E-commerce Earnings – Chargers NFL Official Online http://chargersnflofficialonline.com/ Thu, 22 Jul 2021 08:45:35 +0000 en-US hourly 1 https://wordpress.org/?v=5.8 https://chargersnflofficialonline.com/wp-content/uploads/2021/06/icon-6.png E-commerce Earnings – Chargers NFL Official Online http://chargersnflofficialonline.com/ 32 32 GMS Inc. (GMS) Q4 2021 Earnings Call Transcript https://chargersnflofficialonline.com/gms-inc-gms-q4-2021-earnings-call-transcript/ https://chargersnflofficialonline.com/gms-inc-gms-q4-2021-earnings-call-transcript/#respond Thu, 22 Jul 2021 08:45:31 +0000 https://chargersnflofficialonline.com/?p=62 GMS Inc. (GMS) Q4 2021 Earnings Call TranscriptImage source: The Motley Fool. GMS Inc. (NYSE:GMS) Q4 2021 Earnings Call Jun 24, 2021, 8:30 a.m. ET Contents: Prepared Remarks Questions and Answers Call Participants Prepared Remarks: Operator Greetings. Welcome to GMS Fourth Quarter Fiscal 2021 Earnings Conference Call and Webcast. [Operator Instructions] Please note this conference is being recorded. At this time, I will now […]]]> GMS Inc. (GMS) Q4 2021 Earnings Call Transcript

Image source: The Motley Fool.

GMS Inc. (NYSE:GMS)
Q4 2021 Earnings Call
Jun 24, 2021, 8:30 a.m. ET

Contents:

  • Prepared Remarks
  • Questions and Answers
  • Call Participants

Prepared Remarks:

Operator

Greetings. Welcome to GMS Fourth Quarter Fiscal 2021 Earnings Conference Call and Webcast. [Operator Instructions] Please note this conference is being recorded.

At this time, I will now turn the conference over to Leslie Kratcoski, with Investor Relations. Leslie, you may now begin.

Leslie H. KratcoskiVice President, Investor Relations

Thanks, Rob. Good morning, and thank you for joining us for the GMS earnings conference call for the fourth quarter and full year of fiscal 2021. In addition to the press release issued this morning, we posted presentation slides to accompany this call in the Investors section of our website at gms.com.

On today’s call, management’s prepared remarks and answers to your questions may contain forward-looking statements as defined in the Private Securities Litigation Reform Act of 1995. Forward-looking statements address matters that are subject to risks and uncertainties, many of which are beyond our control and may cause actual results to differ from those discussed today. As a reminder, forward-looking statements represent management’s current estimates and expectations. The company assumes no obligation to update any forward-looking statements in the future. Listeners are encouraged to review the more detailed discussions related to these forward-looking statements contained in the company’s filings with the SEC, including the Risk Factors section in the company’s 10-K and other periodic reports. Today’s presentation also includes a discussion of certain non-GAAP measures. The definitions and reconciliations of these non-GAAP measures are provided in the press release and presentation slides. Please note that references on this call to the fourth quarter and fiscal year 2021 relates to the quarter and year ended April 30, 2021. Once we begin the question-and-answer session of the call, in the interest of time, we kindly request that you limit yourself to one question and one follow-up.

Joining me today are John Turner, President and Chief Executive Officer; Scott Deakin, Chief Financial Officer; and Carey Phelps, Vice President of Investor Relations, who we recently welcomed to the company and is succeeding me upon my retirement this summer.

With that, I’ll turn the call over to J.T. J.T?

John C. Turner, Jr.President and Chief Executive Officer

Thank you, Leslie. Good morning, and thank you for joining us today. I’d like to take a minute to recognize the outstanding contributions that Leslie has made to GMS over the last several years. Leslie has led our IR function with professionalism, class and dignity, and has advanced our relationships across the spectrum of the investment community. She also has been a key member of our leadership team and has been a consistent source of common strength throughout the years and in particular, this last pandemic year. She has been instrumental in the development and execution of our strategic goals and I think we all recognize that our IR capability is light years ahead of where we were when she joined us. Thank you, Leslie. All of GMS wishes you well in retirement. I’m excited now to welcome Carey into our IR role and our team. We are very lucky to have found a capable professional so familiar with our space and our investment community.

During this morning’s call, I’ll start with a review of our operating highlights and then turn it over to Scott, who will cover our financial results. I’ll then share some closing thoughts before taking your questions. Starting on Slide 3, we delivered a strong finish to fiscal 2021 as evidenced by record levels of net sales, net income and adjusted EBITDA. Our entire team continued to effectively navigate what remains a very dynamic operating landscape. Through a sharp focus on execution, we successfully capitalized on opportunities created by strong residential market tailwinds and robust demand in complementary products to deliver solid results for the quarter even as we continue to face soft commercial market conditions, supply constraints and inflation. Despite these dynamics, our disciplined execution generated a 21% increase in net sales, including 17.1% growth organically.

