Higher Coca-Cola Amatil on the cards as volumes grow
- In a trading update on Friday, Coca-Cola Amatil confirmed that soft drinks, water and juice volumes had returned to growth in Australia in the December quarter – rising 0.4 per cent – after falling for at least three consecutive quarters.
- CCA group managing director Alison Watkins expects full-year earnings before interest and tax to fall 13.9 per cent to $550.7 million and net profit to come in around $340.3 million, well ahead of market consensus of $309.8 million.
- Coca-Cola Amatil shareholders believe CCEP may lift its offer for CCA after the trading update or the full-year results on February 18.
- Four Amatil shareholders – Dublin-based Setanta Asset Management, Martin Currie Australia, Antares Capital and Pendal Group – have said CCEP's offer is opportunistic and the price undervalued the business.
Apple will soar 15% higher as work-from-home demand drives record sales, Morgan Stanley says
- Record December-quarter sales are set to kick off a hugely positive year for Apple, Morgan Stanley said Thursday.
- Morgan Stanley expects Apple's revenue and profits to hit all-time highs in the fiscal first-quarter report, despite more conservative forecasts from investors.
- Early indicators point to above-consensus iPhone and Services revenues, and recent market trends stand to amplify a post-earnings pop, the team said in a note to clients.
- Past earnings reports from Apple showed investments in its Services and Wearables businesses offsetting slowing iPhone sales.
- Yet the iPhone 12 lineup unveiled in late 2020 should reinvigorate handset revenue, Morgan Stanley said.
- The 5G-capable iPhones were Apple's most successful product launch in five years, and demand continues to outstrip supply despite 78 million forecasted shipments in the December quarter, according to the team.
- Both Morgan Stanley's fiscal first-quarter and full-year projections for iPhone shipments exceed the consensus forecast.
United Airlines lost $7B in 2020, will prepare for recovery in 2021 - Business Insider
- The Chicago-based airline said it aimed to cut about $2 billion of annual costs through 2023 as it charts a recovery from the coronavirus pandemic that drove its fourth straight quarterly loss.
- The airline company is set to receive about $2.6 billion in payroll support through March, and said it expects to offer employees options like voluntary leave to reduce furloughs after that time.
- United Airlines lost $1.8 billion in the third quarter — normally the busiest travel season of the year — as the coronavirus pandemic triggered.
- United Airlines' adjusted net loss was $2.1 billion, or a loss of $7 per share, in the fourth quarter ended December 31, compared with a profit of $676 million a year earlier.
- In the current quarter, United Airlines said it expects revenue to fall by 65% to 70% from a year ago and its flight capacity to shrink by at least 51%.
Zip valuation frustrates boss after 'absolutely cracking' quarter
- Peter Gray, co-founder of Australia's second-largest buy now, pay later player Zip Co, has labelled its December quarter result "absolutely cracking" and questioned investors' reluctance to value it on similar multiples to rivals Affirm, Afterpay and Sezzle.
- Mr Gray has a point on the valuation gap, as over the December quarter Afterpay posted total transaction value (TTV) of $4.1 billion versus Zip's $1.6 billion, and both businesses enjoy similar merchant fee margins.
- If Zip were valued on a similar multiple to Afterpay's 10 times quarterly TTV (as the closest proxy to revenue) its share price would be $28.90 on a $16 billion valuation, versus $6.67 today on a $3.7 billion valuation.
- For investors in the sector, value is a white-hot potato and Mr Gray is probably correct in suggesting investors prioritise Afterpay because it has the shortest receivables books (only offering loans over fixed eight- or 10-week periods).
Netwealth adds $5b as wealth platforms rally
- Shares in investment technology provider Netwealth surged 12 per cent on Thursday after reporting record growth of $4.8 billion in investor funds over the December quarter.
- Investors added $2.6 billion in funds to Netwealth's flagship wealth and superannuation platform over the last three months of the calendar year, up 33.7 per cent on the previous quarter.
- The market update follows archrival Hub24 unveiling a personal best of $1.7 billion in net inflows for the December quarter, triggering a market rally that resulted in a record share price of $24.78.
