Pinterest plunges after earnings but Wall Street analysts are sticking with the stock

Wall Street analysts are sticking with Pinterest despite a very rocky first earnings report Thursday after the bell. Analysts at UBS noted Pinterest is in a, “unique position,” in its space and reiterated its confidence in the company’s ability to execute over the long haul. “While its initial earnings report & forward commentary were roughly inline with Street estimates, we still see signs that PINS long-term narrative is solidly intact,” wrote UBS analyst Eric Sheridan in his recap not to clie


Wall Street analysts are sticking with Pinterest despite a very rocky first earnings report Thursday after the bell. Analysts at UBS noted Pinterest is in a, “unique position,” in its space and reiterated its confidence in the company’s ability to execute over the long haul. “While its initial earnings report & forward commentary were roughly inline with Street estimates, we still see signs that PINS long-term narrative is solidly intact,” wrote UBS analyst Eric Sheridan in his recap not to clie
Pinterest plunges after earnings but Wall Street analysts are sticking with the stock Cached Page below :
Company: cnbc, Activity: cnbc, Date: 2019-05-17  Authors: michael bloom
Keywords: news, cnbc, companies, plunges, analyst, ubs, stock, street, pinterest, wall, analysts, report, intact, view, trading, earnings, wasnt, sticking


Pinterest plunges after earnings but Wall Street analysts are sticking with the stock

Wall Street analysts are sticking with Pinterest despite a very rocky first earnings report Thursday after the bell. The social media platform posted a much bigger loss than many expected.

Most analysts feel the social media company, which went public last month, is on the right track and said to use the pullback as an opportunity to buy the shares.

“The stock could remain volatile near term, but management laid out a compelling roadmap that should ensure ongoing strong revenue growth and a route to attractive profitability over the medium term,” Atlantic Equities analyst James Cordwell said.

Shares plunged 15% in premarket trading Friday to $25.79, still above the stock’s $19 IPO price but just around its closing price on its first day of trading of $24.40.

The negative earnings headlines were mostly, “noise,” according to Baird analysts.

“Overall, fundamentals are intact, and we view significant near-term weakness as an attractive buying opportunity,” analyst Colin Sebastian said.

Analysts at UBS noted Pinterest is in a, “unique position,” in its space and reiterated its confidence in the company’s ability to execute over the long haul.

“While its initial earnings report & forward commentary were roughly inline with Street estimates, we still see signs that PINS long-term narrative is solidly intact,” wrote UBS analyst Eric Sheridan in his recap not to clients.

One analyst admitted the earnings report wasn’t great but wasn’t backing down from his buy rating.

“Though the headline outlook may have missed the mark, we believe expectations have been broadly reset for the rest of the year and our view on the long-term drivers of the business remain intact (and actually pulled in a bit),” Nomura analyst Mark Kelley said.

Here are what the major analysts are saying about Pinterest earnings:


Company: cnbc, Activity: cnbc, Date: 2019-05-17  Authors: michael bloom
Keywords: news, cnbc, companies, plunges, analyst, ubs, stock, street, pinterest, wall, analysts, report, intact, view, trading, earnings, wasnt, sticking


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US-China trade war worries caused analysts to bail on these stocks

The ramifications of the U.S.-China trade war are being felt far and wide. Now, the dispute is causing Wall Street analysts to take drastic measures and remove their buy ratings on stocks in their coverage universes. They include stocks like Owens Corning, American Eagle, Melco Resorts, Duke Realty, G-III, Steven Madden and China Southern Airlines. This week Piper Jaffray decided it had seen enough and downgraded Steven Madden and G-III Apparel over the dispute. The feeling was mutual over at We


The ramifications of the U.S.-China trade war are being felt far and wide. Now, the dispute is causing Wall Street analysts to take drastic measures and remove their buy ratings on stocks in their coverage universes. They include stocks like Owens Corning, American Eagle, Melco Resorts, Duke Realty, G-III, Steven Madden and China Southern Airlines. This week Piper Jaffray decided it had seen enough and downgraded Steven Madden and G-III Apparel over the dispute. The feeling was mutual over at We
US-China trade war worries caused analysts to bail on these stocks Cached Page below :
Company: cnbc, Activity: cnbc, Date: 2019-05-16  Authors: michael bloom
Keywords: news, cnbc, companies, tariff, trade, worries, madden, stocks, wide, week, uschina, american, caused, bail, analysts, eagle, giii, war


US-China trade war worries caused analysts to bail on these stocks

The ramifications of the U.S.-China trade war are being felt far and wide. Now, the dispute is causing Wall Street analysts to take drastic measures and remove their buy ratings on stocks in their coverage universes.

