imports fell $0.5 billion.

Bank of Canada leaves key interest rate unchanged at a record low

OTTAWA, Oct 28 (Reuters) – The Bank of Canada left its key interest rate unchanged at a record low 0.25% on Wednesday, the central bank said in a statement.

Bank of Canada Governor Tiff Macklem said in July that the rate would stay at 0.25% for at least two years as the economy slowly recovered from the coronavirus pandemic.

Stock Alert: Omnicell Shares Up 5%

Shares of Omnicell Inc. (OMCL) are currently trading at $90.02, up $4.43 or 5.18% in the Wednesday’s regular trading session, with trading volume of over 201K versus an average volume of 457K shares. The stock has been trading in the range of $54.24 – $94.85 for the past one year.

The company issued upbeat Q4, FY20 guidance, and reported better-than-expected Q3 results.

FY20 Outlook

Omnicell sees 2020 non-GAAP earnings between $2.35 and $2.40 per share, on non-GAAP total revenue of $881 million – $887 million. Wall Street analysts estimate earnings of $2.24 per share and revenue of $874.11 million for 2020.

Q4 Guidance

The company projects fourth-quarter non-GAAP total revenues to be between $238 million and $244 million, with non-GAAP earnings of $0.72 – $0.77 per share. Analysts look for earnings of $0.72 per share on revenue of $236.36 million for the quarter.

Q3 Results

The company’s Q3 GAAP net income was $8.8 million or $0.20 per share compared to $20.0 million or $0.46 per share last year. Non-GAAP net income was $26.2 million or $0.60 per share versus $32.7 million or $0.76 per share earned a year ago. Non-GAAP revenues for the quarter amounted to $213.7 million, down 6.6%, from the previous year’s revenue of $228.8 million.

Analysts polled by Thomson Reuters expected earnings of $0.49 per share on revenue of $208.46 million for the quarter. Analysts’ estimate typically exclude certain special items.