Amazon Stock Loses $130 Billion In Market Value After $885 Million Fine And Disappointing Earnings Report

Shares of Amazon fell as much as 8% Friday after the e-commerce juggernaut disclosed a massive fine from European regulators for allegedly breaking regional privacy laws and posted second-quarter earnings results that failed to meet Wall Street expectations, putting the longtime market leader on track for its worst day in more than a year.

Key Facts

As of 11:15 a.m. EDT, Amazon stock has plunged 7% Friday to about $3,349.50, pushing the firm’s market capitalization down below $1.7 trillion and wiping out nearly $130 billion from a closing level above $1.8 trillion Thursday.

Ushering in the massive losses, Amazon posted second-quarter revenue after Thursday’s market close of $113.1 billion—up 27% year over year, but falling short of average analyst expectations totaling $115 billion.

Despite soaring more than 48%, net income of more than $7.7 billion also fell slightly short of estimates, which called for about $7.8 billion.

The stark decline also comes after Amazon disclosed a $885 million (746 million euros) fine, levied on July 16, by the Luxembourg National Commission for Data Protection, which claims Amazon’s processing of personal data did not comply with European regulations.

In the filing, Amazon, which in a statement asserts no data breach has occurred, said it believes the watchdog’s decision is “without merit” and that it intends to appeal the ruling and defend itself “vigorously” in the matter.

Amazon’s Friday plunge puts it on track for its worst one-day decline since the height of pandemic uncertainty tanked the broader market in March 2020.

Crucial Quote

“Consumers’ online shopping levels are returning to more normal levels as they shift some spending to other entertainment sources and offline shopping,” Morningstar analyst Dan Romanoff said in a Friday note. “Meanwhile, the company continues to add capacity [and costs] at a breakneck pace in order to meet customer demand and one day delivery,” Romanoff added, pointing out Amazon has already nearly doubled its footprint during the last 18 months.

Surprising Fact

Shares of Amazon are now down more than 10% from a record closing high of $3,719 earlier this month.

Tangent

Amazon far underperformed the broader market Friday. The Dow Jones Industrial Average, which doesn’t include Amazon, ticked down just 0.2%, while the S&P 500, which counts the retail giant as its third-largest component, fell 0.4%.

Chief Critic

“Maintaining the security of our customers’ information and their trust are top priorities. There has been no data breach, and no customer data has been exposed to any third party. These facts are undisputed,” Amazon said in a statement Friday. “The decision relating to how we show customers relevant advertising relies on subjective and untested interpretations of European privacy law, and the proposed fine is entirely out of proportion with even that interpretation.”

Further Reading

Amazon hit with $886m fine for alleged data breach (BBC)

Follow me on Twitter. Send me a secure tip.

I’m a reporter at Forbes focusing on markets and finance. I graduated from the University of North Carolina at Chapel Hill, where I double-majored in business journalism and economics while working for UNC’s Kenan-Flagler Business School as a marketing and communications assistant. Before Forbes, I spent a summer reporting on the L.A. private sector for Los Angeles Business Journal and wrote about publicly traded North Carolina companies for NC Business News Wire. Reach out at jponciano@forbes.com. And follow me on Twitter @Jon_Ponciano

Source: Amazon Stock Loses $130 Billion In Market Value After $885 Million Fine And Disappointing Earnings Report

.

Critics:

With technology stocks garnering renewed scrutiny, it’s helpful to take a look back at one company that has weathered some of the most severe market downturns and serious doubts from Wall Street: Amazon. Betting on the online bookstore wasn’t always a sure thing. Amazon’s journey from tiny garage start-up to one of the most valuable companies in the world has paid off for investors, but shareholders needed a strong stomach.“Earth’s Biggest Bookstore”

In the early 1990s, Jeff Bezos walked away from a Wall Street career with an outlandish idea to sell books on the World Wide Web. In 1994, he launched Amazon.com. “I found this fact on a website that the web was growing at 2,300 percent per year,” Bezos told CNBC in a 2001 interview about his early foray into book selling. “The idea that sort of entranced me was this idea of building a bookstore online.”

The site experienced growth quickly, going public three years later with $16 million in revenue and 180,000 customers spanning more than 100 countries (according to its SEC filing). But even as the site began growing, many investors had their doubts about Amazon, instead favoring brick-and-mortar book-selling giant Barnes & Noble.