Companies feeling the heat cover a wide range of sectors and it appears almost no one is being spared. They include stocks like Owens Corning, American Eagle, Melco Resorts, Duke Realty, G-III, Steven Madden and China Southern Airlines.

While the S&P 500 hit an all-time closing high in April, it’s now down more than 2% this month due to the ongoing trade escalation.

The retail sector is one group widely believed to be among the most vulnerable to tariffs, according to many analysts.

This week Piper Jaffray decided it had seen enough and downgraded Steven Madden and G-III Apparel over the dispute. “We are downgrading SHOO & GIII from OW to Neutral as tariff rhetoric accelerates across our group weighing on names that have large U.S. businesses & a disproportionate share of production in China,” analyst Erinn Murphy said.

“Even if there is tariff relief in the next month–we are not certain we’ll see a full recovery of the multiples,” she said.

Steven Madden is down more than 2% while G-III has fallen more than 13% this week.

The feeling was mutual over at Wedbush where analyst Jen Redding downgraded American Eagle Outfitters.

“Although we continue to remain bullish on American Eagle over the long term, we now have less conviction in runway for shares as we approach our price target in what we view as an increasingly volatile retail environment, until investor visibility into a US-China trade settlement improves, and are stepping to the sidelines for now,” she said.

Shares are down more than 6% this week.


Company: cnbc, Activity: cnbc, Date: 2019-05-16  Authors: michael bloom
Keywords: news, cnbc, companies, tariff, trade, worries, madden, stocks, wide, week, uschina, american, caused, bail, analysts, eagle, giii, war


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Cisco rises on strong revenue guidance

Cisco said it expects 4.5% to 6.5% revenue growth in its fiscal fourth quarter, and earnings of 80 cents to 82 cents per share. Analysts surveyed by Refinitiv were looking for $13.29 billion in revenue, or 3.5% revenue growth, and 81 cents per share. Heading into the earnings report, some analysts suggested that Cisco is continuing to see strong results from its Catalyst 9000-series switches. In the fiscal third quarter Cisco saw enterprise revenue go up 9%, commercial revenue rise 5% and public


Cisco said it expects 4.5% to 6.5% revenue growth in its fiscal fourth quarter, and earnings of 80 cents to 82 cents per share. Analysts surveyed by Refinitiv were looking for $13.29 billion in revenue, or 3.5% revenue growth, and 81 cents per share. Heading into the earnings report, some analysts suggested that Cisco is continuing to see strong results from its Catalyst 9000-series switches. In the fiscal third quarter Cisco saw enterprise revenue go up 9%, commercial revenue rise 5% and public
Cisco rises on strong revenue guidance Cached Page below :
Company: cnbc, Activity: cnbc, Date: 2019-05-15  Authors: jordan novet
Keywords: news, cnbc, companies, rises, cents, analysts, business, share, robbins, cisco, quarter, guidance, fiscal, billion, strong, revenue


Cisco rises on strong revenue guidance

Cisco’s Chairman and CEO Chuck Robbins speaks to participants during the Viva Technologie show at Parc des Expositions Porte de Versailles in Paris on May 24, 2018.

Cisco shares rose as much as 3% after hours on Wednesday after the company reported better-than-expected earnings for the third quarter of its 2019 fiscal year, which ended on April 27, and strong revenue guidance.

Here are the key numbers:

Earnings: 78 cents per share, excluding certain items, vs. 77 cents per share as expected by analysts, according to Refinitiv.

78 cents per share, excluding certain items, vs. 77 cents per share as expected by analysts, according to Refinitiv. Revenue: $12.96 billion, vs. $12.89 billion as expected by analysts, according to Refinitiv.

Revenue was up 4% year over year, according to a statement.

Cisco said it expects 4.5% to 6.5% revenue growth in its fiscal fourth quarter, and earnings of 80 cents to 82 cents per share. Analysts surveyed by Refinitiv were looking for $13.29 billion in revenue, or 3.5% revenue growth, and 81 cents per share.

CEO Chuck Robbins addressed the subject of how tariffs could affect Cisco’s business during a Wednesday conference call with analysts.

“We see very minimal impact this point based on all the great work the teams have done, and it is absolutely baked into our guide going forward,” Robbins said.

The majority of Cisco’s business comes from selling networking software and hardware, including switches and routers that are kept inside corporate data centers. This market is represented in Cisco’s Infrastructure Platforms business segment, which contributed $7.55 billion in revenue, beating the $7.46 billion consensus estimate among analysts polled by FactSet.

The company’s Applications business segment, which includes AppDynamics and conferencing products, generated $1.43 billion in revenue, lower than the $1.50 billion FactSet analyst estimate.