The benefits of continued cost discipline and favorable operating leverage enabled us to improve SG&A and Adjusted SG&A as a percentage of sales for the fourth quarter in a row, while ensuring that we maintained the customer focus that continues to differentiate us in the market. As a result, adjusted EBITDA increased 43.5% and adjusted EBITDA margin rose 160 basis points to 9.8%. We generated positive free cash flow of approximately 80% of adjusted EBITDA and maintained strong financial flexibility, which was further enhanced with a senior notes offering and term loan repricing during the quarter. Our strong balance sheet and liquidity position enabled us to continue our focus drive for growth via both greenfields and acquisitions, which was meaningfully demonstrated with the acquisition of D.L. Building Materials in Canada and four greenfield openings in the U.S. during our fourth quarter.

In addition, after the conclusion of the fourth quarter, we entered into a definitive agreement to purchase Westside Building Material, one of the nation’s largest independent specialty interior product distributors. This highly strategic, well-managed business will greatly enhance our footprint and provide another exceptionally strong brand offering in California, while also affording us entry into the Las Vegas market.

Looking at Slide 4. For the full fiscal year 2021, we also generated record net sales, net income and adjusted EBITDA. Net sales increased 1.8% year-over-year to $3.3 billion. We realized a 6.5-year percent year-over-year increase in adjusted EBITDA to $319.4 million and a 50 basis point improvement in adjusted EBITDA margin to 9.7% for the year. Our disciplined adherence to the alignment of our cost structure at the onset of COVID-19 enabled us to realize a 100 basis point improvement in adjusted SG&A as a percentage of sales.

We exited the year with substantial liquidity and our free cash flow generation of roughly 40% of adjusted EBITDA contributed to a net debt leverage at fiscal year end up 2.5 times, the lowest level since our initial public offering five years ago. I would like to share my appreciation for all our teammates who met and overcame the numerous challenges presented by the COVID-19 pandemic throughout this past year. My congratulations and thanks go out to the entire GMS team who made our fiscal 2021 results possible, remaining engaged, focused and proactive as we came together in support of our customers, suppliers, communities and each other. At the same time, I would like to extend our gratitude to our customers for entrusting their business to us and to our suppliers for their ongoing partnership as they have both faced their own challenges in navigating the unprecedented circumstances throughout this period. We also express our thanks to our shareholders for their ongoing confidence and support.

With that, I’ll now turn it over to Scott to provide more perspective on our financial results for Q4. Scott?

Scott M. DeakinVice President, Chief Financial Officer

Thanks, J.T., and good morning. Before presenting our detailed results, I will note that the comparisons of our fourth quarter fiscal 2021 results to the prior year includes comparisons to March and April 2020. These periods featured widespread shutdowns and far ranging uncertainty, resulting in arguably the most difficult and drastically impacted months for us during the COVID-19 pandemic. While these dynamics were considered in our previously communicated fourth quarter outlook and clearly had a favorable impact on our year-over-year growth rates, it was the outstanding execution by our team and their commitment to our customers that drove our outperformance.

Specifically, looking at Slide 5, net sales for the fourth quarter increased 20.9% to $932.2 million, exceeding the outlook of low double digits provided on our Q3 earnings call. These gains collectively resulted from strong residential end markets, favorable pricing across product categories, the acquisition of D.L. Building Materials and as noted, COVID-related weakness during the prior year quarter. From an end market perspective, in the U.S., for example, residential sales showed considerable strength and were up double digits on both higher volume and price, while commercial sales which had continued to be sluggish from a volume perspective, were up mid single digits due to higher pricing and significant COVID-19 related volume weakness last year.

Excluding $15.8 million in acquisition related revenue and $13.7 million of favorable foreign currency translation, organic net sales increased 17.1%. As there was one more selling day in the fourth quarter of fiscal 2021 in the same period a year ago, net sales and organic net sales on a per day basis were up 19.1% and 15.3% respectively. As I review product segment performance, it’s important to note that for all product segments year-over-year sales were up as a result of both higher volumes and higher combined price and mix. I’ll also note that the impact of foreign currency translation has been excluded from the price mix component of the organic growth rates we have provided.

Wallboard sales of $376.9 million increased 6.6% year-over-year. On an organic basis, net sales of wallboard were up 13.3% comprised of a 9.8% volume increase and a 3.5% improvement in price and mix. In light of our response to supplier pricing actions over the past several quarters, our average realized wallboard price increased sequentially in each month of the quarter with the fourth quarter average of $329 per 1,000 square feet, up 5.3% from the third quarter and up 6.8% from where we ended the second quarter, which notably coincide with the first of the most recent series of supplier pricing actions back in October.

