Disclaimer: when we talk about that, that something has grown up, we mean a comparison with the same quarter a year ago. Since all issuers from the United States of America, then all indicators in dollars. When developing thought, sources were used, hard-to-reach for users from Russia. Putting our hopes on, Do you understand, what to do.
We look at the reporting
У Constellation Brands (NYSE: STZ) revenue grew extremely marginal: from 2.131 to 2.188 billion. But losses have increased: from 172.6 to 908.1 million. Wherein, the loss was due to losses from investments, the operating activity of the company is still profitable. In general, the indicators turned out to be slightly better than market expectations, and the company has improved its forecast for the current year.
General Mills (NYSE: GIS) showed a decrease in sales by ten percent, profit fell by thirty-three percent. In general, for the current year, the company predicts a decrease in sales in the range of 1-3 percent.. Basically, there is nothing unusual in this: associate the company's bottom line with the beginning of a severe epidemic, when Americans massively shopped before the apocalypse.
However, it became known, what, paraphrasing Chernomyrdin, everybody thinks, that after the apocalypse there will be something, - but nothing will happen, and that's life: everything goes on its way and implementations return to normal. The company predicts extremely moderate decline rates, starting from conjecture, that people will still continue to eat in the main at home.
У Bed Bath & Beyond (Nasdaq: BBBY) revenue increased by forty-nine percent, and losses decreased from 302 to 51 million. So our assumption about that, that the increase in purchasing power for new homes will also spur sales of the company, turned out to be true. Indicators came out slightly worse than expected, but in the near future the company expects improvement due to, surprisingly, returning students to dormitories. Implied, that they will buy new bedding and mattresses in droves.
AeroVironment (NASDAQ: AVAV) showed a slight increase in sales: from 135.223 to 136.015 million - the growth in sales of services counterbalanced the fall in sales of goods. Total profit due to large one-time investment losses fell from 17.471 to 10.946 million.
The old light of the economy will not spoil
IHS Markit Eurozone Manufacturing Purchasing Managers Index Reaches High 59,2 - this is the highest level since June 2006. Definitely good news for most European issuers from the continent, except those, who works in retail. This audience is not covered by the study., and obviously, that the coronacrisis continues to have a negative impact on it.
guess, that retail is doing well and can count on at least one good quarter, and even for a whole year of growth, if the quarantine does not repeat.
But the same study also points to subtle points.: production costs are growing due to more expensive materials and logistics are lame - late delivery of components has a bad effect on the operations of companies.
So along with the rise in revenues, European manufacturing companies may suffer from rising costs - this should be borne in mind by investors..
More Inequality from Equality Connoisseurs
The Inequality Index from Morning Consult and Axios hits the mark in June 6,7. It's much higher 5,7 in April, but less 8 in January.
The index is compiled on the basis of a survey on financial and economic topics of 260,000 people in the United States from different social strata. In total there 3 group, ranked by annual income: 50 thousand dollars or less, 50-100 thousand dollars or more, 100 thousand dollars or more. Respondents are asked about, how they assess the likelihood of losing a job, financial vulnerability, consumer confidence and, finally, the likelihood of a recent loss of income. All in all, the higher the index, the more inequality in the United States.
In June, index compilers noted, that a significant proportion of people with average incomes and below expect to lose their jobs and income in the coming months, and the rich feel great. However, nothing new, but why does it matter?
The American economy as a whole and S&P 500 in particular rests on the consumption of the Americans themselves. Respectively, the fall in the purchasing power of the population is equal to the fall in the income of most companies. Can, certainly, talk about, what is stratification is a normal process, but the problem here is, that a small group of rich people will not consume enough goods and services to, to ensure the growth of orders for a sufficient number of companies.
In practical terms, such news means an increase in the investment attractiveness of issuers such as Dollar General, specializing in goods "for the poor". And also such fluctuations in the relevant indices will fuel the debate on the topic of tax increases in the United States - and here the consequences for investors will be very serious..
Self-propelled IPO
Seems to be, soon trucks will have their own will and start driving without drivers, Like Stephen King's "Maximum Acceleration": self-driving truck software maker Embark Trucks goes public with SPAC merger. The company has been operating since 2016, and among its partners there are such large, как Anheuser-Busch, HP и Knight-Swift.
But so far Embark's accomplishments have been limited to Southern California driving experiments.. Expected, that the company's capitalization will be about $ 5.2 billion.
Although self-driving truck technology is not yet widely adopted, she looks pretty promising, since in the future it will allow logistics companies to significantly optimize their costs. By the way,, Amazon is already investing a lot of money in this area, and there is a possibility, that the rest of the logistics businesses will catch up soon.
Takeover news
And now let's talk a little about the news from the life of companies, for which we had investments.
Industrial automation giant Rockwell Automation buys manufacturing software maker Plex Systems for $2.2 billion. Basically, Rockwell has a lot of money: together with the debts of counterparties will be about $ 2 billion, - and her business is quite marginal and growing, therefore, the purchase of Plex will not place a heavy burden on the company. This deal can be viewed positively in the context of a long-term investment in Rockwell. On the other hand, the deal could damage Rockwell's credit rating, because of what the cost of loans for her may increase. This is especially true in the context of news about a possible imminent rate hike.. Also buy Plex expensive: the value of the company was almost 15 her last year's proceeds.
Online education platform 2U buys non-profit education platform edX for $800 million. This is a very courageous decision., because 2U is still unprofitable, edX was unprofitable too. But, judging by the growth of quotations 2U, investors approve this deal, as they expect, what's new, "enlarged" 39 million users 2U will be able to compete more effectively with Coursera. 2U itself counts, that buying edX will save her 40-60 million a year in marketing thanks to the conversion 0,03% edX users to paying customers. Is this true, we'll see in the future..