The Security business segment, featuring among things the recently acquired Duo Security, had revenue of $707 million, up 21% and above the FactSet estimate of $676 million.

Heading into the earnings report, some analysts suggested that Cisco is continuing to see strong results from its Catalyst 9000-series switches.

“We believe the Catalyst 9000 refresh remains in the early innings,” Nomura Instinet analysts led by Jeffrey Kvaal said in a note distributed to clients last week. “In our survey, we found that 11% of respondents have upgraded and 16% expect to do so in the next 12 months. This refresh is now nearly two years old. This suggests the refresh has yet to hit the steepest part of the adoption curve.”

This time last year, though, the Catalyst 9000 line was seeing a pickup in adoption, setting the stage for tough comparisons in the fiscal fourth quarter, Piper Jaffray analysts James Fish and Andrew Nowinski wrote in a note distributed to clients on Monday.

And Cisco’s conversations with customers around upgrading could open up the door for them to move to other vendors’ products.

“Both our CIO survey and calls indicate some discomfort with a price hike from Cisco – at least a perceived one,” the Nomura Instinet analysts wrote. Some customers are choosing to open up the refresh to bids from rival vendors. Others are using the perceived price hike and shift to software as a mechanism for reducing price on the traditional systems business. Both Juniper and Arista have indicated their enterprise businesses are growing faster than the overall market. ”

There are also broader challenges for Cisco to confront.

“Public partners and results across public IT peers suggest a general Enterprise pause in spending at a minimum is occurring, if not a full Enterprise cycle slowdown,” Fish and Nowinski wrote.

In the fiscal third quarter Cisco saw enterprise revenue go up 9%, commercial revenue rise 5% and public sector revenue grow 10%. Service provider revenue fell 13% in that period. Robbins said the service provider category is the only one where he saw a change in economic conditions.

Cisco stock is up 15% since the beginning of 2019. In the fiscal third quarter Cisco announced initiatives with Alphabet’s Google Station Wi-Fi initiative and SoftBank.

WATCH: Watch CNBC’s full interview with Cisco CEO Chuck Robbins


Company: cnbc, Activity: cnbc, Date: 2019-05-15  Authors: jordan novet
Keywords: news, cnbc, companies, rises, cents, analysts, business, share, robbins, cisco, quarter, guidance, fiscal, billion, strong, revenue


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Wall Street analysts are sticking by these stocks hit hard by the trade war

The Dow dropped a s much 719 points on Monday as the trade war continued its escalation but is higher in early trading on Tuesday. CNBC did a deep dive through sell-side stock research since the trade war escalated to find companies that analysts are singling out in their respective coverage universes. Wall Street analysts aren’t backing down from their buy ratings on stocks that have been hit hard in the latest trade battle between the U.S. and China. Wall Street will be watching Alibaba’s earn


The Dow dropped a s much 719 points on Monday as the trade war continued its escalation but is higher in early trading on Tuesday. CNBC did a deep dive through sell-side stock research since the trade war escalated to find companies that analysts are singling out in their respective coverage universes. Wall Street analysts aren’t backing down from their buy ratings on stocks that have been hit hard in the latest trade battle between the U.S. and China. Wall Street will be watching Alibaba’s earn
Wall Street analysts are sticking by these stocks hit hard by the trade war Cached Page below :
Company: cnbc, Activity: cnbc, Date: 2019-05-14  Authors: michael bloom
Keywords: news, cnbc, companies, war, sticking, buy, analysts, wall, earnings, trade, hard, street, tariffs, services, hit, chinese, china, company, stocks


Wall Street analysts are sticking by these stocks hit hard by the trade war

Apple CEO Tim Cook attends the annual session of China Development Forum (CDF) 2018 at the Diaoyutai State Guesthouse in Beijing, China March 26, 2018.

The Dow dropped a s much 719 points on Monday as the trade war continued its escalation but is higher in early trading on Tuesday.

CNBC did a deep dive through sell-side stock research since the trade war escalated to find companies that analysts are singling out in their respective coverage universes.

Wall Street analysts aren’t backing down from their buy ratings on stocks that have been hit hard in the latest trade battle between the U.S. and China. While the two countries continue slapping tariffs on each other, many analysts say clients should use the market weakness as a time to buy these beaten down shares because the risks are overblown.

Wall Street will be watching Alibaba’s earnings report on Wednesday for any signs of the trade war effect on the Chinese e-commerce giant.

The most recent actions by the White House have brought “greater uncertainty,” to the company, but SunTrust analysts are sticking with their buy rated call. “The latest data out of National Bureau of Statistics of China suggests that the macro environment has been improving, a positive for Chinese consumption, and for BABA in particular,” analyst Youssef Squali said.

