64.08 +0.22 (0.34%)
After hours: 7:08PM EDT
|Bid||63.78 x 1000|
|Ask||64.08 x 1000|
|Day's range||63.02 - 64.17|
|52-week range||52.04 - 77.03|
|Beta (5Y monthly)||0.74|
|PE ratio (TTM)||11.57|
|Earnings date||05 Aug 2020|
|Forward dividend & yield||2.00 (3.18%)|
|Ex-dividend date||22 Jul 2020|
|1y target est||78.78|
Completed Successful Restart of all 20 facilities in May; Refinanced Credit Facility in June Second Quarter Highlights: * Produced Net Sales of $120.0 million * Results include one-time, non-cash goodwill impairment charge of $127.9 million * Recorded GAAP Loss per Share of $(4.55) * Reported Adjusted EPS of $0.33 * Refinanced $375 Million credit facility to enhance liquidity and reinforce capital structure * Paid $0.28 per share cash dividend on June 30, 2020; Board remains fully committed to paying dividend in 2020 and beyondMILWAUKEE, Aug. 03, 2020 (GLOBE NEWSWIRE) -- Douglas Dynamics, Inc. (NYSE: PLOW), North America’s premier manufacturer and upfitter of work truck attachments and equipment, today announced financial results for the second quarter ended June 30, 2020.“Through the tremendous efforts of everyone at our company, we successfully executed our restart in May after effectively being shut down for half of the second quarter and are operating at normal capacity today. Our team dedicated countless hours to creating a safe return to work environment for our employees and we were very pleased that approximately 99% of our furloughed employees rejoined the company in May,” explained Bob McCormick, President and CEO. “As anticipated, our second quarter financial performance was impacted by three main issues, lower pre-season orders in our Attachments segment following two consecutive years of below average snowfall in key markets, ongoing chassis supply issues in our Solutions segment, and the impact of the pandemic, including the shutdown. It is important to remember that our organization is primed to continually adapt to changing external conditions, and we remain confident in our ability to maximize our performance focusing on the factors within our control.”Consolidated Second Quarter 2020 Results $ in millions (except Margins & EPS)Q2 2020Q2 2019 Net Sales$120.0 $176.4 Gross Profit Margin 26.7% 33.8% Income (Loss) from Operations$(112.4)$38.1 Net Income (Loss)$(103.9)$25.5 Diluted EPS$(4.55)$1.10 Adjusted EBITDA$20.3 $44.1 Adjusted EBITDA Margin 16.9% 25.0% Adjusted Net Income$7.6 $26.5 Adjusted Diluted EPS$0.33 $1.14 * Consolidated Net Sales were lower compared to the prior year, due to the combination of lower pre-season period sales following the second consecutive winter of below average snowfall in key markets, the impact of the pandemic on demand and supply dynamics, and chassis supply constraints. * GAAP Net Loss of $(103.9) million and EPS of $(4.55) includes a one-time, non-cash goodwill impairment charge of $127.9 million, relating to the Municipal and Dejana reporting units of our Solutions segment. * After shutting down all of its facilities on March 18, the Company initially re-opened some of its facilities in mid-April and successfully re-opened all 20 of its facilities by the end of May. * Included in the quarter were debt modification expenses of $3.2 million, and favorable SG&A impact driven by a $2.0 million earnout reversal, plus an overall decrease in discretionary spending. * The effective tax rate (benefit) was (14.4%) which is lower than 24.6% last year due to the impairment of nondeductible goodwill related to the Municipal reporting unit.Work Truck Attachments Segment Second Quarter 2020 Results$ in millions (except Adjusted EBITDA Margin)Q2 2020Q2 2019 Net Sales$73.8 $112.2 Adjusted EBITDA$20.4 $38.5 Adjusted EBITDA Margin 27.7% 34.3% * Net Sales decreased 34% compared to the prior year due to lower pre-season sales, which were impacted by two consecutive winters of below average snowfall in key markets, particularly the North East. * Adjusted EBITDA was impacted by lower volumes based on snowfall trends, plus the shutdown in March and April. * The preseason order period started two weeks later in 2020 due to the pandemic-related shutdown, and an approximately 55/45 split between second quarter and third quarter pre-season orders is anticipated. * As previously discussed, the