Ceilings sales of a $121.3 million increased 9.1% or 7% on an organic basis, due to a 1.8% volume increase and 5.2% in higher price and mix. Steel framing sales of $143.3 million increased 24.2% or 21.4% on an organic basis as a result of 7% higher volumes and 14.4 in higher price mix reflecting the upward movement in commodity steel prices, our realized steel pricing increased 16.8% sequentially from the third quarter with sequential increases in each month of the quarter. Sales of complementary products which we formerly refer to as other products were $290.7 million, increasing 31.4% year-over-year. On an organic basis, sales were up 25.4% due to strong volume demand and pricing in multiple product categories, our execution and strategic growth initiatives to increase complementary product sales and strengthen our Canadian business, for which complementary products comprises a larger portion — excuse me, larger proportion of sales.

Gross profit of $293.9 million increased 16.8% compared to the fourth quarter of fiscal 2020. As expected, gross margin declined from 32.6% a year ago to 31.5% for the fourth quarter of fiscal 2021, primarily due to unfavorable product mix as total wallboard comprised a lower percentage of our sales as compared to a year ago and within the Wallboard segment, residential comprised a greater percentage of our mix. In addition, we experienced a typical lag associated with passing through rapidly rising wallboard prices as we saw this quarter.

Turning to Slide 6. Adjusted SG&A expense as a percent of net sales of 21.9% improved 260 basis points year-over-year. Approximately 100 basis points of benefit was realized operationally from continued discipline cost containment and productivity initiatives. While the remaining 160 basis points of improvement was a result of favorable leverage from higher pricing broadly across our product lines. In summary, fourth quarter adjusted EBITDA of $91.2 million increased 43.5% from the prior year quarter and adjusted EBITDA margin improved 160 basis points to 9.8%. This represented an incremental adjusted EBITDA margin of 17%, which is in line with the higher end of the previously provided 10% to 2% outlook range.

Turning to Slide 7. We generated free cash flow of $72.8 million or 80% of adjusted EBITDA in the fourth quarter. This was a decrease from unusually high prior-year quarter, principally due to the company’s significant efforts to preserve liquidity at the end of fiscal 2020 in response to the COVID-19 pandemic, as well as proactive inventory build in this year’s fourth quarter in advance of the expected manufacturer price increases and to ensure product availability for our customers amid increasing supply constraints. As J.T indicated, free cash flow for the full year fiscal 2021 came in at 40% of adjusted EBITDA, and we maintain our through-the-cycle objective of generating free cash flow range of 40% to 50% of adjusted EBITDA.

Capital expenditures totaled approximately $12 million and $30 million for the fourth quarter and full year fiscal 2021, respectively. Looking forward, we currently expect cash, capital expenditures to fall within a range of $30 million to $35 million in fiscal 2022. Our strong free cash flow contributed to a reduction of our net debt leverage to 2.5 times at the end of the fiscal year from 2.9 times as of the end of the third quarter. As of April 30th, we had $167 million of cash on hand and an additional $453.8 million available under our revolving credit facilities, affording us ample resources for the ongoing pursuit of our strategic growth priorities.

Moving on to Slide 8. I’d like to take a few moments to review the debt transactions we undertook during the fourth quarter to further optimize our already strong and flexible capital structure. In April, we issued $350 million of eight-year senior unsecured notes bearing a 4 and 5 eights annual coupon. Proceeds of this issuance were used to repay a portion of outstanding borrowings under our secured term loan facility, which as of April 30th had $509.7 million remaining outstanding. Simultaneously, we amended our term loan facility to reduce the interest rate to LIBOR plus 2.5%, representing a 25 basis point improvement.

The senior note issuance enabled us to lock in attractive fixed rate unsecured debt for eight years, a lengthening of our weighted average debt maturity and it provides a more balanced term structure to our maturity ladders out to 2028. This transaction also freed up additional secured term loan capacity for potential use in the future. After giving effect to these transactions, we anticipate incurring approximately $55 million of interest expense in fiscal year 2022. As a final note for modeling consideration, we anticipate the normalized cash tax rate in our calculation and presentation of adjusted net income for fiscal 2022 to be in a range of 24% to 25% based on expected business and income mix.

With that, now me let me turn the call back over to J.T before we open the line for questions.

John C. Turner, Jr.President and Chief Executive Officer

Thank you, Scott. If you turn to Slide 9. While our tactical execution in fiscal 2021 was necessarily focused on overcoming the unprecedented challenges of the COVID-19 pandemic, we nonetheless remain relentlessly committed to our strategic growth priorities of expanding share in core products, growing our complementary products offering, platform expansion and improved productivity and profitability. Our fiscal 2021 progress on these four initiatives is evident on several fronts.