“Long term we view BABA as a winner considering 1) its dominance of the Chinese ecom. mkt and the insatiable appetite for China’s growing middle class, 2) it’s a 25%+ compounder over the next 5 yrs (our ests), and 3) its portfolio of strategic invests,” he added.

Shares of the company are down 4% over the last week.

Apple has also been hit hard by the ongoing trade uncertainty, but Wedbush analysts say things might not be as bad as they appear.

“That said, for Apple in particular we believe the way things stand today the bark will be worse than the bite for Cupertino around China headwinds and we would be buyers of the name on weakness,” said analyst Dan Ives who’s keeping his outperform rating on the stock.

Apple, which was the worst performer on the Dow on Monday, is down more than 8% over the last week.

Despite the trade dispute, Credit Suisse analysts are not backing down from their calls on some business services stocks.

Alarm.com, provides cloud services for remote control home monitoring services and has an outperform rating at the firm.

The company recently reported earnings and stated that tariffs were indeed having an effect.

“ALRM highlighted on its most recent earnings call that higher tariffs have modestly impacted hardware sales,” analyst Kevin McVeigh said.

The stock is down more than 15% over the last week.

Here are other buy-rated stocks analysts are sticking by in the trade war:


Company: cnbc, Activity: cnbc, Date: 2019-05-14  Authors: michael bloom
Keywords: news, cnbc, companies, war, sticking, buy, analysts, wall, earnings, trade, hard, street, tariffs, services, hit, chinese, china, company, stocks


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Apple would need to raise iPhone prices significantly to offset next tariffs, analysts say

If President Donald Trump decides to slap tariffs on the remaining billions of dollars worth of Chinese goods, Apple may need to raise iPhone prices significantly to offset the higher costs of parts, according to Wall Street analysts. The bank broke down the costs of making and selling the iPhone XS with no tariffs, which is about $1,000, versus what it would cost if a 25% tariff hits China-made parts. Moving iPhone production exclusively to America is an option for Apple, Bank of America Merril


If President Donald Trump decides to slap tariffs on the remaining billions of dollars worth of Chinese goods, Apple may need to raise iPhone prices significantly to offset the higher costs of parts, according to Wall Street analysts. The bank broke down the costs of making and selling the iPhone XS with no tariffs, which is about $1,000, versus what it would cost if a 25% tariff hits China-made parts. Moving iPhone production exclusively to America is an option for Apple, Bank of America Merril
Apple would need to raise iPhone prices significantly to offset next tariffs, analysts say Cached Page below :
Company: cnbc, Activity: cnbc, Date: 2019-05-14  Authors: maggie fitzgerald
Keywords: news, cnbc, companies, worth, analysts, need, offset, price, apple, tariff, raise, say, america, cost, tariffs, costs, bank, prices, iphone, significantly


Apple would need to raise iPhone prices significantly to offset next tariffs, analysts say

If President Donald Trump decides to slap tariffs on the remaining billions of dollars worth of Chinese goods, Apple may need to raise iPhone prices significantly to offset the higher costs of parts, according to Wall Street analysts.

“We estimate a price increase of around 14% is required to absorb the impact of a 25% tariff, keeping margin dollars for all players in the supply chain constant,” J.P. Morgan said in a note to clients Tuesday.

The bank broke down the costs of making and selling the iPhone XS with no tariffs, which is about $1,000, versus what it would cost if a 25% tariff hits China-made parts. That would take the iPhone’s retail price up to $1,142, the firm calculates.

Although Trump has not decided to slap tariffs on an additional $300 billion worth of Chinese goods, the Office of the U.S. Trade Representative formally began the approval process on Monday. The earliest the new tariffs could go into place would be June 24.

Moving iPhone production exclusively to America is an option for Apple, Bank of America Merrill Lynch said Tuesday. The bank estimates a 20% price increase to the iPhone if 100% of the phone is manufactured in the U.S.

“We estimate the incremental cost of manufacturing iPhones in the U.S. could be 15-25%, and, if passed on to consumers could lead to demand destruction, in our view,” the Bank of America said in a note.

But J.P. Morgan said Apple is more likely to absorb the cost of tariffs and take a hit on its earnings rather than raise the price of the phone. The bank estimates a total iPhone gross margin decrease of 4% if Apple doesn’t pass the tariff costs on to customers.

Apple’s stock is down more than 11% since the start of the trade war on May 2.

— With reporting by Michael Bloom.