At an early meeting between Barnes & Noble Chairman Leonard Riggio and Bezos, Riggio reportedly told Bezos he would “crush” Amazon. Barnes & Noble dwarfed the young start-up. The traditional bookseller had hundreds of stores and more than $2 billion in revenue. It was also tapping into major Silicon Valley talent to built its own sleek new website.

On top of that, it was suing Amazon over the start-up’s claim to be “Earth’s Biggest Bookstore.” But for those who took a chance and bought Amazon stock at the initial public offering, their investment has returned a compound annual growth rate of 38 percent since the IPO – outperforming the S&P 500 which had a total return of 10 percent annually over the same period.

Tech stocks have been under renewed pressure in recent weeks as the markets have experienced volatility. From September to November, Amazon stock lost a quarter of its value as the wider tech sector took major hits. Some analysts say it’s a good time to buy in. Others say Amazon’s growth rate has hit a ceiling as the company enters maturity.

.

Stocks Fall Again As Experts Worry About ‘Extremely Bullish’ Market Indicators

After closing at record highs last week, stocks are falling for the second day in a row as corporate earnings—which lifted the market to new highs during the pandemic—start to show signs of weakness, all while speculative pockets of investor mania continue to rage on.

Shortly after the open, the Dow Jones Industrial Average fell 147 points, or 0.4%, while the S&P 500 also slipped 0.4%, and the tech-heavy Nasdaq, which underperformed Monday, shed 0.3%.

Far outperforming any other stock in the S&P, shares of railroad company Kansas City Southern are soaring 15% after Canada National proposed to acquire the company in a $33.7 billion deal—topping Canadian Pacific’s $25 billion bid from last month and setting the stage for a potential bidding war.

Heading up the S&P’s losses, Marlboro parent Altria Group’s stock is slumping 6% after reports that Joe Biden’s administration (which has not commented on the matter) is considering a reduction in the amount of nicotine allowed in tobacco products.

On the earnings front, shares of IBM are climbing 2.5% after the software giant surpassed first-quarter expectations with revenue of $5.4 billion—bolstered by ongoing growth in its enterprise cloud business—and adjusted earnings of $2.2 billion.

Meanwhile, medical device company Abbott, which makes Covid-19 test kits, reported worse-than-expected revenue of $10.5 billion Tuesday morning as Covid-related sales fell nearly 10% quarter to quarter, sending shares down about 3%.

Reflecting ongoing uncertainty over the economic recovery, epicenter stocks—or those belonging to companies hard-hit by the pandemic—are also driving losses Tuesday, with chemicals firms Dupont De Nemours, cruise-liner Carnival Corp. and Delta Air Lines all falling about 2%.

Crucial Quote

“The reopening news is directionally positive, but the big problem is that many epicenter stocks have already seen their enterprise values return to pre-Covid levels, while some are well beyond where they stood in 2019,” Vital Knowledge Media Founder Adam Crisafulli said in a Tuesday morning note.

Tangent

In a break from tradition, the Bank of Japan revealed Tuesday that it opted out of buying exchange-traded funds despite weakness in Japanese stocks. Crisafulli says the move is “perhaps the most important piece of news today” because it signals the central bank is dialing back its economic support—at a time when central banks around the world, including the Federal Reserve, have revved up their accommodative policy to help the economy and usher in new stock-market highs. Japan’s Nikkei 225, the nation’s benchmark index, fell 2% Tuesday and is now down 4.5% from a February high.

Key Background

Boosted by massive fiscal stimulus, an accelerating vaccine rollout and falling unemployment, stocks have had a strong start to the year, with the S&P pulling off 23 new all-time highs in 2021, according to LPL Financial Chief Market Strategist Ryan Detrick. “Many of our favorite sentiment gauges are becoming extremely bullish, which could be a near-term contrarian warning,” Detrick says of indicators like sentiment, at a three-year high, and low cash allocations from portfolio managers increasingly piling into stocks.

Surprising Fact

The price of dogecoin is soaring Tuesday, climbing back near record territory from last week, as retail traders around the world stage a rally around cannabis holiday 4/20. The cryptocurrency, modeled after a meme and originally developed as a joke, has climbed eight-fold over the past month, nabbing a staggering $49 billion market capitalization.

