Text Resize
Print
Email
Subsribe to RSS Feed

Monday October 25, 2021

Finance News

Finances
 

Lowe's Reports Earnings

Lowe's Companies, Inc. (LOW) released its first quarter earnings report on Wednesday, May 19. First quarter sales climbed 24%, beating analysts' expectations.

Lowe's posted quarterly sales of $24.4 billion, exceeding Wall Street's estimated revenue of $23.8 billion. This is up from $19.7 billion reported at the same time last year.

"Our outstanding performance continued this quarter, as we delivered strong sales growth and operating margin expansion," said Marvin R. Ellison, President and CEO of Lowe's. "I would like to thank our front-line associates for their hard work and commitment to delivering exceptional customer service. Looking forward, I remain confident in our ability to accelerate our market share gains while driving further improvement in operating margin."

Lowe's reported net income of $2.32 billion or $3.21 per share. This is up from $1.34 billion or $1.76 per share reported at this time last year.

Lowe's operates 1,972 home improvement stores in the U.S. and Canada. The company offers a profit-sharing bonus program for its front-line hourly associates. For the fifth consecutive quarter, 100% of Lowe's stores earned the bonus paying out $152 million to associates. Over the quarter, Lowe's repurchased 16.8 million shares from stockholders at $3.1 billion and distributed $440 million in dividends.

Lowe's Companies, Inc. (LOW) shares closed at $192.47, down 2.6% for the week.

Macy's Reports Strong Earnings


Macy's, Inc. (M) released its first quarter earnings report on Tuesday, May 18. Earnings and revenue far exceeded analysts' expectations.

Macy's posted quarterly revenue of $4.71 billion, beating revenue estimates of $4.37 billion. Revenue was $3.02 billion at this time last year.

"As consumers seek to re-engage with each other, we are seeing promising signs that our core customers are shopping again, and we continue to attract new customers, who increasingly begin their shopping experience with us online," said Macy's CEO Jeff Gennette. "Customers are shopping categories that have been strong throughout the pandemic, including home, fine jewelry and watches, fragrance and luxury items. And we're encouraged by the improvement we're seeing in special occasion categories as customers begin to travel and return to a pre-pandemic lifestyle."

For the quarter, Macy's reported net income of $103 million or $0.39 adjusted earnings per share, better than the $0.41 loss anticipated by analysts. This is up from a net loss of $3.58 billion or $2.03 adjusted earnings per share reported at the same time last year.

Macy's raised its guidance for the full year from between $19.75 and $20.75 billion to between $21.73 and $22.23 billion in net sales. These estimates are based on the strong first quarter coupled with optimism for the recovering economy. The company expects earnings per share to come in between $1.71 to $2.12, up from prior estimates between $0.40 to $0.90. Macy's reported 4.6 million new customers for the first quarter, 47% of whom visited through the digital channel.

Macy's, Inc. (M) shares closed at $18.20, relatively unchanged for the week.

Walmart Reports Earnings


Walmart Inc. (WMT) released its first quarter earnings report on Tuesday, May 18. The retail giant's revenue exceeded analysts' expectations.

Walmart reported revenue of $138.3 billion for the first quarter. This was up 2.7% from $134.6 billion reported in the same quarter last year and exceeded analysts' expectations of $132.0 billion.

"In the U.S., customers clearly want to get out and shop," said Walmart's President and CEO Doug McMillon. "We have a strong position as our store environment improves and eCommerce continues to grow. Stimulus in the U.S. had an impact, and the second half has more uncertainty than a typical year. We anticipate continued pent-up demand throughout 2021."

Walmart reported earnings of $2.73 billion or $0.97 per share for the quarter. This was down from earnings of $3.99 billion or $1.41 per share reported last year at this time.

Walmart's U.S. comparable store sales increased 6% for the quarter, with eCommerce sales contributing 3.6% to comparable store sales. Walmart's U.S. eCommerce sales were up 37%. Sam's Club, owned and operated by Walmart, saw comparable sales increase 7.2%, while eCommerce sales grew 47%.

Walmart Inc. (WMT) shares ended at $141.75, up 1.3% for the week.

The Dow started the week at 34,375 and closed at 34,208 on 5/21. The S&P 500 started the week at 4,170 and closed at 4,156. The NASDAQ started the week at 13,369 and closed at 13,471.
 

Treasury Yields Decline

Yields on U.S. Treasurys dropped Thursday after comments released from the Federal Reserve suggested it may taper bond purchases. The latest weekly jobless claims data indicate potential progress in the economic recovery, which would support Fed tapering.

On Wednesday, May 19, the Federal Market Open Committee released the minutes from its most recent meeting. Participants indicated a speedy economic recovery could lead to a taper in bond purchases. The Fed currently purchases at least $80 billion in Treasurys and $40 billion in mortgage-backed securities each month, with the total $7.9 trillion held in bonds at almost double the amount held before the pandemic.

"A number of participants suggested that if the economy continued to make rapid progress toward the Committee's goals, it might be appropriate at some point in upcoming meetings to begin discussing a plan for adjusting the pace of asset purchases," the meeting summary said. However, "various participants" believed it would "likely be some time until the economy had made substantial further progress toward the Committee's maximum-employment and price-stability goals relative to the conditions prevailing in December 2020 when the Committee first provided its guidance for asset purchases."

The 10-year Treasury note opened the week at 1.626%, reached 1.695% on Wednesday, but fell to 1.612% on Friday. The 30-year Treasury bond opened the week at 2.347% and reached as high as 2.404% on Wednesday.

Jobless claims fell to 444,000 for the week ended May 15, down from 478,000 reported by the Labor Department the week before. Jobless claims totaled 2.3 million at this time last year. Continuing claims were up 111,000 this week, for a total of 3.75 million.

"The April jobs report was disappointing," wrote Gus Faucher, PNC chief economist. "But the steady decline in initial unemployment insurance claims over the past few months, as well as other UI data, suggest that the April report understated the improvement in the labor market."

The 10-year Treasury note yield closed at 1.62% on 5/21, while the 30-year Treasury bond yield was 2.32%.
 

30-Year Mortgage Rates Reach 3%

Freddie Mac released its latest Primary Mortgage Market Survey on Thursday, May 20. The report showed an increase in rates since last week.

The 30-year fixed rate mortgage averaged 3.00%, up from 2.94% last week. At this time last year, the 30-year fixed rate mortgage averaged 3.24%.

This week, the 15-year fixed rate mortgage averaged 2.29%, up from 2.26% last week. Last year at this time, the 15-year fixed rate mortgage averaged 2.70%.

"After a run up over the first few months of the year, rates have paused and hovered around three percent since March," said Freddie Mac's Chief Economist Sam Khater. "Despite this favorable rate climate, there remains a shortage of homes for sale. The lack of housing supply has been compounded by labor disruptions and expensive building materials that are driving up the cost of new housing, making it difficult for homebuyers to find homes to purchase."

Based on published national averages, the national average savings rate was 0.06% as of 5/17. The one-year CD averaged 0.14%.

Published May 21, 2021
Print
Email
Subsribe to RSS Feed

Previous Articles

Fossil Watches Reports Earnings

Pfizer Reports First Quarter Earnings

Alphabet Reports Earnings

Coca-Cola Reports Earnings

Wells Fargo Rides Strong 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