Company: cnbc, Activity: cnbc, Date: 2019-05-14  Authors: maggie fitzgerald
Keywords: news, cnbc, companies, worth, analysts, need, offset, price, apple, tariff, raise, say, america, cost, tariffs, costs, bank, prices, iphone, significantly


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Chevron, the loser in the Anadarko buyout battle, is actually a winner on Wall Street

Michael Wirth, CEO of Chevron, speaking at the 2019 WEF in Davos, Switzerland on Jan. 23rd, 2019. Occidental Petroleum may have spoiled Chevron’s plans to acquire oil and gas driller Anadarko Petroleum, but Wall Street is not pronouncing the oil company the loser in the buyout battle. Several analysts are commending Chevron for declining to counter Occidental’s $38 billion bid for Anadarko. Chevron not only walks away with a $1 billion breakup fee, but showed investors it won’t sacrifice its bud


Michael Wirth, CEO of Chevron, speaking at the 2019 WEF in Davos, Switzerland on Jan. 23rd, 2019. Occidental Petroleum may have spoiled Chevron’s plans to acquire oil and gas driller Anadarko Petroleum, but Wall Street is not pronouncing the oil company the loser in the buyout battle. Several analysts are commending Chevron for declining to counter Occidental’s $38 billion bid for Anadarko. Chevron not only walks away with a $1 billion breakup fee, but showed investors it won’t sacrifice its bud
Chevron, the loser in the Anadarko buyout battle, is actually a winner on Wall Street Cached Page below :
Company: cnbc, Activity: cnbc, Date: 2019-05-09  Authors: tom dichristopher
Keywords: news, cnbc, companies, chevron, occidental, street, actually, offer, battle, petroleum, loser, bid, winner, billion, analysts, wall, oil, share, buyout, anadarko


Chevron, the loser in the Anadarko buyout battle, is actually a winner on Wall Street

Michael Wirth, CEO of Chevron, speaking at the 2019 WEF in Davos, Switzerland on Jan. 23rd, 2019.

Occidental Petroleum may have spoiled Chevron’s plans to acquire oil and gas driller Anadarko Petroleum, but Wall Street is not pronouncing the oil company the loser in the buyout battle.

Several analysts are commending Chevron for declining to counter Occidental’s $38 billion bid for Anadarko. Chevron not only walks away with a $1 billion breakup fee, but showed investors it won’t sacrifice its budget sheet in a bidding war, the analysts say.

The San Ramon, California-based energy giant was under pressure to hike its original $65 per share offer into the $70s after the underdog Occidental sweetened its offer this week. For Occidental, funding a $76 per share bid relied in part on agreeing to a steep 8% annual payout to Warren Buffett in order to secure a $10 billion investment from the Oracle of Omaha.


Company: cnbc, Activity: cnbc, Date: 2019-05-09  Authors: tom dichristopher
Keywords: news, cnbc, companies, chevron, occidental, street, actually, offer, battle, petroleum, loser, bid, winner, billion, analysts, wall, oil, share, buyout, anadarko


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Lyft posts large loss in its first quarterly report as a public company

Lyft reported a huge loss for its first quarterly earnings report as a public company Tuesday, but said it made strides in growing its active ridership. The steep loss still marks an improvement from Lyft’s year-ago quarter, when Lyft reported a non-GAAP loss of $11.40 per share. On a call with analysts following the report, Chief Financial Officer Brian Roberts said Lyft anticipates that losses will peak in 2019. For its second quarter, Lyft said it expects to report revenue between $800 millio


Lyft reported a huge loss for its first quarterly earnings report as a public company Tuesday, but said it made strides in growing its active ridership. The steep loss still marks an improvement from Lyft’s year-ago quarter, when Lyft reported a non-GAAP loss of $11.40 per share. On a call with analysts following the report, Chief Financial Officer Brian Roberts said Lyft anticipates that losses will peak in 2019. For its second quarter, Lyft said it expects to report revenue between $800 millio
Lyft posts large loss in its first quarterly report as a public company Cached Page below :
Company: cnbc, Activity: cnbc, Date: 2019-05-07  Authors: lauren feiner
Keywords: news, cnbc, companies, quarter, lyfts, quarterly, public, posts, large, revenue, analysts, market, report, lyft, company, million, loss


Lyft posts large loss in its first quarterly report as a public company

Lyft President John Zimmer (R) and CEO Logan Green speak as Lyft lists on the Nasdaq at an IPO event in Los Angeles March 29, 2019.

Lyft reported a huge loss for its first quarterly earnings report as a public company Tuesday, but said it made strides in growing its active ridership. The stock fluctuated following the report but was down about 1% after executives’ call with analysts.