Further Reading

S&P And Dow Score New Record Highs, For The Week: Health Care, Materials And Utilities Sectors Lead Gains (Forbes)

Peloton Shares Drop After It Resists Regulator Warnings About Treadmill Following Child’s Death  (Forbes)

I’m a reporter at Forbes focusing on markets and finance. I graduated from the University of North Carolina at Chapel Hill, where I double-majored in business journalism and economics while working for UNC’s Kenan-Flagler Business School as a marketing and communications assistant. Before Forbes, I spent a summer reporting on the L.A. private sector for Los Angeles Business Journal and wrote about publicly traded North Carolina companies for NC Business News Wire. Reach out at jponciano@forbes.com.

Source: Stocks Fall Again As Experts Worry About ‘Extremely Bullish’ Market Indicators

.

Related Blog Posts:

Elon Musk tweets that Autopilot had not been enabled as Tesla crash brings scrutiny

Apple stock update: The key numbers you need to look at now

IBM surprises with revenue gain, see growth returning to pre-COVID-19 levels

Kansas City Southern’s stock soars after Canadian National’s ‘superior’ bid valued at $33.7 bln

 

 

Investors Can Sleep on These 3 Dividend Stocks

Investors Can Sleep on These 3 Dividend Stocks

In a time of economic uncertainty, there is something to be said about low-risk dividend stocks. Companies whose fortunes aren’t directly tied to economic health and that pay a reliable dividend can be a comforting investment to those that aren’t keen on taking on a lot of risk.

Here we highlight three stocks that offer a steady dividend and some peace of mind as the economic recovery unfolds. They aren’t likely to make you rich anytime soon, but they will make for some more restful nights ahead

Is Coca-Cola Still a Buy-and-Hold Stock?

If Coca-Cola (NYSE:KO) is a refreshing investment for value legend Warren Buffet, it should be good enough for the rest of us. Regardless of the economic backdrop, there will always be consumer demand for sodas, juices, teas, and other beverages.

With this said, restrictions on large gatherings during the pandemic have impacted Coke’s recent financial performances and brought more volatility than usual to the stock. However, with the worst likely over, the company appears to be on the path back to more normalized sales patterns. As family picnics and outdoor concerts gradually return along with restaurant traffic, Coke should start to see higher volumes based on group size rather than stockpiling.

Despite recording 11% lower revenue in 2020, Coke kept its dividend hike streak going serving up a $1.64 payout to loyal shareholders. The 2.4% dividend increase made it 59 straight years of higher dividends.

In the near-term Coke is a conservative way to play the economic reopening theme. Its beverage portfolio is more in tune with health and wellness trends with brands like Vitaminwater, PowerAde, and Minute Maid. As activities like youth sports and amusement park attendance normalize, Coke’s performance should improve.

Longer-term Coke’s rising dividend and defensive nature make it the classic buy and hold stock. So, investors can simply opt to have what Warren’s drinking.

What is a Good Non-Cyclical Dividend Stock?

Speaking of defensive stocks, Unilever (NYSE:UL) is about as non-cyclical as its gets. The U.K.-based consumer products giant is the company behind many of our favorite personal care and food items. Dove soap, Axe body spray, Q-tips, and Vaseline are all Unilever brands. So too are popular indulgences like Ben & Jerry’s ice cream, Lipton iced teas (and soups), Hellmann’s mayonnaise, and even the beloved Popsicle brand.

Unilever is definitely, a mature, low growth business, but sometimes slow and steady wins the race. After rising 9% and 6% in 2019 and 2020, respectively, the low volatility stock is down approximately 8% this year offering investors a good chance to stock up.

Although the elevated demand for Unilever’s food products has waned in recent quarters, it’s pretty much a sure bet that people will still be scooping up their go-to items as shopping patterns normalize. And as usual, this should lead to some solid profits for Unilever and sizeable dividends for shareholders.

Unilever has one of the strongest balance sheets in its peer group that supports an ability to pursue growth opportunities such as product expansion and establishing a greater presence in developing markets. The ADR currently has a 3.4% trailing dividend yield which about twice the average dividend yield of the consumer staples sector. This is an easy stock to throw in the cart as a core long-term holding.

