Text Resize
Print
Email
Subsribe to RSS Feed

Wednesday June 16, 2021

Finance News

Finances
 

Coca-Cola Reports Earnings

The Coca-Cola Company (KO) announced its first quarter earnings report on Monday, April 19. The multinational beverage company's shares fell less than 1% in morning trading following the report's release.

Coca-Cola reported first quarter net revenue of $9.02 billion. This exceeded the $8.60 billion reported in the same quarter last year and the $8.60 billion expected by analysts.

"We remain focused on emerging stronger and executing against our growth accelerators during the recovery phase," said Coca Cola CEO James Quincey. "We are pleased with the progress we are making. We are encouraged by improvements in our business, especially in markets where vaccine availability is increasing and economies are opening up, and we remain confident in our full year guidance."

The company reported net income of $2.26 billion or $0.52 per share. This was down from $2.80 billion or $0.65 per share reported in the same quarter last year.

The company reported that sales volume trends remain linked to consumer mobility. The company attributed consumer mobility as being positively impacted by vaccination rates and regions where the COVID-19 pandemic has become less widespread. Volume trends steadily increased in each month of the first quarter, with March reaching pre-pandemic levels. Unit case volume declined by 6% in the North America region and by 2% in the Europe, Middle East and Africa region. Unit case volume growth remained static in the Latin America region, while the Asia-Pacific region saw 9% growth.

The Coca-Cola Company (KO) shares ended the week at $54.47, relatively unchanged for the week.

Johnson & Johnson Posts Earnings


Johnson & Johnson (JNJ) reported its first quarter earnings on Tuesday, April 20. The company reported increased revenue and earnings for the quarter.

Net revenue came in at $22.3 billion for the quarter, up 7.9% from the $20.7 billion reported at the same time last year. This exceeded the $21.82 billion in net revenue that analysts expected.

"Johnson & Johnson delivered a strong first quarter performance led by the above market growth of our Pharmaceutical business and continued recovery in Medical Devices," said CEO of Johnson & Johnson, Alex Gorsky. "The ability to deliver these results while simultaneously advancing our robust pipeline of life-enhancing medicines, products and solutions during these times is a testament to the strength and resilience of our business and the dedication of the 135,000 employees of Johnson & Johnson who strive every day to profoundly change the trajectory of health for humanity and make healthier communities for everyone, everywhere."

Johnson & Johnson reported net earnings of $6.2 billion or $2.32 per share. This was up 6.9% from the $5.8 billion or $2.17 per share reported at this time last year.

On April 13, officials paused administration of the Johnson & Johnson vaccine due to reports of vaccine recipients developing unusual blood clots with low platelet levels. As of April 23, a federal advisory panel recommended that the United States resume use of the Johnson & Johnson vaccine with a warning label of the rare risk of blood clots. For the quarter, the company reported $100 million in sales of the one-dose COVID-19 vaccine. In the report, the company announced updated expected full-year net earnings in the range of $9.42 to $9.57 per share and net revenue in the range of $90.6 to $91.6 billion.

Johnson & Johnson (JNJ) shares ended the week at $165.52, up 1.9% for the week.

Chipotle Releases Earnings Report


Chipotle Mexican Grill, Inc. (CMG) released its first quarter earnings report on Wednesday, April 21. The fast-casual chain restaurant company's shares were up less than 1% in trading following the report's release.

Chipotle reported net revenue for the quarter of $1.7 billion, up 23.4% from $1.4 billion reported at this time last year. Net revenue was on par with Wall Street's expectations of $1.7 billion.

"Chipotle is off to a great start in 2021 thanks to our employees and their incredible level of collaboration and tireless dedication," said Brian Niccol, CEO of Chipotle. "As vaccines roll out and we get closer to moving past this pandemic, I believe Chipotle is well positioned for growth. I'm excited about our future as we remain focused on innovating in culinary, leading in food with integrity, and providing convenient access inside our restaurants and through our expanding digital ecosystem."

The company reported net income of $127.1 million or $4.45 per share, up from $76.4 million or $2.70 per share in the same quarter last year. Costs related to corporate restructuring and closures related to COVID-19 reduced earnings by $0.91 per share.