Here’s how Lyft’s report compared to analyst expectations for its first-quarter of 2019:

Loss per share: $9.02, adjusted

$9.02, adjusted Revenue: $776 million, versus $739.4 million expected, per Refinitiv

While analysts’ non-comparable estimate of a $1.81 loss per share for Lyft’s first quarter per Refinitiv’s survey of analysts could have been on the low-end due to a lack of data typical of a company fresh on the public market, Lyft’s loss is still significant. Earnings estimates from Refinitiv were also based only on nine analysts, who estimated losses anywhere between $0.63 and $4.73 per share.

The steep loss still marks an improvement from Lyft’s year-ago quarter, when Lyft reported a non-GAAP loss of $11.40 per share. On a call with analysts following the report, Chief Financial Officer Brian Roberts said Lyft anticipates that losses will peak in 2019.

For its second quarter, Lyft said it expects to report revenue between $800 million and $810 million. It guided total revenue between $3.275 billion and $3.3 billion for the full fiscal year.

Despite the skepticism on the public exchange, Lyft has continued to grow its user base over the first quarter of its fiscal year. The company said it had 20.5 million active riders in the quarter compared to 14 million in the first quarter of 2018. It also saw increased revenue per active rider at $37.86 compared to $28.27 for during the same quarter last year.

Around the time of Lyft’s report, Alphabet’s self-driving car company Waymo announced a new partnership with Lyft in a Medium post. Over the next few months, Waymo said it would deploy 10 of its vehicles on Lyft in the Phoenix area. Riders in the area will be able to select Waymo as an option from their Lyft app for some rides, Waymo wrote.

The announcement could mark a significant step for Lyft, which like other ride-hailing companies including Uber, gives up a significant portion of revenue to its drivers. Analysts have suggested that automation is a key step for either of these companies to reach profitability. Lyft is also developing its own self-driving cars.

Lyft had a rocky start to trading, down more than 20% over the last month and nearly $13 off of its IPO price of $72 per share. The company debuted with a valuation topping $20 billion at the high end of its expected range, but its market cap has since sunk to about $17 billion.

Lyft’s performance has been closely watched as its larger rival Uber prepares to go public later this week. But while Lyft focuses primarily on transportation, Uber has other businesses including food delivery, freight and plans for flying vehicles.

Executives said on the call with analysts that the competitive pressure in the market seems to be improving, meaning they can begin reducing driver incentives.

“Lyft is about seven years old and if you look at the economics, you can see that as a percentage of revenue that this is the most rational the market has been,” said President John Zimmer.

Now that there are two strong players in the market that can both pickup riders in roughly the same amount of time in the same major markets, Zimmer said, the decision between the two comes down to brand preference.

Correction: This story has been updated to reflect Lyft reported $776 million in revenue for the first quarter. A previous version said it reported $779 million.

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Company: cnbc, Activity: cnbc, Date: 2019-05-07  Authors: lauren feiner
Keywords: news, cnbc, companies, quarter, lyfts, quarterly, public, posts, large, revenue, analysts, market, report, lyft, company, million, loss


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Despite Brexit uncertainty, some analysts are turning bullish on UK assets

Sterling and U.K. equities, particularly banks, are offering a surprisingly positive outlook, market experts told CNBC Friday. In a press conference following the announcement, Governor Mark Carney hinted at future rate hikes, striking a slightly more hawkish tone despite ongoing uncertainty over the U.K.’s departure from the European Union. If Brexit was put aside, however, and investment growth in the U.K. was to ramp up again, the BOE “might turn a little more hawkish,” he told CNBC’s “Squawk


Sterling and U.K. equities, particularly banks, are offering a surprisingly positive outlook, market experts told CNBC Friday. In a press conference following the announcement, Governor Mark Carney hinted at future rate hikes, striking a slightly more hawkish tone despite ongoing uncertainty over the U.K.’s departure from the European Union. If Brexit was put aside, however, and investment growth in the U.K. was to ramp up again, the BOE “might turn a little more hawkish,” he told CNBC’s “Squawk
Despite Brexit uncertainty, some analysts are turning bullish on UK assets Cached Page below :
Company: cnbc, Activity: cnbc, Date: 2019-05-03  Authors: elliot smith
Keywords: news, cnbc, companies, uncertainty, bullish, brexit, assets, strategy, growth, turning, told, hawkish, surprisingly, despite, analysts, market, uk, banks, sterling


Despite Brexit uncertainty, some analysts are turning bullish on UK assets

Sterling and U.K. equities, particularly banks, are offering a surprisingly positive outlook, market experts told CNBC Friday.

The Bank of England (BOE) held interest rates steady Thursday while revising up its GDP (gross domestic product) growth forecasts for 2019 on the back of strong first-quarter data. In a press conference following the announcement, Governor Mark Carney hinted at future rate hikes, striking a slightly more hawkish tone despite ongoing uncertainty over the U.K.’s departure from the European Union.