Is it a Good Time to Buy 3M Stock?

3M (NYSE:MMM) has been one of the least volatile U.S. large cap stocks over the last ten years. Although it’s not a consumer defensive company, it’s highly diversified end markets generate some reliable financial results. With broad exposure to the automotive, aerospace, transportation, electronics, and health care industries as well as the consumer space, a downturn in one segment can be easily offset by strength in another.

The company has had some choppy performances in recent quarters. Some of it has related to the pandemic and some has not. Demand for home improvement, cleaning, food safety, and personal safety products has been strong. On the other hand, COVID-19 restrictions have forced the automotive, industrial, office supplies, and oral care businesses to re-evaluate how to adjust to the post pandemic economy.

Fresh off a corporate restructuring, though, 3M looks to be in a good position to capitalize on improving conditions in its key markets and achieve its earnings growth goal. Management is aiming to reduce annual operating expenses by at least $250 million. Based on the initial progress, this looks feasible and should drive higher margins and steady single digit growth over the long-term.

3M consistently rakes in some $30 billion in revenue each year and even in slow or no growth years it rewards shareholders with a higher dividend. In fact, 3M has gone toe to toe with Coca-Cola in raising its annual dividend in each of the last 59 years. The Dow Jones index mainstay has a 3.1% dividend yield and at 23x earnings is trading at the lower end of its historical valuation range. It deserves to be a mainstay in any long-term investment portfolio.

By: MarketBeat

.

In this video, I’m going over 5 top dividend stocks to buy now that pay up to 8.5% dividend yield! I am a big fan of dividend investing for passive income – some of these stocks are a litter riskier, and some are definitely on the safer side. 
► Get 4 Free Stocks on WeBull (valued up to $1650 when you deposit $100): https://act.webull.com/kol-us/share.h… ► 1 FREE Stock with Robinhood: https://robinhood.c3me6x.net/d4J57 ► Get $10 Free Bitcoin: https://www.coinbase.com/join/chang_xxr ► Open a Roth IRA: https://m1finance.8bxp97.net/q5YyN
.
.

Make Investment at Bitsummate and use the referral code                           ( BIT5CCBWF2) to earn up to $1,500 Referral Bonus.

 

Sleep Deprived Financial Traders Make Lower Stock Market Returns

Do financial traders make better returns in the stock market when they are well rested? You would intuitively assume that a trader’s level of sleep would affect their decision making.

Several studies have certainly shown that sleep affects the ability of people to make decisions in general. Though admittedly based on small samples of participants, these studies show that those who are short on sleep tend to have relatively low attention to detail, poor memory, poor performance and significant mood swings.

But when it comes to whether sleep affects financial decisions, the evidence has been mixed. The only measure of sleepiness that has been used is the annual clock changes for daylight saving that take place in many countries, since they disturb many people’s sleep. A few studies have used this to look at how stock market returns are affected on the Mondays directly after the clocks go back or forward by an hour.

One such study in 2000 concluded that returns were relatively low when traders lacked sleep, and suggested that the lack of sleep might make them more risk-averse because they were anxious and struggling to concentrate. But later studies, such as this one from 2002, suggested that the correlation between sleep and cautious investing might not be as strong empirically as initially thought.

My work

Daylight-saving time changes have the advantage that we all have to adjust them, but they are far from an ideal proxy for sleep since they only occur twice a year, and the impact on people’s sleep is relatively small since the clock only changes by an hour. This might explain why the research evidence has been mixed in this area.

To try and improve our understanding in this area, I undertook a pilot study of a fund manager in England, analysing his investment transactions in the context of sleep data that he recorded in a diary.

I found that his sleep patterns did indeed influence his investment decisions. In line with the theory from the 2000 study, the fund manager made fewer transactions when he was short on sleep.

To see whether there was a wider correlation, I sought to develop a new proxy for sleep. We know that around 80% of people search for information online about their health issues, and there is no reason to believe that investors behave any differently. I also knew that Google data has been used by researchers to measure investor attention to individual stocks.

I therefore created a sleepiness index based on the extent to which people in the US were searching Google for 28 relevant terms including “sleep deprivation”, “sleeping pills” and “jet lag cure”. Some of these terms came from allowing the Google algorithm to offer up potential sleepiness terms based on suggested autocompletes.

