Wednesday, 8 Jul 2020

Coty’s problems won’t be solved by selling the professional beauty business, analysts say

Manchester Arena attack: Bomber’s brother pleads not guilty to 22 murders

The brother of the Manchester Arena bomber has pleaded not guilty to 22 counts of murder relating to those who died in the attack.

He also pleaded not guilty to one count of attempted murder over those who were injured in the blast on 22 May 2017, and not guilty to conspiring to cause explosions with his brother Salman.

Abedi is due to go on trial at the Old Bailey on 13 January and will remain in custody until then.

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Polaris Industries Raises FY19 EPS Outlook – Quick Facts

While reporting financial results for the third quarter on Tuesday, Polaris Industries Inc. (PII) raised the lower end of its earnings guidance range for fiscal 2019, based on its year-to-date performance.

For fiscal 2019, the company now projects earnings in a range of $6.20 to $6.30 per share, compared to the prior outlook range of $6.10 to $6.30 per share.

The company also now projects annual sales to grow about 12 percent, compared to the prior projection for a 12 to 13 percent growth.

On average, analysts polled by Thomson Reuters expect the company to report earnings of $6.16 per share on sales growth of 12.4 percent to $6.83 billion for the year. Analysts’ estimates typically exclude special items.

CVS Suspends Sale Of Popular Heartburn Drug Zantac Over Possible Cancer Link

Sept 28 (Reuters) ― CVS Health Corp said on Saturday it will discontinue sales the popular Zantac heartburn treatment and its own generic ranitidine products from its pharmacies after traces of a known carcinogen were found in some of the products by the U.S. Food and Drug Administration.

The FDA said earlier this month that some of the pills contained small amounts of N-nitrosodimethylamine (NDMA), which has also been found in some widely used blood pressure medicines, leading to shortages of those drugs.

CVS said the move to suspend sales of the over-the-counter heartburn drug was taken out of caution while the FDA continues to review if low levels of NDMA in ranitidine ― the active ingredient in Zantac ― poses a health risk to patients.

“Zantac brand products and CVS brand ranitidine products have not been recalled, and the FDA is not recommending thatpatients stop taking ranitidine at this time,” CVS said a statement.

Novartis AG’s Sandoz unit said last week it was halting distribution of Zantac in all its markets, including the United States and Canada, following safety review of the drug by U.S. and European drug regulators.


Nucor Issues Q4 Outlook – Quick Facts

Nucor Corp. (NUE) said the company’s earnings in the fourth quarter of 2019 are expected to decrease as compared to the third quarter of 2019. The company expects earnings in the steel mills segment to further decrease in the fourth quarter of 2019 from the third quarter, while the profitability of the steel products segment is expected to decrease slightly. The performance of the raw materials segment is projected to decline compared to the third quarter of 2019.

For the third-quarter, net earnings per share was $0.90 compared to $2.13, a year ago. On average, 12 analysts polled by Thomson Reuters expected the company to report profit per share of $0.80, for the quarter. Analysts’ estimates typically exclude special items.

Third-quarter consolidated net sales were $5.46 billion, down 19 percent compared with $6.74 billion in the third quarter of 2018. Analysts expected revenue of $5.54 billion for the quarter.

A total of 6,555,000 tons were shipped to outside customers in the third quarter of 2019, a 7 percent decrease from the third quarter of 2018. Total steel mill shipments decreased 8 percent from the third quarter of 2018.

Michaels gives interim CEO the permanent job

The Michaels Companies Inc. MIK, +2.44% said Tuesday that it had tapped its interim chief executive to take on that role permanently. Mark Cosby had been serving in the interim chief executive position since February 2019 and had stints at Office Depot Inc. ODP, +0.00%, CVS Health Corp.’s CVS, -0.70% Caremark, and Macy’s Inc. M, +2.05% prior to joining the crafts retailer. "The search committee conducted an exhaustive evaluation of many outstanding candidates and unanimously concluded that Mark brings the right strategic vision and operating skill to lead Michaels into a new chapter," Chairman James Quella said in a release. Michaels shares were inactive in premarket trading. The stock has tumbled 27% so far this year, while the S&P 500 SPX, +0.69% has gained 20%.

Coty’s problems won’t be solved by selling the professional beauty business, analysts say

Coty Inc. COTY, +13.44% will still have problems, even if it does decide to sell off the professional beauty and Brazilian businesses, Wells Fargo analysts say. Coty announced on Monday that it was exploring strategic options for these businesses, which could include a divestiture. Revenue for these businesses is expected to be $2.7 billion for the year. "However, selling off the businesses won’t change Coty’s ongoing challenges in consumer beauty, and we still view Coty, excluding professional beauty, as a structurally disadvantaged portfolio versus peers," Wells Fargo said. Still analysts say the announcement is positive, and maintained their market perform stock rating. Analysts raised its price target to $11 from $10. D.A. Davidson also raised its price target, to $13 from $10.50. Analysts maintained their neutral stock rating. "Coty has relatively complete portfolios of prestige fragrance and mass color brands, but with its newly-stated strategic objective, we expect the company, once deleveraged, to pursue acquisitions of prestige color and prestige skin care brands," analysts led by Linda Bolton Weiser wrote. Coty stock inched down 0.7% in Tuesday premarket trading, but shares are up 75% for the year to date. The S&P 500 index SPX, +0.69% is up 20% for 2019 so far.

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