HSBC Global Head of Foreign Exchange Strategy David Bloom said a substantial dovish slant in the market meant it was refusing to price in more hawkish signals from central banks. If Brexit was put aside, however, and investment growth in the U.K. was to ramp up again, the BOE “might turn a little more hawkish,” he told CNBC’s “Squawk Box Europe” Friday.

“We’re quite bullish on sterling actually, as we think it’s got plenty of room to rise against the dollar,” Bloom said.

Sterling closed trading at just over $1.30 Thursday, but HSBC’s currency strategy team has forecast it to reach $1.37 by the end of 2019.

On the equity front, EY Global Assurance Leader Keith Pogson said U.K. banks were surprisingly well positioned to navigate the political uncertainty across major European economies.


Company: cnbc, Activity: cnbc, Date: 2019-05-03  Authors: elliot smith
Keywords: news, cnbc, companies, uncertainty, bullish, brexit, assets, strategy, growth, turning, told, hawkish, surprisingly, despite, analysts, market, uk, banks, sterling


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One ‘catch-the-falling-knife’ sector play could be a buying opportunity, Wells Fargo strategist says

The sharp sell-off has one strategist changing his tune on the sector. “We had, for a multiyear period, been underweight energy and that worked out really well,” Wells Fargo senior global equity strategist Scott Wren said Thursday on CNBC’s “Trading Nation ” show. Wells Fargo changed its sector allocation on energy to favorable from unfavorable on April 24. Since then, the XLE energy ETF has fallen 7%. Aside from energy, Wren favors financials, industrials, tech and consumer discretionary.


The sharp sell-off has one strategist changing his tune on the sector. “We had, for a multiyear period, been underweight energy and that worked out really well,” Wells Fargo senior global equity strategist Scott Wren said Thursday on CNBC’s “Trading Nation ” show. Wells Fargo changed its sector allocation on energy to favorable from unfavorable on April 24. Since then, the XLE energy ETF has fallen 7%. Aside from energy, Wren favors financials, industrials, tech and consumer discretionary.
One ‘catch-the-falling-knife’ sector play could be a buying opportunity, Wells Fargo strategist says Cached Page below :
Company: cnbc, Activity: cnbc, Date: 2019-05-03  Authors: keris lahiff
Keywords: news, cnbc, companies, earnings, catchthefallingknife, wells, wren, strategist, sp, fargo, opportunity, sector, really, xle, underweight, market, analysts, play, buying, energy


One 'catch-the-falling-knife' sector play could be a buying opportunity, Wells Fargo strategist says

Energy stocks are at the bottom of the barrel.

The sector has slipped 4% in the past month, the worst performer of the S&P 500, shut out of the broad market rally that pushed the index to new highs.

The sharp sell-off has one strategist changing his tune on the sector.

“We had, for a multiyear period, been underweight energy and that worked out really well,” Wells Fargo senior global equity strategist Scott Wren said Thursday on CNBC’s “Trading Nation ” show. “But recently here, if you look at things like return on equity, … if you look at things like the energy sector dropped to being only 5% of the total market cap of the S&P 500 which is really a multidecade low, we had felt that our underweight position was no longer warranted.”

Wells Fargo changed its sector allocation on energy to favorable from unfavorable on April 24. Since then, the XLE energy ETF has fallen 7%.

However, Wren says investors and analysts have been too pessimistic on energy stocks, and expectations need to be recalibrated.

“When oil came off and dropped down into the mid-$40s [a barrel] last fall we thought that analysts reduced their earnings estimates way too much. They really haven’t boosted them back to reflect this close to $60+ level,” said Wren.

At the end of December, analysts surveyed by FactSet estimated full-year 2019 earnings growth on the XLE of 7%. By the beginning of May, full-year earnings estimates had been slashed to forecast a decline of 9%.

“You could make the argument that this was kind of a catch-the-falling-knife sort of call, but it looked cheap and we wanted to stick our toe in the water. So that’s what we did,” said Wren.

Aside from energy, Wren favors financials, industrials, tech and consumer discretionary. The financials, technology and discretionary sectors have outperformed the market over the past month with a gain of more than 3% compared with the S&P 500’s 2% increase; the industrials have slightly lagged overall gains with a 1% advance.