First, expanding share in core products, particularly in geographies where we are under penetrated. Specifically, our actions which we’re well under way prior to the pandemic to redeploy resources and increased penetration in residential construction in those geographies where we traditionally had less exposure enabled us to generate higher wallboard volumes year-over-year and provided an offset to the continued softness in commercial construction. In ceilings, we bolstered our distribution network throughout fiscal 2021, securing additional arrangements in several new markets, while strengthening existing arrangements in several others. As such, we believe we continue to expand share in both the Mineral Fiber and Architectural Specialty segments of the market, as evidenced by our sales levels compared to available market data.

Next, to diversify and profitably expand our product offering. We are focused on growing select complementary product opportunities outside of core products. Our multiple initiatives in both the U.S. and Canada are bearing fruit, as evidenced by 10.6% year-over-year growth in this segment in fiscal 2021, with positive year-over-year growth four quarters in a row despite the negative impacts of the COVID-19 pandemic.

Third, we are expanding our platform through accretive acquisitions and greenfield opportunities, while maintaining balance progress in debt reduction. During fiscal 2021, we opened six new greenfield locations in the U.S. We also acquired D.L. Building Materials for approximately $40 million, providing entrance to the important Ottawa-Gatineau market in Canada. These moves enabled us to extend our geographic presence to four new and attractive markets, including our first location in the province of Quebec. At the same time, with the strength of our free cash flow, we reduced our net debt by over $75 million in fiscal 2021. Our momentum in platform expansion continued into May, when we announced the signing of a definitive agreement to purchase Westside Building Material, one of the largest independent distributors of interior building products in the U.S. for $135 million. This exciting combination, which through 10 locations, expands and enhances our presence in multiple California metro areas and marks our entry into the Las Vegas market is expected to close next month.

And finally, to ensure that we deliver our best-in-class customer experience while continuing to drive productivity and further profit improvement, we are leveraging our scale and employing technology and best practices. We made significant progress in the deployment of our e-commerce platform in fiscal 2021, with most of our subsidiaries driving growth in customer accounts, online payments and proof of delivery, and our further deployment of business intelligence capabilities is putting actionable real-time data and insight into the hands of our field leaders. Finally, our 100 basis point improvement in adjusted SG&A margin and 50 basis point improvement in adjusted EBITDA are a testament to our successfully driving profitability.

Before making my closing remarks, a few thoughts about our first quarter outlook. We currently expect to generate year-over-year sales growth of approximately 20%, similar to what we realized in the fourth quarter as we expect a more difficult year-over-year comparison to be largely offset by higher benefits of pricing on net sales. In terms of profitability, we expect a continuation of pressured price cost dynamics, particularly in wallboard. As a result, we currently anticipate realizing a gross margin similar to the 31.5% realized in the fourth quarter and coupled with SG&A leverage and incremental adjusted EBITDA margin in the range of 10% to 15%.

Looking further out in fiscal 2022, the trajectory of inflationary pressures and supply constraints as well as the effect of those on our results in later quarters becomes more difficult to forecast. Nonetheless, we believe there is a fundamental support for continued strength in residential construction and while timing remains uncertain, early but encouraging indications of improvement in commercial construction are emerging.

Turning to Slide 10. In closing, GMS is well positioned for the long-term. As the North American market leader in the distribution of specialty interior construction products, we enjoy significant scale advantages, employ a differentiated service model and embrace an entrepreneurial culture. All three combined are enabling us to successfully execute for all of our stakeholders. At the same time, our strong free cash flow generation, balance sheet and liquidity provide not only near-term advantages in what remains a very dynamic operating environment, but enable us to pursue the long-term growth opportunities that makes this business so attractive. I am confident that our teams continued drive to execute the business and our strategy position us to generate value for our shareholders well into the future.

Rob, we are now ready to open the call for questions.

Questions and Answers:

Operator

[Operator Instructions] And our first question today is coming from the line of Keith Hughes with Truist Securities. Please proceed with your questions.

Keith HughesTruist Securities — Analyst

Thank you. A couple of questions. First on your commentary on commercial demand and some of the positive signs. When do you think some of the bid activity you’re discussing, when do you think that will actually show up in a meaningful shift in shipments?

John C. Turner, Jr.President and Chief Executive Officer

Well, the larger projects, Keith, is still out probably into calendar 2022. We’re starting to see some remodel activity kick in and we’re hearing from other participants in the market, not necessarily in our exact space, but other participants in the market that they’re seeing their pipelines fill back up from a remodel perspective and then you’re seeing that with the ABI and Dodge just came out with their Momentum Index and the Dodge starts numbers look to be improving. So I think the larger projects are probably still in ’22. But as you know, two-thirds of our business is remodel. So we think that we might see some green shoots here later in our in our fiscal year, maybe Q4 of our fiscal year.

Keith HughesTruist Securities — Analyst

Got it, OK. And regarding the — your revenue expectation for the July quarter, the first quarter, how much will the acquisition add to that if at all, the Westside side acquisition? Or is there going to be too lesser [Phonetic] to be meaningful?