The more that people searched for things to do with sleepiness, the greater the indication of sleep difficulties. Unlike the time changes from daylight saving, my index has the advantage of being based on daily data, and can measure a much wider range of sleepiness. To test its validity, I checked the index against times that we would normally associate with sleepiness, including daylight-saving time changes and also sunrises and sunsets. Sure enough, sleepiness-related Google searches increase at these times.

The index confirmed that stock-market returns are indeed quite low on days that traders are short on sleep. For every 1% daily increase in sleep difficulties across the population, stock-market returns fell by 0.14%. I also found that these patterns reversed on subsequent days, which may mean that traders realise that their initial decisions were poor and take steps to correct them.

What next from a research point of view? Researchers could potentially use the data from sleep apps to get more accurate measures of the relationship between stock market returns and the population’s sleepiness over time. No doubt the better we understand this, the more that traders will be able to use it to their advantage.

My work is another example of how online search data can shed new light on old research subjects. There are surely lots of other ways in which the academic community can use it to understand other factors that influence our decisions.

By: Antonios Siganos  Senior Lecturer in Finance, University of Glasgow

Source: Sleep-deprived financial traders make lower stock market returns – new research

.

.

More Contents:
Harmonium Sleep Support – The Top Sleep Supplement On CB
sites.google.com – Today[…] Crisis Led To A Shocking “Backyard” Tea Discovery That’s Now Helping Thousands Of Exhausted, Sleep-deprived 3 A […]18

Revision Supplement Review – Improving Your Eyesight & Memory Fast.
http://www.reviewsgoal.com – Today[…] If you are sleep-deprived, then you do not need to worry at all […]0

Tips on preparing for the switch to Daylight Saving Time
http://www.citynews1130.com – Today[…] ” Lu says those who are already sleep-deprived and children who rely on strict routines will be hardest hit […]2

The World According to Michael Coorlim
player.captivate.fm – Today[…] You know when you start feeling sleep deprived, how the world doesn’t feel real anymore? But then we figured out the cost to actually produce th […]N/A

Sleep Hygiene
ipccontent.advisorstream.com – Today[…] in order to get more things done or to rely on a cup (or more) of coffee to keep you going when sleep deprived […]0

Your Daylight Saving Time Questions Answered – The New York Times
http://www.nytimes.com – Today[…] “Not only are we sleep deprived but we’re trying to force our brain into a little bit more of an unnatural sleep schedule,” said Dr […]4

Acknowledging Preindustrial Patterns of Sleep May Revolutionize Approach to Sleep Dysfunction
http://www.psychiatrictimes.com – Today[…] that under our current conditions, we may fall asleep so quickly because we are chronically sleep-deprived […] Are we chronically sleep deprived? Bull Psychonomic Soc […]2

‘Almost inhumane’: Treating the complex problem of physician fatigue
http://www.tvo.org – Today[…] I completely forgot to check on this, because I was so sleep-deprived […]5

Chick-fil-A Opens In Linden: Top News Of The Week | Clark, NJ Patch
patch.com – Today[…] Aside from being sleep deprived, she finds this […]1

6 ways to feel less tired after daylight saving 2021
http://www.reviewed.com – Today[…] “We tend to crave sweets when we’re sleep-deprived,” Aronson says […]1

As Bipartisan Bill Moves To End Daylight Saving Time, A Review Of Why It’s So Bad For Our Health
gothamist.com – Today[…] even more: this Mayo Clinic found that DST could lead to “an increase in medical errors” because of sleep-deprived healthcare workers […]7

Belfast named as UK’s most sleep-deprived city – BelfastTelegraph.co.uk
http://www.belfasttelegraph.co.uk – Today[…] In a report compiled by a UK mattress firm, Belfast was picked as the most sleep-deprived city in the UK […] Between the start of 2020 and 2021, searches for sleep-deprived terms were said to have increased by nearly a third (30%) […]15

Four incredible benefits of CBD oil for dogs – FingerLakes1.com
bestcann.com – Today[…] When serotonin levels are low, canines become sleep-deprived, unhappy, and less sociable […]N/A