pre-season is expected to account for a lower portion of the segment’s sales compared to the average year, with an increased focus on the fourth quarter.Work Truck Solutions Segment Second Quarter 2020 Results$ in millions (except Adjusted EBITDA Margin)Q2 2020Q2 2019 Net Sales$46.2 $64.1 Adjusted EBITDA$(0.1)$5.6 Adjusted EBITDA Margin -0.3% 8.8% * Net Sales decreased compared to the prior year, as the segment continues to be impacted by the COVID-19 pandemic, including the related shutdown of the Company’s facilities, customer shutdowns, and supply chain constraints, including chassis for Class 4-6 trucks. * Adjusted EBITDA was impacted primarily by the shutdown and reduced economic activity in core markets on the East coast, plus supply chain issues, partially offset by reduced discretionary spending. * Despite near-term challenges, demand for municipal snow and ice control products and upfit remains strong, plus work truck upfits for corporate fleet orders began to rebound in June.Dividend, Balance Sheet & Liquidity * A quarterly cash dividend of $0.28 per share of the Company's common stock was declared on June 4, 2020, and paid on June 30, 2020, to stockholders of record as of the close of business on June 19, 2020. * Net Cash Used in Operating Activities for the first six months of 2020 increased to $6.0 million from $0.3 million used during the first six months of 2019, due to less favorable operating results, partially offset by favorable working capital changes, namely a decrease in accounts receivable. * Free Cash Flow for the first six months of 2020 decreased to $(11.1) million from $(5.8) million for the first six months of 2019 due to the same items noted above. * Successfully refinanced $375 million of new credit facilities, consisting of a $275 million 6-year Senior Secured Term Loan B Facility due June 2026 and a $100 million 3-year Senior Secured ABL Revolving Credit Facility due June 2023. * As of June 30, 2020, Douglas Dynamics maintained $126.8 million of total liquidity, comprised of $34.9 million in cash and cash equivalents and borrowing availability of $91.9 million under its revolving credit facility.“We successfully refinanced our senior credit facilities during the quarter, which reinforces our robust financial position and provides us with the liquidity and flexibility to execute our growth plans,” noted Sarah Lauber, Chief Financial Officer. “In addition, despite the challenges presented so far this year, our Board remains fully committed to paying our dividend for the remainder of 2020 and beyond.”OutlookMcCormick noted, “Significant uncertainty still exists across the country and the economic landscape, limiting our visibility and ability to forecast accurately. The exact operational and economic impact of the COVID-19 pandemic coupled with supply chain disruption is still unclear. However, we have weathered many economic storms over the years, and while this situation is unique, we believe that we are well equipped to manage through effectively and emerge stronger as conditions improve.”The Company is providing additional outlook commentary: * Free Cash Flow is expected to exceed the amount necessary to fund the dividend for 2020. * In the Attachments segment, the preseason order period started two weeks later, but the operational restart was executed effectively allowing more products than expected to be shipped during the second quarter, creating an anticipated 55-45 split for the pre-season across the second and third quarters, respectively. * As previously discussed, the pre-season is expected to account for a lower portion of the segment’s sales compared to the average year, with an increased focus on the fourth quarter.Earnings Conference Call Information * A conference call will occur on Tuesday, August 4, 2020 at 10:00 a.m. Eastern Time (9:00 a.m. Central Time). To join the conference call, please dial (877) 369-6591 domestically, or (253) 237-1176 internationally. * The call will also be available via the Investor Relations section of the website at www.douglasdynamics.com. For those who cannot listen to the live broadcast, replays will be available for one week following the call.About Douglas DynamicsHome to the most trusted brands in the industry, Douglas Dynamics is North