John C. Turner, Jr.President and Chief Executive Officer

So we’re not — we didn’t put any numbers in here yet for Westside. So what we’re giving you is ex Westside for the quarter.

Keith HughesTruist Securities — Analyst

Okay. And final question. I’m sorry, go ahead.

Scott M. DeakinVice President, Chief Financial Officer

I was just going to add. In the release we talked about the size of that acquisition. We’re talking about maybe a month of sales within that accretive to that 20% we already talked about.

Keith HughesTruist Securities — Analyst

Okay. And then the accounts receivable was up a good year-over-year. If you could talk about that, what’s going on there?

Scott M. DeakinVice President, Chief Financial Officer

Look, I think it’s just really the overall trends of the business being up as much as it’s been. Collections have been really good. Bad debt expense has been really tempered and tamed, so we haven’t seen any increases there. It’s really just the dynamics of the cycle of revenue that we’re facing. And I don’t think there’s anything to be concerned about, its Just really related to what we’re seeing on the demand side.

Keith HughesTruist Securities — Analyst

Okay, thank you.

Scott M. DeakinVice President, Chief Financial Officer

I was just going to add to it. Overall, if you look at our overall working capital as a percent of sales, we’re still in that same 17-ish% sort of range that we’ve been operating at. So the netting across accounts receivable, inventory accounts payable, etc., is all consistent with prior trends.

Keith HughesTruist Securities — Analyst

Okay, thank you.

John C. Turner, Jr.President and Chief Executive Officer

Thanks, Keith.

Operator

Our next question is from the line of Mike Dahl with RBC Capital Markets. Please proceed with your questions.

ChrisRBC Capital Markets — Analyst

Hi, this is Chris [Phonetic] on for Mike. Thanks for taking our questions. Just touching on the the margin outlook for this year, obviously you’re expecting some additional pressure this next quarter. But I was wondering if you could maybe give us some additional color on your thoughts around the moving pieces, whether it’d be price costs or the residential mix pressures, and how that evolves through the year and whether you think kind of SG&A would be able to provide enough of an offset to keep gross margins moving higher this year?

John C. Turner, Jr.President and Chief Executive Officer

Your last question was would SG&A help our gross margins move higher this year. I think, you mean, yeah EBITDA margin.

ChrisRBC Capital Markets — Analyst

EBITDA margin, yeah.

John C. Turner, Jr.President and Chief Executive Officer

You know, our team has done a fantastic job and I think we’re well positioned from a cost perspective to continue to do that moving forward. There is some inflationary pressures out there, obviously. Fuel is more expensive than it was prior year. We expect labor to tighten up through the year as well. But all that being said, our guys are really doing a great job. Our whole team is very productive. And we’ve invested heavily in technologies and other things to help us be better from a productivity perspective. So I think we will continue to do well on the cost side.

I think that the reason we don’t talk much out beyond this quarter from a gross margin perspective is the fact that we’re dealing with some interesting environments for inflation with steel doing what it’s doing, and originally I think a month or two ago everybody thought maybe steel would settle back down toward the back half of the year, now we’re hearing maybe that’s not going to be the case. In wallboard, the industry just announced and implemented another increase in June, so we continue to chase that and that’s really — you hear us talk sequentially, mean sequentially our pricing is up really nicely and is continuing into this quarter. The issue is and so is the pace of price increases from the manufacturer. So if that settles down a little bit, I think like we said last quarter, we fully expect to catch back up and end up with a gross margin that’s closer to our long-term average. But at the moment, we’re just chasing things up on that side. So I think that we’re doing a nice enough job on the bottom line to keep making improvements over time. And we’ve stated the long-term objective is to breach the 10% number on an EBITDA basis. And I think that everyone here is aligned in that objective.

ChrisRBC Capital Markets — Analyst

Got it. That’s helpful. And then on the sales guide for next quarter, the 20%. Anyway you could help us with the building blocks there in terms of what’s being driven by volume and price and what’s your assumptions behind residential versus commercial growth?

Scott M. DeakinVice President, Chief Financial Officer

Similar to what we saw in this last quarter, you’re going to see a pretty heavy influence from price and mix, I’d say in the ballpark of probably 75% of that on an order of magnitude basis is going to come from price and mix and then the remaining portion of it is combined volume and FX, of which — of that is probably two-third volume, Just as were up building blocks and orders of magnitude of the drivers.

ChrisRBC Capital Markets — Analyst

That’s perfect. Thanks for that.

Operator

Thank you. Our next question is from the line of Matthew Bouley with Barclays. Please proceed with your questions.

Matthew BouleyBarclays — Analyst

Hey, good morning. Thanks for the question. Congrats on the results. Can I ask about pricing power, I guess in residential specifically because clearly manufacturer price increases are pretty widespread here in wallboard and you’re passing price along, although it sounds like there is a bit of a lag — to the extent the big builders are trying to leverage their purchasing and you got smaller builders just take some challenges across the basket of building materials. Are you finding that the receptivity to your own passing of price is sufficient effectively? Thank you.