We must work together to make kitchens more inclusive
http://www.sodexo.com – Today[…] a global movement fighting for a more resilient and sustainable industry, 74% of chefs feel sleep deprived to the point of exhaustion; 53% of chefs feel pushed to breaking point; and 1 in 4 chefs ha […]0

Review Finds LAPD Failures Led to Mishandling of Summer Civil Unrest
http://www.asisonline.org – March 12[…] If they are sleep deprived, decision making could be impacted, which then has the potential to affect the success of th […]0

10 WEIGHT LOSS Life Hacks to LOSE WEIGHT FAST and EASY! (Tips That Actually Work)
thebestwaystoloseweight.net – March 12[…] habits can cause you to gain weight for one your metabolism does not function properly when you’re sleep-deprived secondly “youve had” the starvation hormone ghrelin that tells you when to eat when you hav […]0

TEA-rrific Creatures
http://www.sophsscrawls.co.uk – March 12It all started one early sleep deprived morning, whilst making a cup of tea I dropped the rather hot tea bag onto my open sketchbook […]0

Large cognitive fluctuations surrounding sleep in daily living
http://www.cell.com – March 12[…] Body posture affects electroencephalographic activity and psychomotor vigilance task performance in sleep-deprived subjects […] Cognitive performance, sleepiness, and mood in partially sleep deprived adolescents: the need for sleep study […]0

Light painting 101: Five easy steps to illuminating cyanide tanks carved with guerrilla art
photofocus.com – March 12[…] to weird music, stay out all night creating photos, get dirty, hang out with other creative sleep-deprived weirdos, see the stars drift across the sky and always find the best taco stands whil […]3

A year of the pandemic in your words – the examined family
courtney.substack.com – March 12[…] I have felt a deep darkness I have only experienced once before in my life, when chronically sleep deprived after my second child was born and wouldn’t sleep through the night for a year and a half […]2

Belfast people have more trouble sleeping than anywhere else in the UK, new study shows
http://www.irishpost.com – March 12[…] The study found that for every 100,000 people in Belfast, sleep-deprived terms were searched for 1,931 times […]1

5 reasons we won’t be giving up our weekend lie-ins right now
http://www.independent.co.uk – March 12[…] However, if it becomes a ‘need to have’ because we’re sleep deprived during the week, that’s a concern […]2

J.K. – Identity Crisis – Track by Track
1883magazine.com – March 12[…] I actually initiated the writing of this song when I was extremely sleep deprived, and I almost forgot (while compiling the track list) that I wrote it […]0

The Importance of Sleep for Kids
http://www.sleepgallery.biz – March 12[…] We all know what it’s like to attend an important class or meeting while sleep deprived […]1

Sleep maximizes vaccine effectiveness
medicalxpress.com – March 12[…] Up to 10 days later, the sleep-deprived individuals possessed half the number of vaccine antibodies than the non-sleep-deprived controls […]N/A

Sleep Maximizes Vaccine Effectiveness
http://www.newswise.com – March 12[…] Up to 10 days later, the sleep-deprived individuals possessed half the number of vaccine antibodies than the non-sleep-deprived controls […]N/A

Mental health and alcohol/drug use during the COVID-19 pandemic
positivechoices.org.au – March 12[…] “Let’s talk about sleep”: a qualitative examination of levers for promoting healthy sleep among sleep-deprived vulnerable adolescents […]145

An Investment in Hershey’s Stock Looks Sweeter Than Ever

Hershey’s (NYSE:HSYbecame an attractive investment last year when the COVID-driven sell-off resulted in ultra-low prices for this consumer staple. The company was not only well-positioned to weather the storm internal efforts to reposition the portfolio for longer-term sustainable growth were beginning to pay off. Over the past year, the company has finalized three major divestitures that have it in leaner shape, with a healthier balance sheet, and accelerating business.

Hershey’s, A Triple-Dip Of Good News

Hershey’s reported a very solid quarter despite headwinds related to divestitures and FX. Divestitures and FX resulted in a 0.2% and 0.4% headwind to the topline results with the takeaway being these headwinds are largely behind the company. That said, the $2.19 in reported consolidated revenue is 5.8% higher than last year and beat the consensus by 330 basis points. The gains were made on a 6.3% increase in organic sales due to a 5.75% increase in volume and a 0.6% increase in pricing. The U.S. segment was strongest with a bain of 9.06% while International saw its sales fall 13.1%.