America’s premier manufacturer and up-fitter of commercial work truck attachments and equipment. For more than 70 years, the Company has been innovating products that not only enable people to perform their jobs more efficiently and effectively, but also enable businesses to increase profitability. Through its proprietary Douglas Dynamics Management System (DDMS), the Company is committed to continuous improvement aimed at consistently producing the highest quality products, at industry-leading levels of service and delivery that ultimately drive shareholder value. The Douglas Dynamics portfolio of products and services is separated into two segments: First, the Work Truck Attachments segment, which includes commercial snow and ice control equipment sold under the FISHER®, SNOWEX® and WESTERN® brands. Second, the Work Truck Solutions segment, which includes the up-fit of market leading attachments and storage solutions under the HENDERSON® brand, and the DEJANA® brand and its related sub-brands.Use of Non-GAAP Financial Measures This press release contains financial information calculated other than in accordance with U.S. Generally Accepted Accounting Principles (“GAAP”). The non-GAAP measures used in this press release are Adjusted EBITDA, Adjusted Net Income (Loss) and Adjusted Earnings (Loss) Per Share, and Free Cash Flow. The Company believes that these non-GAAP measures are useful to investors and other external users of its consolidated financial statements in evaluating the Company’s operating performance as compared to that of other companies. Reconciliations of these non-GAAP measures to the nearest comparable GAAP measures can be found immediately following the Consolidated Statements of Cash Flows included in this press release.Adjusted EBITDA represents net income (loss) before interest, taxes, depreciation, and amortization, as further adjusted for certain charges consisting of unrelated legal and consulting fees, pension termination costs, stock-based compensation, certain purchase accounting expenses, impairment charges, expenses related to debt modifications, and incremental costs incurred related to the COVID-19 pandemic. Such COVID-19 related costs include increased expenses directly related to the pandemic, and do not include either production related overhead inefficiencies or lost or deferred sales. We believe these costs are out of the ordinary, unrelated to our business and not representative of our results. The Company uses Adjusted EBITDA in evaluating the Company’s operating performance because it provides the Company and its investors with additional tools to compare its operating performance on a consistent basis by removing the impact of certain items that management believes do not directly reflect the Company’s core operations. The Company’s management also uses Adjusted EBITDA for planning purposes, including the preparation of its annual operating budget and financial projections, and to evaluate the Company’s ability to make certain payments, including dividends, in compliance with its senior credit facilities, which is determined based on a calculation of “Consolidated Adjusted EBITDA” that is substantially similar to Adjusted EBITDA.Adjusted Net Income (Loss) and Adjusted Earnings (Loss) Per Share (calculated on a diluted basis) represents net income (loss) and earnings (loss) per share (as defined by GAAP), excluding the impact of stock based compensation, pension termination costs, non-cash purchase accounting adjustments, impairment charges, expenses related to debt modifications, certain charges related to unrelated legal fees and consulting fees, incremental costs incurred related to the COVID-19 pandemic, adjustments on derivatives not classified as hedges, net of their income tax impact. Such COVID-19 related costs include increased expenses directly related to the pandemic, and do not include either production related overhead inefficiencies or lost or deferred sales. We believe these costs are out of the ordinary, unrelated to our business and not representative of our results. Adjustments on derivatives not classified as hedges are non-cash and are related to overall financial market conditions; therefore, management believes such costs are unrelated to our business and are not representative of our results. Management believes that Adjusted Net Income (Loss) and Adjusted Earnings (Loss) Per Share are useful in assessing the Company’s financial performance by eliminating expenses and income that are not reflective of the underlying business performance.Free Cash Flow is a non-GAAP financial measure that we define as net cash provided by (used in) operating activities less capital expenditures. Free Cash Flow should be evaluated in addition to, and not considered a substitute for, other financial measures such as Net Income (Loss) and Net Cash Used in Operating Activities. We believe that free cash flow represents our ability to generate additional cash flow from our business operations.Forward Looking Statements This press release contains certain forward-looking statements within the meaning of Section 21E of the Securities Exchange Act of 1934, as amended. These statements include information relating to future events, future financial performance, strategies, expectations, competitive environment, regulation, product demand, the payment of dividends, and availability of financial resources. These statements are often identified by use of words such as "anticipate," "believe," "intend," "estimate," "expect," "continue," "should," "could," "may," "plan," "project," "predict," "will" and similar expressions and include references to assumptions and relate to our future prospects, developments, and business strategies. Such statements involve known and unknown risks, uncertainties and other factors that could cause our actual results, performance or achievements to be materially different from any future results, performance or achievements expressed or implied by these forward-looking statements. Factors that could cause or contribute to such differences include, but are not limited to, weather conditions, particularly lack of or reduced levels of snowfall and the timing of such snowfall, our inability to maintain good relationships with our distributors, our inability to maintain good relationships with the original equipment manufacturers with whom we currently do significant business, lack of available or favorable financing options for our end-users, distributors or customers, increases in the price of steel or other materials, including as a result of tariffs, necessary for the production of our products that cannot be passed on to our distributors, increases in the price of fuel or freight, a significant decline in economic conditions, the inability of our suppliers and original equipment manufacturer partners to meet our volume or quality requirements, inaccuracies in our estimates of future demand for our products, our inability to protect or continue to build our intellectual property portfolio, the effects of laws and regulations and their interpretations on our business and financial condition, our inability to develop new products or improve upon existing products in response to end-user needs, losses due to lawsuits arising out of personal injuries associated with our products, factors that could impact the future declaration and payment of dividends, our inability to compete effectively against competition, our inability to achieve the projected financial performance with the assets of Dejana Truck & Utility Equipment Company, Inc., which we acquired in 2016, and unexpected costs or liabilities related to such acquisitions, as well as those discussed in the section entitled “Risk Factors” in our annual report on Form 10-K for the year ended December 31, 2019. You should not place undue reliance on these forward-looking statements. In addition, the forward-looking statements in this release speak only as of the date hereof and we undertake no obligation, except as required by law, to update or release any revisions to any forward-looking statement, even if new information becomes available in the future.Financial StatementsDouglas Dynamics, Inc. Consolidated Balance Sheets (In thousands) June 30,December 31, 20202019 (unaudited)(unaudited) Assets Current assets: Cash and cash equivalents$34,932$35,665 Accounts receivable, net 76,827 87,871 Inventories 99,780 77,942 Inventories - truck chassis floor plan 6,663 6,539 Refundable income taxes paid 103 - Prepaid and other current assets 4,714 3,511 Total current assets 223,019 211,528 Property, plant, and equipment, net 59,114 58,444 Goodwill 113,134 241,006 Other intangible assets, net 158,245 163,722 Operating lease - right of use asset 22,460 22,557 Other long-term assets 8,915 8,438 Total assets$584,887$705,695 Liabilities and stockholders' equity Current liabilities: Accounts payable$18,743$16,113 Accrued expenses and other current liabilities 25,845 26,496 Floor plan obligations 6,663 6,539 Operating lease liability - current 4,085 3,822 Income taxes payable - 2,990 Current portion of long-term debt 1,972 22,143 Total current liabilities 57,308 78,103 Retiree health benefit obligation 6,549 6,338 Deferred income taxes 27,458 47,211 Long-term debt, less current portion 266,336 222,081 Operating lease liability - noncurrent 18,638 18,981 Other long-term liabilities 24,178 19,818 Total stockholders' equity 184,420 313,163 Total liabilities and stockholders' equity$584,887$705,695 Douglas Dynamics, Inc. Consolidated Statements of Income (In thousands, except share and per share data) Three Month Period Ended Six Month Period Ended June 30, 2020June 30, 2019 June 30, 2020June 30, 2019 (unaudited) (unaudited) Net sales$120,043 $176,356 $188,233 $269,543 Cost of sales 87,968 116,763 144,468 187,004 Gross profit 32,075 59,593 43,765 82,539 Selling, general, and administrative expense 13,858 18,767 31,007 35,411 Impairment charges 127,872 - 127,872 - Intangibles amortization 2,739 2,739 5,477 5,480 Income (loss) from operations (112,394) 38,087 (120,591) 41,648 Interest expense, net (5,662) (4,189) (10,702) (8,339) Debt modification expense (3,192) - (3,192) - Other expense, net (67) (125) (178) (296) Income (loss) before taxes (121,315) 33,773 (134,663) 33,013 Income tax expense (benefit) (17,456) 8,299 (20,718) 7,836 Net income (loss)$(103,859)$25,474 $(113,945)$25,177 Weighted average number of common shares outstanding: Basic 22,857,457 22,795,412 22,835,356 22,762,431 Diluted 22,857,457 22,830,145 22,835,356 22,795,406 Earnings (loss) per share: Basic earnings (loss) per common share attributable to common shareholders$(4.55)$1.10 $(5.00)$1.09 Earnings (loss) per common share assuming dilution attributable to common shareholders$(4.55)$1.10 $(5.00)$1.08 Cash dividends declared and paid per share$0.28 $0.27 $0.56 $0.55 Douglas Dynamics, Inc. Consolidated Statements of Cash Flows (In thousands) Six Month Period Ended June 30, 2020June 30, 2019 (unaudited) Operating activities Net income (loss)$(113,945)$25,177 Adjustments to reconcile net income (loss) to net cash used in operating activities: Depreciation and amortization 9,797 9,607 Debt modification expense 267 - Amortization of deferred financing costs and debt discount 605 607 Stock-based compensation 2,569 2,536 Adjustments on derivatives not designated as hedges 3,057 - Provision for losses on accounts receivable 491 891 Deferred income taxes (19,753) 492 Impairment charges 127,872 - Earnout liability (2,017) (217) Changes in operating assets and liabilities, net of acquisitions: Accounts receivable 9,996 (34,106) Inventories (21,838) (11,920) Prepaid assets, refundable income taxes paid and other assets (1,783) (1,824) Accounts payable 2,688 (109) Accrued expenses and other current liabilities (3,749) 9,438 Benefit obligations and other long-term liabilities (281) (892) Net cash used in operating activities (6,024) (320) Investing activities Capital expenditures (5,048) (5,451) Net cash used in investing activities (5,048) (5,451) Financing activities Shares withheld on restricted stock vesting paid for employees’ taxes (72) (50) Payments of financing costs (992) \-- Borrowings on long-term debt 270,875 \-- Dividends paid (12,926) (12,570) Net revolver borrowings \-- 27,000 Repayment of long-term debt (246,546) (31,418) Net cash provided by (used in) financing activities 10,339 (17,038) Change in cash and cash equivalents (733) (22,809) Cash and cash equivalents at beginning of period 35,665 27,820 Cash and cash equivalents at end of period$34,932 $5,011 Non-cash operating and financing activities Truck chassis inventory acquired through floorplan obligations$8,510 $22,485 Douglas Dynamics, Inc. Segment Disclosures (unaudited) (In thousands) Three Months Ended June 30, 2020 Three Months Ended June 30, 2019 Six Months Ended June 30, 2020 Six Months Ended June 30, 2019 Work Truck Attachments Net Sales$73,830 $112,244 $92,950 $138,061 Adjusted EBITDA$20,448 $38,466 $18,372 $40,750 Adjusted EBITDA Margin 27.7% 34.3% 19.8% 29.5% Work Truck Solutions Net Sales$46,213 $64,112 $95,283 $131,482 Adjusted EBITDA$(116) $5,644 $245 $12,379 Adjusted EBITDA Margin -0.3% 8.8% 0.3% 9.4% Douglas Dynamics, Inc. Free Cash Flow reconciliation (unaudited) (In thousands) Three month period ended June 30, Six month period ended June 30, 2020 2019 2020 2019 Net cash provided by (used in) operating activities$3,056 $5,257 $(6,024) $(320) Acquisition of property and equipment (2,744) (4,682) (5,048) (5,451) Free cash flow$312 $575 $(11,072) $(5,771) Douglas Dynamics, Inc. Net Income (Loss) to Adjusted EBITDA reconciliation (unaudited) (In thousands) Three month period ended June 30, Six month period ended June 30, 2020 2019 2020 2019 Net income (loss)$(103,859) $25,474 $(113,945) $25,177 Interest expense - net 5,662 4,189 10,702 8,339 Income tax expense (benefit) (17,456) 8,299 (20,718) 7,836 Depreciation expense 2,164 2,060 4,320 4,127 Intangibles amortization 2,739 2,739 5,477 5,480 EBITDA (110,750) 42,761 (114,164) 50,959 Stock-based compensation 1,201 1,482 2,569 2,536 Impairment charges 127,872 - 127,872 - Debt modification expense 3,192 - 3,192 - COVID-19 (1) 848 - 1,165 - Purchase accounting (2) (2,000) - (2,017) (217) Other charges (3) (31) (133) - (149) Adjusted EBITDA$20,332 $44,110 $18,617 $53,129 (1) Reflects incremental costs incurred related to the COVID-19 pandemic for the periods presented. (2) Reflects $2,000 reversal of earn-out compensation acquired in conjunction with the acquisition of Dejana in the periods presented. Reflects $17 and $217 reversal of earn-out compensation in conjunction with the acquisition of Henderson in the six months ended June 30, 2020 and 2019, respectively. (3) Reflects one time, unrelated legal and consulting fees for the periods presented. Douglas Dynamics, Inc. Reconciliation of Net Income (Loss) to Adjusted Net Income (Loss) (unaudited) (In thousands, except share and per share data) Three month period ended June 30, Six month period ended June 30, 2020 2019 2020 2019 Net income (loss)$(103,859) $25,474 $(113,945) $25,177 Adjustments: Stock based compensation 1,201 1,482 2,569 2,536 Impairment charges 127,872 - 127,872 - Debt modification expense 3,192 - 3,192 - COVID-19 (1) 848 - 1,165 - Purchase accounting (2) (2,000) - (2,017) (217) Adjustments on derivative not classified as hedge (3) 1,644 - 3,057 - Other charges (4) (31) (133) - (149) Tax effect on adjustments (21,232) (337) (22,010) (543) Adjusted net income (loss)$7,635 $26,486 $(117) $26,804 Weighted average basic common shares outstanding 22,857,457 22,795,412 22,835,356 22,762,431 Weighted average common shares outstanding assuming dilution 22,857,457 22,830,145 22,835,356 22,795,406 Adjusted earnings (loss) per common share - dilutive$0.33 $1.14 $(0.02) $1.15 GAAP diluted earnings (loss) per share$(4.55) $1.10 $(5.00) $1.08 Adjustments net of income taxes: Stock based compensation 0.04 0.04 0.07 0.08 Impairment charges 4.72 - 4.72 - Debt modification expense 0.11 - 0.11 - COVID-19 (1) 0.03 - 0.05 - Purchase accounting (2) (0.07) - (0.07) (0.01) Adjustments on derivative not classified as hedge (3) 0.05 - 0.10 - Other charges (4) - - - - Adjusted diluted earnings (loss) per share $0.33 $1.14 $(0.02) $1.15 (1) Reflects incremental costs incurred related to the COVID-19 pandemic for the periods presented. (2) Reflects $2,000 reversal of earn-out compensation acquired in conjunction with the acquisition of Dejana in the periods presented. Reflects $17 and $217 reversal of earn-out compensation acquired in conjunction with the acquisition of Henderson in the six months ended June 30, 2020 and 2019, respectively. (3) Reflects mark-to-market and amortization adjustments on an interest rate swap not classified as a hedge for the periods presented. (4) Reflects one time, unrelated legal and consulting fees for the periods presented. For further information contact: Douglas Dynamics, Inc. Nathan Elwell 847-530-0249 firstname.lastname@example.org
Great dividends. Low prices. Strong businesses. That's a combination nearly any investor would like.
CVS Health (CVS) possesses the right combination of the two key ingredients for a likely earnings beat in its upcoming report. Get prepared with the key expectations.
CVS Health's (CVS) consumer centric digital strategy becomes even more relevant in Q2 with people increasingly using technology while staying at home.
CVS Caremark launched its point solutions management program with a sleep service from Big Health nearly a year ago, and now it's adding another of the digital mental healthcare startup's products to its suite of managed point solutions. The Daylight product, which is designed to help people alleviate worry and anxiety, will join an expanding list of digital therapeutics that CVS Caremark offers to manage for employer-directed healthcare plans. Other services in the CVS Caremark portfolio of offerings include Sleepio, a personalized digital sleep program from Big Health; Hello Heart, which helps members understand and improve their heart health; Hinge Health, which provides an app-based coaching and wearable sensor for chronic back and joint pain management; Livongo, which provides coaching, monitoring devices and digital treatments for conditions including diabetes, hypertension, weight management and diabetes prevention solutions; Torchlight, a caregiver support solution; and Whil, a digital training platform for mindfulness, stress resilience, mental well-being and performance.
A good way to protect your portfolio is by investing in stocks that trade at modest multiples and offer good value for your money. CVS Health (NYSE: CVS) is a top name in healthcare, and although the company's known for its near-10,000 locations across the country, it's proving to be much more than just a pharmacy retailer. Investors who buy shares of CVS are investing in a solid healthcare company that's trading at some very attractive valuations.
MILWAUKEE, July 21, 2020 -- Douglas Dynamics, Inc. (NYSE: PLOW), North America's premier manufacturer and upfitter of work truck attachments and equipment, today announced that.
The U.S. had another near-record spike in coronavirus cases, prompting a growing number of major corporations to enforce masking in their establishments.
Amid record-breaking levels of volatility, we've witnessed the S&P 500 lose more than a third of its value in a five-week stretch, as well as the technology-dependent Nasdaq Composite set more than two dozen all-time closing highs. Despite inevitable stock market corrections and bear markets, the S&P 500 has historically gained 7% per year, inclusive of dividend reinvestment. One of the hardest-hit industries during the coronavirus crash were bank stocks, with Wells Fargo (NYSE: WFC) leading the way to the downside among money-center banks.
AT&T (NYSE: T), CVS Health (NYSE: CVS), and Planet Fitness (NYSE: PLNT) offer three ways to do just that. Under former CEO Randall Stephenson, AT&T completed gigantic acquisitions of DIRECTV and Time Warner. DIRECTV has been a problem, with subscriber numbers falling quarter after quarter.
When people think of CVS Health (NYSE: CVS), they probably think of the company's ubiquitous pharmacies, of which there are nearly 10,000 in the United States. CVS was once part of the Melville Shoe Corporation, which began as a three-store chain in 1892. The company's retail/long-term care segment, which includes in-store pharmaceutical sales and other in-store retail sales, said it brought in $86.6 billion, while its healthcare benefits segment recorded $69.6 billion in revenue.
(Bloomberg) -- Walgreens Boots Alliance Inc. plans to cut about 4,000 jobs in the U.K. following a sharp drop in its business there and suspend stock buybacks, as the coronavirus pandemic jolts its business around the world.On Thursday, Deerfield, Illinois-based Walgreens said it anticipates full-year adjusted earnings between $4.65 to $4.75 a share, including $1.03 to $1.14 a share of costs related to Covid-19. Analysts surveyed by Bloomberg were expecting $5.43 a share. Walgreens had previously withdrawn its financial forecasts, citing the turmoil caused by the coronavirus.“As a company we are facing significant challenges and are moving fast to overcome,” Chief Executive Officer Stefano Pessina said on a call with analysts.Drugstores are grappling with both short-term disruptions and potential longer-term changes in consumer behavior driven by Covid-19. Before the pandemic set in, Walgreens was already facing questions about how it planned to compete with rivals focusing on health care and internet giants sizing up the pharmacy business.Now, the playing field has changed once again, as the global spread of Covid-19 continues to alter both the health care and retail industries in unpredictable ways.Shares of Walgreens, which had dropped 28% so far this year through Wednesday, declined as much as 7.5% in morning trading in New York.Foot traffic plummeted 85% in April at the company’s Boots stores in the U.K. amid strict lockdown orders, resulting in a $700 to $750 million hit to total sales that forced Walgreens to record a $2 billion impairment charge. Overall, sales in the quarter, which ended May 31, were essentially flat compared with the same quarter a year earlier, at $34.6 billion.In the U.S., people rushed to stock up on prescriptions and toilet paper in the early days of the pandemic. Comparable sales at U.S. drugstores rose 3%.Fewer people came into stores in the quarter, with traffic down around 20% in the quarter, Chief Financial Officer James Kehoe said on the call. Those who did come in bought more, and sales of vitamins, personal-care products and grocery items improved. But beauty sales slipped and photo plummeted.Urban markets fared much worse than rural areas in the quarter, with sales down 18% compared with an 8% increase, respectively. Executives said they haven’t seen big differences in areas with intensifying outbreaks.Soaring CostsWalgreens said that a broad decline in visits to doctors’ offices and hospitals weighed on prescription volumes. Prescriptions filled at its U.S. drugstores fell 1.3% compared with the year-ago quarter, though volumes have shown “steady improvement” since the end of May.Costs associated with cleaning stores and boosting employee pay sent selling, general and administrative expenses soaring to $8.3 billion in the quarter from $6.2 billion in the year-ago quarter.Walgreens Boots Alliance’s co-chief operating officers will now split their focus by region, with Alex Gourlay leading the U.S. and Ornella Barra overseeing the U.K. and other international businesses, Pessina said. Executives said Walgreens’ digital initiatives and new shopping options like buying online and picking up in the drive-through helped boost sales in the quarter.To help expand its health-care offerings, Walgreens said Wednesday it plans to open as many as 700 doctors’ offices in its drugstores over the next five years. Rival CVS Health Corp. has already made big steps in that direction by buying insurer Aetna and making over stores to focus on patient care.After a number of attempts at in-store clinics, Pessina said its partnership with VillageMD to bring primary-care doctors into Walgreens stores appears to be the model that fits best.Walgreens posted a loss of $1.71 billion, or $1.95 a share, in the fiscal third quarter. On an adjusted basis, earnings per share came to 83 cents. Analysts surveyed by Bloomberg expected adjusted earnings of $1.19 a share.(Updates with comments from executives beginning in third paragraph)For more articles like this, please visit us at bloomberg.comSubscribe now to stay ahead with the most trusted business news source.©2020 Bloomberg L.P.
If you want to know who really controls CVS Health Corporation (NYSE:CVS), then you'll have to look at the makeup of...
Walgreens reports its Q3 FY20 financial results before the opening bell on Thursday, July 9. The question is should investors consider buying shares of the struggling pharmacy chain?
CVS Health (CVS) has an impressive earnings surprise history and currently possesses the right combination of the two key ingredients for a likely beat in its next quarterly report.
PJ SOLOMON, a leading financial advisory firm and independently-operated affiliate of Natixis, announced that Syed A. Husain, RPh, has joined as a Managing Director. PJ SOLOMON has long been active in the pharmacy sector.
Here at Zacks, our focus is on the proven Zacks Rank system, which emphasizes earnings estimates and estimate revisions to find great stocks. Nevertheless, we are always paying attention to the latest value, growth, and momentum trends to underscore strong picks.