John C. Turner, Jr.President and Chief Executive Officer

When I mean sufficient, we’d like it to be faster. How about that. Sufficient, I would say in that we still believe that once the price increases are allowed that we will again achieve the types of gross margins that we’re used to. On the other hand, it’s never sufficient to be trailing prior year margins. So I think that it is the market based upon what we’re showing sequentially in absolute pricing. And remember, our pricing is also a blended mix of all of our Board. So you’re having the negative impact of the residential mix in that price is it inflates. So we’re still showing really nice sequential improvement and continuing into this quarter.

So the answer to the question is, we’re seeing it happen. We’re certainly leading it in that respect and we’re also being the partners with our customers. I mentioned that I think on the last call and I’ve mentioned that in several other individual calls. We have to be good partners with our customers, right? I mean, they also have the — have to have the ability to plan their business and they have to have the ability to plan their pricing. So fortunately we are strong enough to be able to weather a month or two of increases before we pass them along. But that’s in essence to the pace that this is happening in three months, six months, it’s all — the pricing is in.

Matthew BouleyBarclays — Analyst

Got it. No, that’s really helpful, J.T. Second one on the gross margin side, the mix impact, specifically just with better resi versus commercial. Just any ability to put some numbers or just elaborate on that. Just what that headwind looks like? Because, obviously, what I’m getting at is to the extent some of these green shoots you’re seeing in commercial do manifest in better volumes later this year into calendar ’22, what the kind of benefit to the margin would be from commercial recovery? Thank you.

Scott M. DeakinVice President, Chief Financial Officer

I think, we stick to it in generalities. I mean, obviously, we gave you some indication leading into this quarter that we are going to be down at roughly 1 point based on some of those dynamics we are seeing. We’re talking about it being consistent for the first quarter. Generally, as we talk about margins, we generally try to guide toward EBITDA being the better indicator between resi and commercial because the operating dynamics of serving the commercial versus the residential market. So on balance, as that starts to — as commercial start to come back, we might see some general improvement on it and given the timing J.T talked about, that’s not likely to be a significant first quarter impact, but as you go later in the year, we’ll start to see a little bit of improvement in the gross margin side, offset by higher operating cost, but still get to a solid and positive EBITDA number overall. So I know those are generalities, but those are some of the dynamics that we’re facing.

Matthew BouleyBarclays — Analyst

Got it. That’s helpful. Thanks, Scott. And thanks, J.T.

John C. Turner, Jr.President and Chief Executive Officer

Thanks.

Operator

Our next question is from the line of Kevin Hocevar with Northcoast Research. Please proceed with your questions.

Kevin HocevarNorthcoast Research — Analyst

Hey, good morning. Nice quarter, everybody. Wondered if you could comment — on the SG&A side you guys called out, I think 160 basis points of — 260 basis points of leverage, a 100 basis points due to kind of operational cost containment and another 160 due to favorable leverage to pricing. So I’m wondering if you can kind of give us some color on how this evolves? Obviously, it seems like pricing continue to have momentum. So does that even get better, that 160 basis points that’s benefiting from pricing as wallboard steel, all these other things keep seeing more pricing flow through? Just trying to think about how to think about that SG&A leverage, potential here this year?

Scott M. DeakinVice President, Chief Financial Officer

The best way to do it is to — if you focus on, or J.T. talked about in terms of the relative drivers of growth, its a little bit different, a tougher compare quarter-over-quarter on a volume basis, but we’ve got higher pricing drop-through on that. So if you take that leverage impact, if we’ve got that sort of 100, 160 sort of order of magnitude this last quarter and you in factor in a little bit more pricing in the first quarter, I think you’ll see the relative impact of that drop-through we’ll see in the first quarter. I mean, generally on an operating basis we’re still seeing tight discipline on the operational side of our expenses. We’re seeing some increases in fuel. We’re seeing some as expected increase in compensation costs, salary cost, those types of things as people come back into the workforce to support what we’re seeing on the revenue side. And then we’re seeing some things, some operational expenses and things like insurance and the like. But generally we’re still keeping that take discipline on our expenses on the operating side, so they have that favorability from a leveraging effect on the price side should be pretty strong positive going into the first quarter as well.

Kevin HocevarNorthcoast Research — Analyst

Okay. And then, I know product had been — supply has been constrained, lead times are extended on all over the place. How is that — is there any improvements being seen in just product availability or is it just as tight as it’s been for the last several months?

