Text Resize
Print
Email
Subsribe to RSS Feed

Monday June 24, 2024

Finance News

Finances
 

Rivian Rolls Out First Quarter Earnings

Rivian Automotive Inc. (RIVN) posted its first quarter earnings report on Tuesday, May 9. The electric automotive company reported better-than-expected revenue causing its stock to rise almost 4% following the release of the report.

Rivian reported revenue of $661 million for the quarter, significantly up from the $95 million reported during the same quarter last year. Quarterly revenue exceeded analysts' expectations of $652.1 million.

"Our core priorities for 2023 are unchanged," said Rivian CEO, RJ Scaringe. "The team remains focused on ramping production, driving cost reductions, developing the [upcoming smaller] R2 platform and future technologies and delivering an outstanding end-to-end customer experience."

The company posted net losses of $1.35 billion or $1.45 per adjusted share for the quarter. This was an improvement compared to net losses of $1.59 billion or $1.77 per adjusted share during the same quarter last year.

Rivian announced that it had produced 9,395 EVs and delivered 7,946 vehicles during the first quarter. The company received IIHS TOP SAFETY PICK+ for its R1T and R1S. The R1T is the only electric truck and the R1S is the only large electric SUV to receive the highest safety rating in 2023. The company reaffirmed its full-year production guidance and plans to produce 50,000 vehicles by the end of 2023, twice as many vehicles produced compared to 2022.

Rivian Automotive Inc. (RIVN) shares ended the week at $12.91, down 4% for the week.

Airbnb Announces Quarterly Earnings


Airbnb, Inc. (ABNB) released its first quarter earnings on Tuesday, May 9. The San Francisco-based online vacation platform's shares dropped 11% following release of the report despite exceeding analysts' revenue estimates.

The company's revenue for the first quarter was $1.82 billion. This was up 20% from $1.51 billion during the same quarter last year and just above analysts' forecast of $1.79 billion.

"We had another record-setting Q1, with more than 120 million nights and experiences booked and accelerating supply growth around the world," said Airbnb's CEO, Brian Chesky. "We also saw 20% year-over-year revenue growth and Free Cash Flow for the quarter was $1.6 billion. And with over 50 new features and upgrades released last week, our service has never been better."

Airbnb reported net income of $117 million during the quarter or $0.18 per adjusted share. This was up from net losses of $19 million or $0.03 per share last year at this time.

Airbnb's Nights and Experiences Booked category brought in $121.1 million during the quarter, a 19% rise from the same quarter in 2022. The company's gross bookings value was $20.4 billion, a 19% increase from last year. Stays of 28 days or more made up 18% of bookings in the quarter, a decline from 21% in the same period a year earlier. Airbnb recently launched a re-design which includes upgrades and features such as a total price display, improved pricing tools for hosts, transparent checkout instructions and flexible payment options. Airbnb's Board of Directors authorized a new share repurchase program of $2.5 billion.

Airbnb, Inc. (ABNB) shares ended the week at $105.28, down 15% for the week.

Disney Releases Earnings


The Walt Disney Company (DIS) reported its quarterly earnings on Wednesday, May 10. The company's stock dipped more than 5% following the release of the report.

Revenue for the second quarter was $21.82 billion. This was up 13% from $19.25 billion in revenue last year at this time. This was slightly ahead of analysts' expectations of $21.78 billion.

"We're pleased with our accomplishments this quarter, including the improved financial performance of our streaming business, which reflect the strategic changes we've been making throughout the company to realign Disney for sustained growth and success," said Disney CEO, Robert A. Iger. "From movies to television, to sports, news, and our theme parks, we continue to deliver for consumers, while establishing a more efficient, coordinated, and streamlined approach to our operations."

Disney posted net income of $1.27 billion for the quarter or $0.69 per adjusted share. Last year at this time, the company reported a net income of $470 million or $0.26 per adjusted share.

The company's Parks, Experiences and Products segment posted revenue of $7.8 billion, a 17% jump from $6.7 billion one year ago. Domestic and International Channels revenue segments were both up from the prior year, reaching $5.6 billion and $1.2 billion, respectively. Disney attributed the increase to higher guest volumes and spending at its international and domestic parks, more occupied rooms and increased passenger cruise days. Operating income for Disney Media and Entertainment dropped to $1.1 billion, marking a 42% decrease from $1.9 billion one year ago. Disney lost 4 million subscribers in its Disney+ streaming offering, giving the company a total of 157.8 million subscribers.

The Walt Disney Company (DIS) shares ended the week at $91.99, down 9% for the week.

The Dow started the week of 5/8 at 33,715 and closed at 33,301 on 5/12. The S&P 500 started the week at 4,137 and closed at 4,124. The NASDAQ started the week at 12,232 and closed at 12,285 .
 

Treasury Yields on the Decline

U.S. Treasury Yields rose earlier in the week as investors waited for economic data on inflation. Yields fell towards the end of the week as markets reacted to increasing unemployment claims and other information indicating easing inflation.

On Wednesday, the U.S. Department of Labor announced that the consumer price index (CPI), which measures the cost of dozens of everyday consumer goods, rose 0.4% in April, matching economists' forecasts. The CPI year-over-year fell to 4.9%, down from 5.0% the prior month and marked the lowest 12-month rate change since April 2021.

"I think the Fed is going to hold pat for now, keep rates where they are to the end of the year," said Global Chief Economist at Kroll Institute, Megan Greene. "This report does not do much to change that. Inflation was always going to be bumpy on the way down; this report was in the right direction, but it does not mean next month won't be in the wrong direction."

The benchmark 10-year Treasury note yield opened the week of May 8 at 3.44% and traded as high as 3.53% on Tuesday and Wednesday. The 30-year Treasury bond opened the week at 3.76% and traded as high as 3.86% on Tuesday.

On Thursday, the U.S. Department of Labor reported that initial claims for unemployment increased 22,000 to 264,000 for the week ending May 6, the highest recording since October 2021. Continuing unemployment claims increased 12,000, reaching over 1.81 million.

"While the claims series can always be volatile from week to week, there are no obvious distortions to today's number," said U.S. Chief Economist at JPMorgan in New York, Michael Feroli. "Business labor demand has been gradually cooling and today's initial claims reading hints at potentially a more abrupt slowing."

The 10-year Treasury note yield finished the week of 5/12 at 3.47%, while the 30-year Treasury note yield finished the week at 3.79%.
 

Mortgage Rates Continue to Fall

Freddie Mac released its latest Primary Mortgage Market Survey on Thursday, May 11. The 30-year mortgage rate fell for the second consecutive week.

This week, the 30-year fixed rate mortgage averaged 6.35%, down from last week's average of 6.39%. Last year at this time, the 30-year fixed rate mortgage averaged 5.30%.

The 15-year fixed rate mortgage averaged 5.75% this week, down from 5.76% last week. During the same week last year, the 15-year fixed rate mortgage averaged 4.48%.

"This week's decrease continues a recent sideways trend in mortgage rates, which is a welcome departure from the record increases of last year," said Freddie Mac's Chief Economist, Sam Khater. "While inflation remains elevated, its rate of growth has moderated and is expected to decelerate over the remainder of 2023. This should bode well for the trajectory of mortgage rates over the long-term."

Based on published national averages, the savings rate was 0.39% as of 4/17. The one-year CD averaged 1.54%.

Editor's Note: The publicly available financial information is offered as a helpful and informative service to our friends. This article is not an endorsement of any company, product or service.

Published May 12, 2023
Print
Email
Subsribe to RSS Feed

Previous Articles

Starbucks Brews Up Quarterly Earnings

Alphabet Posts First Quarter Earnings

Bank of America Reports Earnings

CarMax Earnings Stall

Acuity Brands Posts Earnings Reports

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