Markets

Campbell Soup organic sales fall as dispute with Walmart continues

Campbell Soup on Friday reported a 2 percent drop in organic net sales in its second quarter as a key customer in North America placed fewer orders for its canned soups. Shares of the world’s biggest soup maker fell 2.1 percent to $46.70 in premarket trading. Fewer orders from Walmart have weighed on Campbell’s earnings in the reported quarter and could be a major reason for a decline in sales of canned soups in the U.S., RBC Capital Markets analyst David Palmer wrote in a pre-earnings note. Organic sales in the company’s Americas simple meals and beverages unit, which make canned soups and V8 juices, fell 4 percent. Still, the company reported net sales that beat estimates marginally helped by a rise in demand for its Pepperidge Farm Snacks. Net earnings attributable to ...

Stocks making the biggest moves premarket: KO, KHC, CPB, DE, SJM, WYNN & more

Check out which companies are making headlines before the bell: Coca-Cola – The beverage giant beat estimates by a penny a share, with adjusted quarterly profit of 39 cents per share. Revenue also topped forecasts. Overall revenue was down as the company sells off its bottling operations, but organic sales growth increased by a better-than-expected 6 percent. Kraft Heinz – The food company missed estimates by 5 cents a share, with adjusted quarterly profit of 90 cents per share. Revenue fell short of estimates, as well. Kraft Heinz said its 2017 performance did not reflect either its progress or its potential. Campbell Soup – Campbell beat estimates by 19 cents a share, with adjusted profit of $1 per share. Revenue was also above forecasts, but organic sales fell by 2 percent and the compa...

Supply constraints to weigh on Kraft Heinz first-quarter results

Kraft Heinz’s said stiff competition and a supply shortfall of one of its key frozen products will continue to hurt sales in the first quarter, following lower-than-expected sales and profit in the latest reported quarter. The company’s shares fell 7 percent to their lowest since August 2015. More competition in developed markets and a supply shortfall of its Ore-Ida branded potato-based frozen foods are among reasons why the company is cautious about short-term revenue growth, Chief Exectuive Officer Bernardo Hees said on a call with analysts. A surge in the number of Americans buying fresher and healthier products have put packaged food makers including Kraft Heinz in a spot. While these companies have tried to promote their healthier products, they have often failed to gain ...

Weak US demand weighs on Kraft Heinz’s revenue

Kraft Heinz’s quarterly revenue missed analysts’ expectations on Friday on weakening demand from retailers in the United States for processed foods such as peanuts and cheese. The company, which owns brands such as Velveeta cheese and Heinz ketchup, said net sales inched up 0.3 percent to $6.88 billion in the fourth quarter ended Dec. 30. Analysts on average were expecting revenue of $6.92 billion, according to Thomson Reuters I/B/E/S. Kraft Heinz’s U.S. sales fell 1.1 percent to $4.79 billion, declining for the seventh straight quarter and also missing the $4.81 billion average estimate of two analysts.

Coca-Cola beats earnings, as Coke Zero and other new drinks offset flat volume

Coca-Cola beat analysts’ expectations on the top and bottom lines on Friday, as bets on new launches like Coke Zero helped counter shifts away from its core beverages. Here’s how the company did compared with expectations in a survey of analysts by Thomson Reuters: EPS: 39 cents vs. the expected 38 cents. Revenue: $7.51 billion vs. $7.37 billion. Organic sales growth: 6 percent vs. 3.65 percent. Coca-Cola’s net revenue declined 20 percent for the quarter. The company attributed that to headwinds from its efforts to refranchise its bottling operations. Organic sales, which excludes the the impacts of those efforts along with other changes, were up 6 percent for the quarter. Earnings in the latest period were hurt by a $3.6 billion one-time charge related to new U.S. tax la...

Coca-Cola beats analysts’ estimates on the top and bottom line

Coca-Cola beat analysts’ expectations on the top and bottom line on Friday, as it continues to use levers like pricing to counter shifts in consumer tastes away from its core beverages. Here’s how the company did compared with what Wall Street expected: EPS: 39 cents vs. 38 cents expected according to Thomson Reuters Revenue: $7.51 billion vs. $7.37 billion expected according to Thomson Reuters Organic sales growth: 6 percent vs. 3.65 percent, according to Thomson Reuters Coca-Cola’s net revenue declined 20 percent for the quarter, which it attributed to headwinds from its efforts to re-franchise its bottling operations. Organic sales, which excludes the impacts of foreign exchange and other changes, were up 6 percent for the quarter. Earnings in the latest period were hu...