John C. Turner, Jr.President and Chief Executive Officer

Well, certainly in steel I think it’s actually going to get a little worse as we move our way through the summer and then hopefully it frees up a little bit as we get into the fall. Wallboard is about where it has been. I guess, I would say that throughout this entire series of supply chain disruptions, really all kinds of products, right? I think that you’re seeing the leaders in this space be able to weather the storm and get the products that we need to support our customers. You’re also seeing us use our balance sheet in a way that allows us to have product available for our customers. That’s what they would expect. When we talk about scale advantages, these are the times to leverage that and to use that and to demonstrate to your customers what you mean by that. So I think that we’re doing a pretty good job. And I think that anything we are experiencing, I would expect others to be experiencing in a worst way. So while I don’t see it getting a lot better, I don’t see it getting a lot worse other than maybe steel. And steel is just going to continue to extend, the lead times are going to just continue to extend and the price is going to continue to to go up at least through the summer.

Kevin HocevarNorthcoast Research — Analyst

Okay, got it. Thank you.

Scott M. DeakinVice President, Chief Financial Officer

Thanks.

John C. Turner, Jr.President and Chief Executive Officer

Thanks, Kevin.

Operator

Thank you. The next question is coming from the line of Trey Grooms with Stephens. Please proceed with your questions.

Trey GroomsStephens — Analyst

Hey, good morning. Thanks, everybody.

John C. Turner, Jr.President and Chief Executive Officer

Hi, Trey.

Trey GroomsStephens — Analyst

Okay. First one from me is on the wallboard pricing. It’s sequentially up nicely. Scott, you gave us a number there for the end of the quarter, I think was $329. And I’m sorry if I missed this. But did you guys give us any or could you give us maybe some, maybe a little more clarity around how you’re thinking about the next couple of quarters on wallboard pricing? I mean, there was this June increase you know that you talked about. You’re implementing the April now. So I guess is it fair for us to assume that from a pricing standpoint on wallboard specifically, that we could see something similar continue from a pricing standpoint over the next couple of quarters as you work this through and kind of catch up on that front?

Scott M. DeakinVice President, Chief Financial Officer

So we talked about the average for the quarter at that $329 number. I can tell you we ended the quarter at $333. So progressively working up over the course of the quarter. And I think just given all the dynamics, you can expect that into May and June, we’ve seen further increases from there. Probably premature to give you anything. Frankly, we don’t know exactly that will shake out past this quarter and into future quarters, but all of the same dynamics are continuing. And to the prior question and J.Ts. answer to it, the acceptance of the market around it, the continued resolve from the supply side in driving those actions in the marketplace continue to be there. So I think we’ll see those trends along those general lines of progression continue.

Trey GroomsStephens — Analyst

Okay, fair enough. And then I guess on the complementary, I mean, this has been a big focus of yours, but clearly outperforming there. Can you talk about where you’re seeing specific strength, market share gains within that kind of category there of complementary?

John C. Turner, Jr.President and Chief Executive Officer

We’ve been very strong in Canada and in the U.S. So lumber is — and fire treated lumber, in particular commercial lumber packages, believe it or not, while commercial is down, it’s still something that we’ve been focused on here in the U.S. So lumber, we’ve experienced not only nice unit growth, but of course the very, very high pricing that’s going on in lumber over the course of the last year. Insulation, we continue to do better in insulation. We’ve had a focus on residential insulation, although we can’t get as much as we could sell, quite frankly. That’s one of the areas that’s more supply constrained than anything. I guess the good news for us is its still in total, not a massive number for us, but we continue to try to build that business and we’ve been doing very well on insulation.

Roofing in Canada, great performance by our team in roofing up in Canada as well. And then tools and accessories, we continue to push hard to be the choice of — to supply tools into our tradesman hands, right? Our smaller contractors and even the larger contractors that are in the tool buying business, the accessories buying business, things like fasteners and screws and all the finishing pieces that have to go into what we sell. All of that is doing very well. So I would just give you those categories as the primary drivers.

Trey GroomsStephens — Analyst

All right. Thanks, J.T and Scott. Thanks for the color. And Leslie, congrats on the retirement. And Carey, to you too, and look forward to working with you again. Thank you.

Leslie H. KratcoskiVice President, Investor Relations

Thanks, Trey.

Operator

Thank you. Our next question is from the line of David Manthey with Baird. Please proceed with your questions.

David MantheyBaird — Analyst

Hi, good morning, everyone. Most of my questions have been answered here, but maybe you could address the supply and demand dynamics within some of the non-res categories that you’re thinking about. J.T., you mentioned the outlook for steel over the next six months and I’m just kind of wondering what your assumption for demand trends are in that outlook? And then on the ceiling side, is there any chance that we see one of these situations where everyone assumes that there is not going to be great demand and then inventories are thin and demand comes back and there is supply shortages. Anything you can help us in terms of that supply and demand dynamic as we roll through the summer?