- Westpac had the largest share of the platform market with $155 billion under management, or 18.5 per cent, at September 20, according to Plan for Life, followed by AMP with 15.8 per cent and CBA's Colonial First State with 15 per cent.
United Airlines Offers Grim Outlook but Seeks to Rebuild
- on Wednesday said it expects the coronavirus pandemic will continue to weigh on travel demand this year as the airline turns its focus to rebuilding itself.
- United reported a net loss of $1.9 billion for the fourth quarter, compared with a profit of $641 million in the same period a year earlier.
- While the outlook for the next few months remains dim for airlines, United said it has gotten a handle on how to survive its immediate challenges and outlined the broad strokes of its plan to exceed its 2019 profit margins by 2023, through a combination of returning travel revenue and cost-cutting.
- said it lost $12 billion in last year, also its worst-ever annual performance.
- The two airlines’ dismal results reflect the damage the pandemic has inflicted on airlines.
- are set to report fourth-quarter results next week.
Porsche adds a cheaper, lighter Taycan to its electric lineup
- It's just called the Porsche Taycan—no S, no Turbo, not even any numbers—and it differentiates itself from the other Taycans by virtue of having just a single electric motor, which drives the rear wheels.
- The standard Taycan comes with a 79.2kWh (total capacity) pack and a rear motor capable of 321hp (240kW) and 250lb-ft (339Nm), boosting up to 402hp (300kW) and 254lb-ft (344Nm) if you use launch control.
- If you want a little more power and a little more range, the Taycan is also available with a 93.4kWh (again, total capacity) "Performance Battery Plus." This bumps the price to $85,680 (again, before incentives) but also increases power to 375hp (280kW), or 469hp (350kW) and 263lb-ft (357Nm) when using launch control.
- What makes the entry Taycan even more intriguing is the fact that it's cheaper than a 911, even before you account for the $7,500 IRS tax credit.
Procter & Gamble Gets Shoppers to Pay Up
- sales surged in the most recent quarter, fueled in part by demand for high-end household products from pricey dish soap to a $300 electric toothbrush.
- Despite a tough economic picture and high unemployment, the maker of Gillette razors and Pampers diapers said consumers are increasingly willing to pay more for products.
- And P&G;, armed with extra cash following years of downsizing and solid sales, has been churning out a range of high-end items including laundry-detergent pods designed for extra-large washing machines and a special line of Gillette shaving products.
- P&G; raised its estimates for full-year organic sales growth to between 5% and 6%, up from the previous range of 4% to 5%.
- Sales in P&G;’s grooming unit, which includes Gillette razors, rose 5%.
- Sales in P&G;’s health-care unit, which includes dental care as well as over-the-counter medications, rose 9%.
Netflix crosses 200 million susbcribers milestone
- New York (CNN Business) - Netflix — which was founded in 1997 as a rental company that sent you DVDs in the mail — crossed a major milestone on Tuesday, further solidifying itself as one of the most influential companies in Hollywood.
- The streaming service said it now has more than 200 million subscribers globally after adding 8.5 million subscribers in the fourth quarter of 2020, beating its own expectations.
- Netflix's fourth quarter profit in 2020 was $542 million, down from $587 million in the year-earlier quarter.
- Its revenue jumped 21%, to $6.6 billion.
- The company's stock jumped 8% in after-hours trading following the company's earnings.
- This is a developing story.
Netflix Tops 200 Million Subscribers for the First Time
- ended last year with more than 200 million subscribers, a milestone powered by consumers left homebound by the coronavirus pandemic and rising demand in international markets where the streaming giant has a head start over many rivals.
- Netflix on Tuesday said it added more than 8.5 million subscribers on a net basis in the fourth quarter, a gain that surpassed its forecast for the period.
- Overall, Netflix signed up what it said was a record 37 million subscribers in 2020 and had a total of 203.7 million users when the year finished up.
- The company’s subscriber count has roughly doubled since the third quarter of 2017, when it first exceeded 100 million paying customers.
- The Los Gatos, Calif., company said it generated $6.64 billion in fourth-quarter revenue, up from $5.45 billion for the year earlier and exceeding analysts’ forecasts.