The California-based restaurant company reported an increase in comparable restaurant sales of 17.2% for the quarter. The digital sales segment increased 133.9% for the quarter and made up 50.1% of net sales. The company believes the successful launch of its new quesadilla product may have caused the increase in digital sales growth. Due to the increase in digital orders, Chipotle announced increases in its delivery fees and menu prices. The company opened 40 new restaurants and closed five during the quarter. Chipotle expects to open approximately 200 new restaurants this year. The company continues to withhold guidance for the year due to the COVID-19 pandemic.

Chipotle Mexican Grill, Inc. (CMG) shares ended the week at $1,468.53, down 3.8% for the week.

The Dow started the week of 4/19 at 34,182 and closed at 34,043 on 4/23. The S&P 500 started the week at 4,180 and closed at 4,180. The NASDAQ started the week at 13,985 and closed at 14,017.
 

U.S. Treasury Yields Hold Steady

Yields on U.S. Treasurys remained flat Thursday following the release of the Labor Department's jobless claims report. Investor reactions were muted after the Commerce Department released its new home sales report on Friday.

First-time unemployment insurance claims fell to 547,000 for the week ending April 17. This is down from 586,000 new claims reported in the previous week and beat the 610,000 economists expected. This is a new low for the pandemic era.

"This dip in jobless claims looks good in isolation but what really matters is that it confirms that last week's unexpected plunge was no fluke," said Ian Shepherdson, chief economist at Pantheon Macroeconomics. "We expect further declines over the next few months as the reopening continues, while payroll growth will accelerate markedly."

The 10-year Treasury note opened the week of April 19 at 1.584% and hit a low of 1.532% on Thursday, April 22. The 30-year Treasury bond yield opened the week at 2.275% and hit a low of 2.222% on Thursday.

Yields moved only slightly following the home sales reports. New single-family home sales increased 20.7% on a seasonally adjusted rate of 1.021 million units, reaching a peak that was last seen in August 2006. Existing closed home sales fell 3.7%, reaching a seasonally adjusted annualized rate of 6.01 million units. The median price for a new house increased 0.8% year-over-year to $330,800 in March.

"Inventories remain tight and while that should be a positive for home building activity, a lack of availability will likely remain a headwind for sales in the near term," said Rubeela Farooqi, chief U.S. economist at High Frequency Economics.

The 10-year Treasury note yield closed at 1.562% on 4/23, while the 30-year Treasury bond yield was 2.240%.
 

Mortgage Rates Continue to Fall

Freddie Mac released its latest Primary Mortgage Market Survey on Thursday, April 22. Mortgage rates continued to dip with the 30-year fixed rate mortgage falling below 3%.

This week, the 30-year fixed rate mortgage averaged 2.97%, down from last week's average of 3.04%. Last year at this time, the 30-year fixed rate mortgage was at 3.33%.

The 15-year fixed rate mortgage averaged 2.29% this week, down from 2.35% last week. During the same time last year, the 15-year fixed rate mortgage averaged 2.86%.

"The drop in mortgage rates is good news for homeowners who are still looking to take advantage of the very low rate environment," said Sam Khater, Freddie Mac's Chief Economist. "Freddie Mac research suggests that lower income and minority homeowners have been less likely to engage in the refinance market. Low and declining mortgage rates provide these homeowners the opportunity to reduce their monthly payment and improve their financial position."

Based on published national averages, the national savings rate was 0.06% as of 4/19. The one-year CD averaged 0.14%.