Moving down the report, the company’s volume increase and internal efforts resulted in a significant increase in both the growth and operating margins. At the operating level, the GAAP margin increased by 470 basis points to 18.5% while the adjusted margin widened 170 basis points to 19.6% and both ahead of the consensus. The increase in revenue and margin resulted in earnings leverage and adjusted EPS of $1.49 or $0.06 better than expected.

“We delivered a strong quarter with continued share gains and volume growth to finish the year.   While the impact of key external factors on our business remains uncertain, we have good momentum going into 2021 with visibility into a strong start to the year.  We anticipate we will deliver another year of balanced sales and earnings growth in 2021,” said Michele Buck, The Hershey Company President, and Chief Executive Officer.

If the first dip of good news is the earnings beat, and the second the company’s increasing margins and earnings leverage, the third is the guidance. The company was among the first to reinstate guidance at the end of the calendar 3rd quarter 2020 and it has upped that guidance now. The company’s new projection has F2021 revenue growth in the range of 2-4% versus the previously expected 2.0% and a more robust 6-8% increase in EPS versus the $4.54 previously announced.

Hershey’s Dividend Is The Sprinkles On Top

If accelerating business, improving profitability, and earnings leverage aren’t enough to get you interested in Hershy there is also the dividend to consider. The company pays about 2.2% in yield with shares near $147 and there is a high expectation of future distribution increases. The company is paying about 48% of its earnings but that is based on a consensus figure well-below current guidance. The company’s earnings picture is backed up by a very healthy balance sheet as well, one that carries a moderate amount of cash and debt has good coverage and ample FCF. If the company follows true to form the next increase will come in later summer and could be worth as much as 10% of the current payout.

The Technical Outlook: Hershey’s Is Struggling With Resistance

Shares of Hershey’s popped on the news but resistance at the short-term moving average threatens to keep price action range-bound or moving lower. If price action cannot get above the 30 EMA a retest of the $144 level or lower becomes the most likely scenario. If, however, the bulls can rally and get above the EMA a move up to $152 or $153 looks probable.

By: Thomas Hughes

.

Gray Matrix on LinkedIn: Marketing & Broadcasts – AI & Chatbots – Talkk.ai http://www.linkedin.com – January 9[…] in/ecPBRqe #digitalmarketing #omnichannelmarketing #omnichannel #campaigns #talkk #brandambassador #consumerexperience Like Comment Share To view o […]N/A

Laurance Langdon, APMP on LinkedIn: Looking ahead: 2021 trends in retail automation and store supply chains http://www.linkedin.com – December 24, 2020[…] #supplychainsolutions #freightforwarder 2021, will see complete transformation of retail biz to #omnichannelmarketing with automation and outsourcing being key drivers […]0

Troy Singer on LinkedIn: Buffer http://www.linkedin.com – December 11, 2020[…] watching this short video? #digitaladvertising #digitalmarketingstrategy #digitalmarketingservices #omnichannelmarketing #directmail #directmailmarketing Digital marketing strategy vs […]N/A

Gus Calabro on LinkedIn: #StagnitoRetailMarketing #groceryindustry #supermarket http://www.linkedin.com – November 13, 2020[…] #foodindustry #supermarkets #grocery #grocery #investingstrategy #omnichannelretail #omnichannel #omnichannelmarketing Like Comment Share To view or add a comment, sign in To view or add a comment, sign in 15,06 […]N/A

Mark Pageau on LinkedIn: Cure Email Fatigue With Direct Mail http://www.linkedin.com – November 10, 2020[…] #omnichannelmarketing #ROI #effectivemessaging Like Comment Share To view or add a comment, sign in To view or add […]0

Oz Etzioni on LinkedIn: #personalizationeverywhere #adobecreativecloud #omnichannelmarketing http://www.linkedin.com – October 24, 2020[…] co #personalizationeverywhere #adobecreativecloud #omnichannelmarketing #creativetechnology Like Comment Share To view or add a comment, sign in To view or add a comment […]N/A

