Tuesday's Headlines: Ford’s Paying A Visit To Europe
Here were the biggest movers in the MyWallSt shortlist yesterday:
Moving Up ⬆️
Core & Main (CNM) +7.5%
Diageo (DEO) +3.7%
Ericsson (ERIC) +3.4%
TrueCar (TRUE) +3.3%
Moving Down ⬇️
Baozun (BZUN) -11.9%
Huazhu Hotels Group (HTHT) -10.9%
Trip.com Group (TCOM) -9.1%
Stitch Fix (SFIX) -8.4%
Upstart Holdings (UPST) -8.0%
1. Ford (F) is setting its sights on Europe, investing $2 billion to ramp up electric vehicle (EV) production in Cologne, Germany, and building out a battery facility east of the EU border in Turkey. Along with this, it announced that three new passenger vehicles and four new commercial vehicles would be arriving for its customer base in the region. Europe is becoming the stomping ground that all EV manufacturers want to get a piece of, driven by the EU and UK’s aggressive targets on emissions, which aim to eliminate the sale of new ICE vehicles by 2030. Ford upped its production targets too, aiming for 600,000 vehicle sales per year by 2026. Read the full story here.
2. Coupa Software (COUP) has been hammered in after-hours trading, falling almost 30%. The company reported a record quarterly revenue of $186 million, which increased 40% year-over-year (YoY), and its net loss widened to $91 million from $61 million in the year prior. These numbers were a big beat against analyst forecasts, but once again, guidance has proven to be its downfall. An expected full-year revenue estimate of between $717 million and $718 million wasn’t enough to please Wall Street, hence the steep decline. Despite this, management expressed confidence in its growth and that “customers continue to prioritize Business Spend Management as a fundamental aspect of their go-forward strategy.” Read the full earnings release here.
3. As inflation takes its toll, several multinational companies are being forced to raise prices. Google (GOOG) just increased the cost to customers across its core cloud services division yesterday and following it, Elon Musk’s Tesla (TSLA) announced a second price hike given the pressure to secure materials and handle shipping. When it comes down to shareholder value and profitability, more businesses will likely need to adjust and follow suit. A quote from Warren Buffett puts this in perspective: “If you’ve got the power to raise prices without losing business to a competitor, you’ve got a very good business. And if you have to have a prayer session before raising the price by 10 percent, then you’ve got a terrible business.” Read the full story here.
Some more earnings from last night:
Calavo Growers (CVGW) reported Q4 earnings last night. The company grew total revenue 24% to $274 million from the year prior and reported a net loss of $4 million. CEO Brian Kocher said, “we are showing sequential improvement quarter to quarter in revenue, gross margin, and EBITDA, and these trends are continuing into the second quarter.” Read the full earnings release here.
Total net revenue for Vail Resorts (MTN) increased 32% YoY to $906 million and net income came in at $223 million. This was a miss for analyst estimates on both revenue and earnings, but the company expects COVID obstruction to its business to ease and it continues to invest in the workforce and resort expansion. Read the full press release here.