Published April 23, 2021
Print
Email
Subsribe to RSS Feed

Previous Articles

Wells Fargo Rides Strong Earnings

Simply Good Foods Reports Earnings

Dave & Buster's Reports Earnings

GameStop Reports Earnings

Lands' End Reports Earnings

scriptsknown
  • Bequests
    Bequests
    Joe and Anna have been faithful supporters of our organization. They believe it is important to help further our mission.
    More
  • Using a Beneficiary Designation to Make a Gift to Charity
    Using a Beneficiary Designation to Make a Gift to Charity
    Joanne and her late husband Hal had been longtime supporters of our organization. Recently, Joanne's children encouraged...
    More
  • Fixed Income for Retirement
    Fixed Income for Retirement
    After working for decades as a pediatrician in a small town, Patricia is ready to retire.
    More
  • Tax-Free Sale
    Tax-Free Sale
    Howard and Lynn were both age 55 when they purchased some vacant land a few miles outside of town. They thought real estate would be a good investment that could be sold later for a profit.
    More
  • Capital Gains Tax Bypassed
    Capital Gains Tax Bypassed
    Peter and Gail were nearing retirement. Over the years, with the help of their financial advisor, they made solid investments in securities and built a sizable portfolio.
    More
  • Peace of Mind Gift Annuity
    Peace of Mind Gift Annuity
    Many years ago, Clara bought a home. Since she was very pleased with her home, she bought stock in the company that built the home.
    More
  • Endowment Gift
    Endowment Gift
    Pat and Shelly were recently married. They both had been dedicated volunteers at their favorite charity for many years.
    More
  • Sale and Unitrust
    Sale and Unitrust
    Gene and Carol purchased stock in a small medical service company several years ago. The company has done well.
    More
  • The Retirement Unitrust
    The Retirement Unitrust
    Mary grew up on a farm. When her parents passed away, she and her husband Bill inherited the farm.
    More
  • Property Turns Into Income
    Property Turns Into Income
    Miranda lived in the family home where she and her spouse had raised their three children. After her spouse passed away, Miranda found it increasingly difficult to care for her property.
    More
  • Flexible Deferred Gift Annuity
    Flexible Deferred Gift Annuity
    Luis is a 54-year-old executive at a large healthcare company. He purchased company stock during years when the stock price was low, and now the stock has grown substantially in value.
    More
  • Part Gift and Part Sale
    Part Gift and Part Sale
    Susan and Kevin bought a vacant lot along Lake Michigan many years ago. They had planned to build a second home so that their family could spend their summers along the lake.
    More
  • Current Gifts
    Current Gifts
    As is the case with many families, there are times each year when Jim and Sharon focus their attention on gift giving.
    More
  • Gift of a Bank Account When No Longer Needed (POD)
    Gift of a Bank Account When No Longer Needed (POD)
    Keith has been a faithful supporter of The Marfan Foundation and makes regular gifts to support our work.
    More
  • Transferable on Death (TOD) Gifts
    Transferable on Death (TOD) Gifts
    Harold and Jeanne married after meeting at an event The Marfan Foundation held for our donors. They wanted to leave a legacy gift...
    More
  • A Bequest to Further Good Work
    A Bequest to Further Good Work
    Nancy and David were dedicated volunteers. Over the years, they had seen many individuals helped by the good work of their favorite charity.
    More
  • Deferred Gift Annuity
    Deferred Gift Annuity
    Several years ago, Larry and Allison invested $30,000 in what they believed to be an attractive stock.
    More
  • What Will You Do with Your Unspent Retirement Savings?
    What Will You Do with Your Unspent Retirement Savings?
    Michael and Kelly were retired engineers with two adult children. They owned a home, some stocks, and IRAs.
    More
  • Gift Annuity for Real Estate
    Gift Annuity for Real Estate
    Jonathan purchased his home many years ago for $80,000. The home is now worth $420,000. Jonathan wants to sell his home and buy a condo for $130,000.
    More
  • A Bequest to Save Taxes
    A Bequest to Save Taxes
    Thomas was a widower who had a great love for our organization. As an individual who had directly benefited from our work, Thomas wanted to thank us with a gift from his estate.
    More
  • Leading for the Future
    Leading for the Future
    Luke and Cynthia spent many years volunteering and supporting their favorite charity. They wanted to give back in a way that would help fulfill its mission.
    More
  • Give it Twice Trust
    Give it Twice Trust
    While visiting her favorite charity's website, June came across the idea of a give it twice trust. She contacted the charity for more information.
    More
  • Providing for Our Children's Future
    Providing for Our Children's Future
    Ron and Kathy worked for many years building their nest egg for retirement.
    More
  • Bequest of Insurance
    Bequest of Insurance
    Marla and Wayne purchased a life insurance policy many years ago to create security for their children's future.
    More
  • Testamentary Charitable Remainder Unitrust: Have Your Cake and Eat it Too!
    Testamentary Charitable Remainder Unitrust: Have Your Cake and Eat it Too!
    We have all heard the saying "You can't have your cake and eat it too." This phrase describes a situation where we want two good things at the same time when that isn't possible.
    More
  • A Personal Donor Story
    A Personal Donor Story
    "I want the work of the foundation to go forward whether I'm here or not"
    Estate planning is your final statement about the causes you care about
    More