Eduard Perez-Mañanet Lozoya posted on LinkedIn http://www.linkedin.com – October 19, 2020An omnichannel strategy means providing your customers with a fully integrated shopping experience from the physical store to the virtual store, including mobile applications and the full range of possibilities offered by the offline and online world. #marketingconsultancy #digitalmarketing #optimizationstrategies #omnichannelmarketing Like Comment Share To view or add a comment, sign in To view or add a comment, sign in Editor’s Picks 2,174 followers 1,617 Posts 0 Articles View Profile FollowN/A

Oz Etzioni posted on LinkedIn http://www.linkedin.com – October 13, 2020[…] in/e49Ab3i #personalizationeverywhere #customerexperience #omnichannelmarketing Like Comment Share To view or add a comment, sign in To view or add a comment, sign in Editor’ […]0

Sid Nair posted on LinkedIn http://www.linkedin.com – September 23, 2020[…] #marketing #branding #seo #ppc #advertisingagency #customerdataplatform #customerexperience #omnichannelmarketing #servicelane #repurchase Like Comment Share Chris Puppos Vroom Vroom baby ! Like Reply 1 Like 3 […]N/A

“Discover How This Brand NEW Done for You Omnichannel Sales Funnel Automation System That Will Help You Dominate and Profit from Your Product, Service http://www.linkedin.com – September 20, 2020[…] #webinars2020 #salesfunnel #salesfunnels #entrepreneur #coachlife #onlinebusiness #onlinetrainings #omnichannelmarketing #marketingautomation #messengermarketing #emailmarketing #smsmarketing #founder #ceomindset […]3

DANIEL OGUNTIFA – Mktg Comm Expert posted on LinkedIn http://www.linkedin.com – September 3, 2020[…] you can monitor by yourself using technology, you have: Read More #customerexperience #directmail #omnichannelmarketing #seo #contentmarketing https://lnkd […]N/A

Omnichannel marketing strategy is the game-changer for every marketer! audienceprime.com – June 9, 2020[…]   Our topics of discussion for Omnichannelmarketing are: Firstly, what is Omnichannel? What is Omnichannel Marketing? What are the Omnichanne […]3

Top 5 FREE small business tools to find new market opportunities FAST! http://www.inspirehub.com – May 26, 2020[…] discovering more explicit resources and allies:  #differentiation, #competitivestrategies, #dtc, #omnichannelmarketing, #growyourbrand, #crisismanagement, #crisisleadership, #changemanagement and #businesscontinuity […]2

If you don’t have a Coffee Shop, how do you inspire retention? http://www.linkedin.com – February 25, 2020[…] – Keverne & Team KardZee #kardzee #clientretention #omnichannelmarketing #relationshipmarketing #personalizedstorytelling #loyaltymarketing #retention #storytellers2

LemmaDOOH on LinkedIn: Broadsign partners with Lemma to expand DOOH offering http://www.linkedin.com – December 19, 2019[…] #dooh #pdooh #digitaloutofhome #adsparc #lemma #lemmadooh #broadsign #omnichannel #omnichannelmarketing https://lnkd […]4

Affle launches Vizury Engage360 to simplify omnichannel marketing nrinews24x7.com – December 10, 2019[…] Yong, the Chief Architect & Technology Officer at Affle commented “Vizury Engage360is anAI-driven omnichannelmarketing platform thatoptimises the potential of each channeland deliversintegrated consumer experience […]1

Priyambada Mishra on LinkedIn: “This Monday’s marketing dose video covers pitching as part of your marketing strategy and sales plan. Even when you think you are not selling, you are pitching in one way or another. Like on networking events when simply being asked what you do. It is important to be consistent and positive in your pitching efforts without being perceived as talking just about yourself. I can help you with the right marketing strategy aligning sales plans with consistency to achieve the desired results in an effective way. #omnichannelmarketing #marketingtrends #marcomhacks #strategicstrength #exantedigital “ http://www.linkedin.com – October 28, 2019[…] #omnichannelmarketing #marketingtrends #marcomhacks #strategicstrength #exantedigital Share this post with your networ […]1

Planting Seeds http://www.linkedin.com – April 5, 2019[…] #PlantingSeeds #Gardening #Business #Building #Networking #Marketing #Advertising #Growing #Share #OmniChannelMarketing #Connections #Growth

%d bloggers like this: