Tag Archives: earnings

Visa exceeds revenue expectations, but travel category remains slow to return | Instant News


Visa Inc. beat third-quarter earnings and revenue guidance on Tuesday, but the company saw volume shrink as the COVID-19 crisis continued to dampen spending growth, especially in the travel category. V shares, -0.08% were down 2% in after-hours trading. The company posted net income of $ 2.4 billion, or $ 1.07 per share, compared to $ 3.1 billion, or $ 1.37 per share, in the previous year’s quarter. Adjusted earnings came in at $ 1.06 per share, while analysts polled by FactSet expected $ 1.03 per share. Visa revenue fell to $ 4.84 billion from $ 5.84 billion, while the FactSet consensus called for $ 4.82 billion. Payments volume fell 10% for the quarter, while cross-border volume declined 37%. Excluding intra-European transactions, cross-border volume fell by 47%. The company said in its earnings release that it has seen spending improve every month in the fiscal third quarter, as more countries begin to ease restrictions on economic activity linked to coronaviruses. Payments volume “significantly improved” in the United States as the quarter progressed, which gave card presentation spending a boost as e-commerce spending “remained consistently high” offsetting sales. travel expenses. Transactions processed fell 13% in the quarter on a global basis. Visa said this measure was delayed by volume growth “as the spending mix moved away from smaller transactions.” Cross-border volume “improved only marginally in the quarter” given the persistent restrictions on travel, a key source of this type of spending activity. Management is not providing a full year outlook given the uncertainties surrounding COVID-19. Visa kicked off a busy week in payments revenue, with PayPal Holdings Inc. PYPL, -0.96%, ready to post after Wednesday’s closing bell and Mastercard Inc. MA, -0.81% Thursday morning. Visa shares have gained 15% in the past three months as the Dow Jones Industrial Average DJIA, -0.77%, of which Visa is a component, rose about 9%. .



image source

TUI, Ryanair, and other travel agencies fight virus resurgence in Spain | Instant News


Text size People walk along Las Ramblas street in Barcelona on July 25, 2020. The Catalan government has ordered the closure of all nightclubs, discos and event venues in this northeastern region of Spain. Spain following an increase in coronavirus cases. AFP via Getty Images Shares of TUI AG lowered travel inventories in Europe on Monday, following the weekend’s announcement by the UK government that any traveler from Spain would face around 40 14 days. The UK abruptly put Spain back on a dangerous travel list, amid a recent spike in Covid-19 cases in parts of the country. Norway has also imposed a quarantine on all Spanish vacationers, while France and Belgium have urged travelers to avoid beaches in the Catalonia region, where cases have increased. TUI shares fell 14%, followed by a 13% drop for easyJet. International Consolidated Airlines, which operates British Airways and other carriers, fell 8%, as did Ryanair, which separately reported a loss of € 185m for the end-June quarter which saw 99% of its traffic nailed to the ground. Carnival and InterContinental Hotels, Wizz Air and On The Beach also fell. TUI has reportedly canceled holidays until August 9 in mainland Spain, countering new outbreaks under control as it tries to save its important tourist season. Resurgences have not been observed in the most popular island destinations for British travelers, such as Ibiza and Mallorca. Ángel Víctor Torres, President of the Canary Islands tweeted on Saturday that the Spanish government is working with the UK to create secure corridors to the islands. Look forward. Unfortunately, this Spanish quarantine announcement is unlikely to be the last of its kind, with outbreaks across Europe likely to provide a summer stop-start for airlines as different regions attempt to shut down everything. surge at Covid-19, “said Joshua Mahony, senior market analyst at IG, in a note. And fears of more sudden changes in government travel policies will only hurt small surges in consumer confidence in travel, analysts at Jefferies warned in a note. This “could lead to a weaker late market (customers decide whether to stay or not to take a vacation) and a delayed booking cycle for next year,” said a team led by Becky Lane, who assesses the underperformance of TUI. A team of Citi analysts, led by James Ainley, reiterated a TUI sales note on Monday. The risk for the group of travelers is that “the advice remains in place for a longer period of time leading to further cancellations and, most importantly, the lingering uncertainty is likely to weigh on bookings.” Ryanair said on Monday that a “second wave of Covid-19 cases across Europe in late fall is our biggest fear right now.” No doubt, it is not the only one. .



image source

Airlines confirm fears that travel demand fell as new COVID-19 cases rose again in July | Instant News


Several airlines have confirmed what many feared, that the recent spike in COVID-19 cases in many US states has prompted consumers to rethink their travel plans, as the economy begins to recover from trade lockdowns in spring. It is no surprise that airlines suffered heavy losses in the second quarter as they operated only a fraction of the flights they took a year ago, with the coronavirus crisis in top gear. start of the quarter. But carriers reported significant improvements in results over the quarter, with lockdowns being gradually lifted across the country, helping to fuel the release of pent-up travel demand. Also read: Coronavirus Update: Global COVID-19 Cases Surpass 15 Million As United States Closes To 4 Million, California Has More Cases Than New York City. “While it’s natural to expect the strong growth rebound in May and June resulting from the reopenings to fade, we believe the signal that July spending gains are moderating also reflects the related drag failures to break the link between mobility and the virus. ” – Michael Hanson of JP Morgan in his “Daily Economic Briefing” research note. But as mid-July approaches, as many states started reporting record daily increases in new COVID-19 cases, government data showed the number of travelers started to decline again last week, ending a long series of weekly increases. Here’s what airlines that have released their results since Wednesday have said about July’s demand: • American Airlines Group Inc. AAL, + 3.60% – “While the revenue trends for May and June were encouraging , demand weakened somewhat in July as cases of COVID-19 increased and new travel restrictions were put in place. “• Southwest Airlines Inc. LUV, -1.53% -” We were encouraged by improving leisure passenger traffic trends in May and June, compared to March and April; however, trends of improving revenues and bookings recently stagnated in July with the increase in COVID-19 cases. Alaska Air Group Inc. ALK, + 1.01%, of Alaska Airlines Chairman Benito Minicucci on analyst conference call after results, according to FactSet transcript – “[W]We have seen some of these upward trends stall more recently, as many areas we fly have seen an increase in the number of cases, which has resulted in many local reopening plans. • Spirit Airlines Inc. SAVE, + 1.08%, from Chief Commercial Officer Matt Klein in a post-earnings call with analysts, according to a FactSet transcript – “We were very encouraged by the trends we were seeing for summer trips throughout the month of June. But sadly, as the headlines turned negative in mid-June regarding the increase in COVID-19 cases, demand for July has receded somewhat. • United Airlines Holdings Inc. UAL, + 4.92% Commercial Director Andrew Nocella in post-profit call with analysts, according to a FactSet transcript – “The recent spike in COVID cases in late June and early July temporarily blocked demand improvements. saw in June. United also said in its earnings press release: “The company will continue to proactively assess and cancel flights on a rolling 60-day basis until it sees signs of a recovery in the economy. request, and expects the request to remain suppressed until the availability of a widely accepted treatment and / or vaccine for COVID-19. The comment follows data from the US Transportation Security Administration showing that travel demand fell last week to break a string of 12-week increases since the COVID-19 low in mid-April. Don’t Miss: Airline inventories drop as travel demand declines for the first time in 13 weeks. And so far this week, the daily average of people passing through TSA checkpoints has fallen further, to 598,901 from an average of 664,022 for the week ended Sunday, and to 609,179 in the first three weeks of the month. last, according to a MarketWatch analysis of TSA Data. And there are fears that the decline in consumer demand has started to spread to other sectors of the economy. • Michael Hanson of JP Morgan, in his Thursday memo “Daily Economic Briefing” – “While it is natural to expect the big rebound in growth in May and June resulting from the reopenings to fade away, we believe that the signal that July spending is moderation also reflects the trails associated with failures to sever the link between mobility and the virus. At the same time, the airline industry held up well in a large stock market movement on Thursday, with US exchange-traded fund Global Jets JETS, + 0.55% up 0.6%, while the index S&P 500 SPX, -1.23%, fell 1.2%. So far this year, however, the Jets ETF has fallen 48.3% while the S&P 500 has edged up 0.2%. .



image source

Southwest Airlines (LUV) posts second quarter loss, warns of weak demand due to coronavirus | Instant News



Southwest Airlines planes sit on the tarmac at Fort Lauderdale-Hollywood International Airport on February 20, 2019 in Fort Lauderdale, Fla. Joe Raedle | Southwest Airlines said on Thursday it lost $ 915 million in the second quarter from $ 741 million in net income a year earlier and warned that travel demand will likely remain depressed until there is a vaccine or a treatment for coronavirus. weeks, echoing comments from other airline executives who said a spike in Covid-19 cases coupled with travel restrictions in states like New York have hurt ticket sales which have started to fall. recover at the end of spring. Revenue fell nearly 83% to just over $ 1 billion from $ 5.9 billion last year, although sales for the quarter were higher than analysts’ estimates. “We were encouraged by improvements in leisure passenger traffic in May and June trends, compared to March and April; however, improving revenue and booking trends recently stagnated in July with increasing cases. of COVID-19, “CE O Gary Kelly said in a results release. “We expect demand for air travel to remain depressed until a vaccine or therapeutics are available to fight the infection and spread of COVID-19.” posted a loss per share of $ 2.67 on an adjusted basis, roughly in line with analysts’ forecasts. .



image source

Netflix Ted Sarandos contributes to co-CEO, showing the importance of original content | Instant News


While investors may pay more attention Netflix Inc. and a disappointing Outlook for the second half On Thursday afternoon, the promotion chief content officer Ted Sarandos in a CO-officer may be main news of the day because of what he’s talking about Netflix, and where it is headed.

Netflix
However, nflx,
+0.78%

explained this move as a confirmation of the fact that for many years, CEO reed Hastings referring to Sarandos, and his partner for two decades. What it actually says, though, that Hollywood is just as important or perhaps more than Silicon valley company that has developed differently than just about any other high-profile technology startup from San Francisco.

Sarandos is seen among investors as Mr. Hollywood is the main face of the company in Los Angeles among film studios, where he oversees the teams make deals with existing studios and the purchase of content, while chief product officer Greg Peters Silicon valley, making sure the company’s streaming technology operation and maintenance of all its new subscribers with the content.

The moves also clear succession planning in the company, as a co-founder of the Hastings approaching retirement age.

“Ted did a phenomenal job with the content and it is clear that, as he approaches 60, Reid wanted to spend more time on other interests, so the transition makes sense,” said an analyst at Wedbush securities Michael Pachter via e-mail.

More from Teresa: Unclear the court’s decision can play havoc with the revenues of technology companies

With this announcement, Netflix is clearly the message that its next leader will be the person in Los Angeles to dine with a show of magnates, and not Executive in Los Gatos, California, making sure servers are running and the algorithms. Sarandos will retain his title of chief content officer and will also serve as Director on Netflix. Peters was appointed chief operating officer in addition to his main role of an officer of goods and is set to be the No. 2 in Hastings, Sarandos after to take leave.

“This change makes formal what has been unofficial — that Ted and I share the leadership of Netflix,” Hastings said Thursday.

Sarandos was with Netflix since 2000, and as one of the main characters in the popular canadian Netflix in the sitcom “Schitt Creek,” he made a name for himself in business first in the video rental market. Before he joined the company Netflix, he was Vice President, product and merchandising in the video-rental services of Video city/West coast video, but quickly turned into a key role in Netflix after he joined. He is also credited for getting the City started in original content.

When asked during an interview with the analyst of the company if his promotion meant that Hastings now will have more time to relax, Sarandos said that it was unlikely.

“We need to start with, the chances that Reid is going to rest a little lower level,” he said, adding that Hastings was an example for him over the last 20 years. “We had some of the most difficult decisions the company has made over the years, solutions from mailing DVDs in the U.S. for streaming around the world,” he said.

Full coverage of income: Netflix adds more than 10 million new subscribers, but the stock tanking

While the two leaders is guided by the streaming giant that it is today, it is clearly the new tasks ahead, how big a lift your company subscription of shelter-in-place seems to be over. One of them can be co-CEO structure that Chaim Elazar Segal, OOO Advisers noted, it can be difficult for companies to navigate.

“Reed Hastings is a genius behind Netflix. The continuity plans, so at some point it’s gone,” he said. “Sarandos has done an incredible job, of course, on the side of the content, but there is no replacement for Reid. Co-leaders are also not an amazing structure for companies.”

Netflix will have to navigate some treacherous waters next year with the two leaders shared the helm. In June, the number of paid additional subscribers were actually down, Siegel said. Adding additional pressure in the first half of next year, new content will be slower, since the production of new shows was thwarted because of the epidemic of the coronavirus.

“Year-to-date figures only expected to build through the year. So, as of the end of the quarter, net of the cancellation of their leadership for growth of a member is not actually conservative. If they were to see a cleaner cancellation in July, August, it will be wrong.”

Netflix says While the world slowly opens from COVID-19 lock, its priority is to resume production safely and in compliance with local health standards. Programming for 2020 remains almost unchanged, but for 2021, the suspension of production will lead to bigger titles launching in the second half.

These titles were largely the result of the work Sarandos in southern California, and he is rewarded with a Prime location in the upper part of one of the biggest names in technology. If he is able to navigate through the rest of the COVID-19 pandemic, along with Hastings, it seems, Netflix will led him Mr. Hollywood for many years.

.



image source