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Walgreens, Conagra, Constellation Brands: Earnings winners & losers

The first week of 2024 was a busy one with earnings reports out from companies including Walgreens (WBA), Conagra Brands (CAG), and Constellation Brands (STZ). Yahoo Finance breaks down the companies’ results and sat down with industry experts to discuss some of the top takeaways. Walgreens (00:00:14) Walgreens' first quarter earnings beat on both the top on bottom lines, with revenue coming in at $36.7 billion, compared to an estimated $35.04 billion, and adjusted earnings per share coming in at $0.66, compared to an expected $0.62. “The company also reiterating its full year earnings guidance, but they did slash their dividend by almost 50 percent, to $0.25 a share in an attempt to strength its balance sheet and cash position,” Yahoo Finance’s Seana Smith explains. Jefferies Healthcare Services Equity Research Brian Tanquilut discusses Walgreens' results. Tanquilut notes “it’s still obviously is not good news when a company cuts their dividend.” “We are facing a weakening consumer environment and that’s translating to obviously headwinds for them. And at the same time, they also called out continuing gross margin pressure from payers cutting reimbursement for drugs that are dispensed at their retail pharmacy.” Conagra Brands (00:01:07) Yahoo Finance’s Brooke DiPalma breaks down earnings results from Conagra Brands. The company cut its 2024 guidance, now expecting “adjusted earnings per share to be in the range of $2.60 to $2.65. That's compared to a prior projection of $2.70 to $2.75. Now it does also expect organic net sales to decrease this year, in the range of 1 to 2 percent, compared to its earlier forecast, to grow about 1 percent,” DiPalma notes. The company is also “announcing new advertising investments focused on their biggest brands,” as well as a focus on “innovation.” Constellation Brands (00:01:56) “It was a very strong result quarter for Constellation in the beer business,” Citi Vice President of Equity Research Filippo Falorni says. “The Modelo Especial brand is the largest brand in the beer division and that grew depletions, which is a measure of volumes, about 12 percent.” “There’s a strength in the overall portfolio,” Falorni notes. “The Bud Light (BUD) controversy this year was... probably the most important driver within the beer industry,” Falorni adds. But from a consumer standpoint, “Modelo Especial didn’t see as much benefit compared to… the other domestic brands, like Coors Light, Miller Lite (TAP)… From a Modelo Especial brand, a lot of the benefit was from a brand recognition.”


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Jobs Report, JOLTS, ADP: Takeaways from this week's reports

The labor market is shaking up to be the biggest story of 2024. This week's release of economic data spotlights the current state of the economy. US job openings fell to their lowest level since March 2021. The minutes from the Federal Reserve's December meeting showed that officials believe interest rates may have reached or be near the peak. Lastly, the US employment report for December showed 216,000 jobs were added in the month, and the unemployment rate was unchanged at 3.7%. So, what are the big takeaways that investors need to know? Yahoo Finance spoke to reporters, experts, and analysts across the industry regarding the latest economic data. JOLTS report (00:00:47) On Wednesday, the Labor Department reported US job openings fell to 8.79 million in November from 8.85 million in October. "Overall I think in line with the dominant theme of the US economy which is one that remains in fair standing but showing some signs of a slow down," says Yahoo Finance's Myles Udland. "Obviously, for Powell and the Fed I think this is exactly what they are wanting to see." Fed policy meeting (00:01:50) Although the Fed signaled a possible peak in interest rates on Wednesday, officials stressed there is a lot of uncertainty in the economy and left the door open to raising rates again if needed. Innovator Capital Management Head of Research & Investment Strategy Tim Urbanowicz found the meeting "surprising" along with the markets' reaction. "I just don't see the advantage of coming out as dovish as they did, signaling multiple cuts next year," he said. "While on the flip side I think the negatives are very clear, you are loosening financial conditions and ultimately making this a more challenging battle to fight in the new year." Jobs Report (00:02:57)On Friday a strong jobs report was announced. "Ultimately a story of slowing, but slowing less than expected overall jobs growth," says Yahoo Finance's Myles Udland. "And really the simplest way that I think policymakers looks at the labor market is just are more people getting jobs than losing jobs and we continue to see that trend remain the case.


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New Year’s resolutions for investors in 2024

Eat healthier, exercise more, have a better work-life balance. These are all common New Year's resolutions. But what are some resolutions that investors should make for 2024? Yahoo Finance spoke to experts across the industry for their investing advice in the New Year. Diversify your portfolio (00:00:03) "We should all be happy when we get higher returns in our portfolios, Apollo Global Management Chief Economist Torsten Slok said. "But the composition of these returns really matters. Thinking about, am I diversified enough in my investments?" Do your research on undiscovered companies (00:00:44) "It's been really easy in the past couple years to stick with the large cap names," Bailard Executive Vice President of Domestic Equities Dave Smith said. "I think it's going to be increasingly important to seek out those undiscovered names and really do the hard work on names that have been disproportionately impacted over the last year." Create long-term balance (00:01:15) "I think we learned a couple lessons through 2023," Vanguard Chief Economist & Global Head of Portfolio Construction Roger Aliaga-Díaz said. "Think about diversification, think about balance, especially for investors that have more of a long-term goal." Stay the course, be risk aware (00:01:50) "There's two resolutions in particular. We have one camp of investors that are scared with the run-up. They've flocked into cash. My advice there would be to stay the course, be risk aware," Innovator Capital Management Head of Research & Investment Strategy Tim Urbanowicz said. "And then you have the other 'stocks only go up' crowd, which are expecting the Mag 7 to produce the massive returns that they did last year. Tamper down those expectations. Consider the starting point." Mitigate risk in the market (00:02:17) "For investors, I think it's a great time right now to do a little bit of a gut check. We just saw incredible returns. You're seeing a lot of momentum around allocating to riskier parts of the market," John Hancock Investment Management Co-Chief Investment Strategist Emily Roland said. "It's really easy to get caught up in the excitement of reaching for risk here. And it's not that we don't want to participate. We do. We just want to be really mindful of mitigating risk by looking to higher quality and more defensive areas of the market."


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