Company: cnbc, Activity: cnbc, Date: 2019-05-03  Authors: keris lahiff
Keywords: news, cnbc, companies, earnings, catchthefallingknife, wells, wren, strategist, sp, fargo, opportunity, sector, really, xle, underweight, market, analysts, play, buying, energy


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Under Armour shares soar on earnings beat and higher profit outlook

Analysts were calling for Under Armour to break even on a per-share basis, with sales of $1.18 billion, according to a Refinitiv survey. Sales in North America were down 3% during the quarter, amounting to $843 million, while international revenues grew 12%, to $328 million. Nike during its latest quarter managed to grow North American sales by 7%, for example. Like Nike, Under Armour is also trying to grow its direct-to-consumer business, which is said now represents 27% of total revenues. Appa


Analysts were calling for Under Armour to break even on a per-share basis, with sales of $1.18 billion, according to a Refinitiv survey. Sales in North America were down 3% during the quarter, amounting to $843 million, while international revenues grew 12%, to $328 million. Nike during its latest quarter managed to grow North American sales by 7%, for example. Like Nike, Under Armour is also trying to grow its direct-to-consumer business, which is said now represents 27% of total revenues. Appa
Under Armour shares soar on earnings beat and higher profit outlook Cached Page below :
Company: cnbc, Activity: cnbc, Date: 2019-05-02  Authors: lauren thomas
Keywords: news, cnbc, companies, soar, beat, quarter, sales, earnings, analysts, grew, armour, shares, revenues, north, profit, million, nike, grow, higher, outlook


Under Armour shares soar on earnings beat and higher profit outlook

Under Armour on Thursday reported quarterly earnings and sales that topped analysts’ expectations, as it sold more running shoes and cleaned up inventories, sending its stock soaring. It also raised its profit outlook for 2019.

The athletic apparel retailer reported earnings of 5 cents a share for the first quarter ended March 31 on sales of $1.21 billion. Analysts were calling for Under Armour to break even on a per-share basis, with sales of $1.18 billion, according to a Refinitiv survey.

Under Armour shares jumped more than 7% in early trading on the news. Including those gains, the stock has climbed more than 34% this year, bringing Under Armour’s market cap close to $10.6 billion.

Under Armour said it now expects annual 2019 earnings to fall within a range of 33 to 34 cents per share, compared with a prior range of 31 to 33 cents. It’s still calling for revenues to be up roughly 3% to 4% overall, with sales growth remaining “relatively flat” in North America.

Sales in North America were down 3% during the quarter, amounting to $843 million, while international revenues grew 12%, to $328 million. Under Armour said revenues from international markets now make up 27% of total sales.

The company has been grappling with how to grow U.S. sales amid a landscape flush with competition from Adidas, Nike and Lululemon. Nike during its latest quarter managed to grow North American sales by 7%, for example.

Part of Under Armour’s efforts to turn things around have included cutting staff, trimming excess inventory sitting in warehouses, and promising a bigger focus on new shoes and women’s items. Some of its best-selling footwear brands now include Project Rock, Curry 6 and the Hovr sneakers.

COO Patrik Frisk told analysts during a post-earnings conference call the brand has “stabilized” in North America, as it continues to push toward selling more at “premium” price points, thereby pulling out of some discount channels. Like Nike, Under Armour is also trying to grow its direct-to-consumer business, which is said now represents 27% of total revenues.

CEO Kevin Plank has said the Baltimore-based company plans to stay true to its “performance” gear, like moisture-wicking shirts, despite “athleisure” gaining more momentum in its home turf. Some analysts say Under Armour is struggling because the company is choosing not to pivot toward the yoga pants and casual-wear trend as much as its rivals.

“We are going to continue to get louder as a brand,” Plank said Thursday. “About telling people what … and why this brand is so special. Everything we build does something.”

Beyond Nike and Adidas, though, Under Armour faces heightened competition from “resurgent 1990s brands that appeal to a broader customer base and resonate better with women,” Telsey Advisory Group analyst Cristina Fernandez said.

Under Armour also recently lost its North American president, Jason LaRose, with COO Patrik Frisk filling the position until a replacement is found.

Apparel sales were up 1% during the first quarter, while footwear sales grew 8% thanks to a strong running business, Under Armour said. Accessories revenues were down 11% due to Under Armour selling less backpacks and bags than anticipated.

Under Armour said its inventories dropped 24%, to $875 million. It said its gross margin grew by 100 basis points, to 45.2%.

Under Armour said in a separate press release Thursday that it has adjusted its year-earlier financial results to reflect changes in how it accounts for some corporate expenses. Costs related to its headquarters and supply-chain upgrades will now be excluded from its operating segments. As a result, Under Armour said it has revised its targets for these segments to reflect the changes.


Company: cnbc, Activity: cnbc, Date: 2019-05-02  Authors: lauren thomas
Keywords: news, cnbc, companies, soar, beat, quarter, sales, earnings, analysts, grew, armour, shares, revenues, north, profit, million, nike, grow, higher, outlook


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