Two weeks after markets freaked out, the worst appears to be over for now

The gut-wrenching tug of war between rising interest rates and falling stock prices seems to be taking a rest, and strategists say the worst of the February correction may be over for now. Stocks closed out their fifth day of gains, with the S&P 500 now just 4.9 percent away from its all-time high. Its sudden and swift correction of just over 10 percentlasted all of nine trading days. The S&P gained 1.2 percent Thursday, closing at 2,731, about 9 points above the technically important 50-day moving average. But strategists say they are more comfortable that the quick comeback of the market could be signaling a now more stable market — but a more volatile one. “I think we’ve seen the low, but I don’t know if we make a new high,” said Bob Doll, chief equity st...

Stocks making the biggest moves after hours: Shake Shack, CBS, TrueCar & more

Check out the companies making headlines after the bell Thursday: Shake Shack shares fell 4 percent in extended trading. The fast-casual restaurant chain announced earnings and revenues that surpassed Wall Street predictions. Same-store sales increased by 8 percent, despite predictions of sales falling 1 percent. The company’s forecast for the upcoming quarter is weak. The past year was a big one for new store openings. 16 stores were opened in the fourth quarter and 45 were opened within the full year. The company has a goal to open 32-34 domestic and 16 international stores in the upcoming year. Shares of CBS rose 3 percent before settling back to its closing price after hours. The broadcast media company reported earnings that beat expectations on top and bottom lines. CEO Leslie ...

Shooting Statistical Delusions

Reader PeakTrader writes: Mass shootings peaked when Bill Clinton assualted women in the ‘90s. When such assertions are made, it is usually useful to refer to data. I do not see a peak in 1992-2000. I see a peak right now. Figure 1: Mass shooting count. February observation for data through 2/14. Light green shading denotes Clinton administration. Orange shading denotes 2017 onward. Source: Mother Jones, news accounts for 2/14, and author’s calculations. Figure 2: Mass shooting fatalities (red), and injured (pink). February observation for data through 2/14. Light green shading denotes Clinton administration. Orange shading denotes 2017 onward. Source: Mother Jones, news accounts for 2/14, and author’s calculations.

Companies buying back stock at record pace since Trump tax bill may aid market’s comeback

Since President Donald Trump signed the tax bill, companies have announced about $170.8 billion in stock buybacks, the most ever for this early in the year. “There’s a whole stock pile of cash that just came back. Take Cisco. We know they had $68 billion trapped overseas, and they’re going to take $25 billion of that and buy back stock,” said Art Hogan, chief market strategist at B. Riley FBR. Birinyi Associates, which has tracked buybacks since the 1980s, said this year’s level, from Jan. 1 through Feb. 15, is the most ever, topping $147.2 billion in the period of 2016, which had been the busiest at this point of the year. During that period of 2016, the market was working its way out of a roughly 14 percent correction. “It acts as a floor, you have a n...

Shake Shack beats on earnings, forecasts massive expansion in 2018

Shares of Shake Shack whipsawed after the closing bell on Thursday after the company posted better-than-expected fourth-quarter earnings, but provided cautious sales guidance. The stock was up as much as 5.3 percent before it turned negative, slipping 4 percent. The sudden stock downturn was likely the result of the company providing weaker revenue and same-store sales forecasts than analysts had expected. The company said that it expects same-store sales to be flat in 2018 due to a 1.5 to 2 percent menu price hike it made in December 2017. It also forecast total revenue for the year to be between $444 million and $448 million. Analysts had modeled revenue of $461.09 million, according to Thomson Reuters consensus. “We’re remaining cautious,” CEO Randy Garutti said during...

Steve Schwarzman Should Really Avoid Talking About “The Real World”

A lot of people say a lot of things when markets get volatile. It’s something of a parlor game to tailor a hot-take so scintillating yet digestible enough to make the shakers take notice of your opinion and then move things in your favor. Volatility also begets media visits from the bold-faced names of Wall Street. And while they usually couch it in some kind of other reason (usually “a favorite charity”) the biggest CEOs will always make their ways in front of a camera to pitch their reality book when things get scary. So it was hardly a surprise when Steve Schwarzman appeared on Squawk Box this morning and made Joe Kernen pretend for 7 minutes that he gives a solitary shit about public school funding. What did give our brow a raise however was The Schwarz’s myopically tone-deaf choice of...