John C. Turner, Jr.President and Chief Executive Officer

I mean, I still expect commercial. I mean, we see commercial down in volume prop this quarter. We’re still rolling over kind of that COVID effect. But as you go forward, as we mentioned, we expect the whole comp to get harder on a volume basis because the recovery was beginning coming out of COVID, but those products primarily commercial from volume perspective. If we see any growth at all, low single digits, probably still the opportunity to see some decline in low single digits. But the prices are definitely up, with steel being up dramatically and going to continue to be up dramatically, lead times extended on steel. So I don’t think swing a point or two around zero. And that’s probably what you’re looking at for volume for the next couple of quarters anyway and then improving after that.

As far ceilings go, we had a big explosion in demand and in fact spectacular, but you’ll have to — you have to ask Armstrong [Phonetic] in USG if they’re prepared because from an inventory perspective, we’re not off the gap. I mean, we’re on the gap on inventory and we want to have it and we want to be able to sell it and fulfill our customers’ needs right now. So we’re not in a position where we would be caught, let’s say, in a bad way from an inventory perspective. As Scott said, as a percent of sales, all total working capital is right about where we’ve kept it over the years and even with higher sales. So we’re going to continue to focus on that and be the best distributor-supplier to our customer base and try to make it a little easier on them as they go through. You can imagine if its difficult on us trying to get material, imagine how difficult it is for the contractor to get material right now. So we’d like to be the guys helping them.

David MantheyBaird — Analyst

Okay, thank you. And second, when you talk about the pressured price cost dynamics, I understand the dynamic environment that we’re in right now. But what is the glide path looked like? I mean, how long do these commodities have to stabilize in price for you to catch up on the gross margin side?

John C. Turner, Jr.President and Chief Executive Officer

We’re pretty much caught up on everything other than wallboard. So, I mean, if you were to decompose our gross margin, I mean, we’re really — we’re really OK everywhere other than wallboard. And wallboard is not really all that terrible is just we’re selling less of it as a percentage of sales than we are selling everything else. And as I’ve said before, it’s three months to six months. Three months probably on the commercial side, closer to four to five to six months on the residential side to push it all, all the way through. But if you look at what Scott just said, $333, we are 3 — I think our Q2 last year was $308 and now we’re exiting at $333. That’s a fair amount of increase and I think you’ll continue to see us move on that kind of trajectory until the increases stop. And when those increases stop three months to four months later, you’ll probably see us be right back up into the normalized gross margin range as we get the price into the market.

I don’t see any big impetus to have the prices reverse dramatically in wallboard. On the other hand, steel is a commodity and lumber is a commodity that moves around a lot more aggressively, let’s say. So I can’t tell you what’s going to happen with lumber and steel. But I certainly think at some point in times the steel situation will resolve itself and you will see that price come backwards, not in the near term.

David MantheyBaird — Analyst

All right. Sounds good. Thanks, J.T.

John C. Turner, Jr.President and Chief Executive Officer

Thank you. Really appreciate it.

Operator

Thank you. At this time, I will turn the call back to Leslie Kratcoski for closing remarks.

Leslie H. KratcoskiVice President, Investor Relations

Thanks everyone for joining us today. A replay will be available on gms.com shortly. And as always, we appreciate your interest in GMS. Thanks a lot and have a good day. [Operator Closing Remarks]

Duration: 46 minutes

Call participants:

Leslie H. KratcoskiVice President, Investor Relations

John C. Turner, Jr.President and Chief Executive Officer

Scott M. DeakinVice President, Chief Financial Officer

Keith HughesTruist Securities — Analyst

ChrisRBC Capital Markets — Analyst

Matthew BouleyBarclays — Analyst

Kevin HocevarNorthcoast Research — Analyst

Trey GroomsStephens — Analyst

David MantheyBaird — Analyst

More GMS analysis

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Does Facebook’s stock have an increase of more than 10%? https://chargersnflofficialonline.com/does-facebooks-stock-have-an-increase-of-more-than-10/ https://chargersnflofficialonline.com/does-facebooks-stock-have-an-increase-of-more-than-10/#respond Tue, 06 Jul 2021 10:00:00 +0000 https://chargersnflofficialonline.com/does-facebooks-stock-have-an-increase-of-more-than-10/ Sign with the logo at the headquarters of the social network company Facebook in Silicon Valley, Menlo Park, … [+] California, November 10, 2017 (Photo by Smith Collection / Gado / Getty Images) Getty Images [Updated 07/06/2021] Facebook actions Facebook actions (NASDAQ: FB) has seen an increase of 28% since the end of 2020 and […]]]>

[Updated 07/06/2021] Facebook actions

Facebook actions (NASDAQ: FB) has seen an increase of 28% since the end of 2020 and according to Trefis’ valuation has an increase of 10.5%. In comparison, the S&P 500 has grown 14% since late 2020. Despite the coronavirus crisis, FB has seen its revenues and profits increase in 2020 as there has been an increase in the number of active users on media sites. social and individuals and organizations have moved to e-commerce benefiting from advertising revenue from Facebook. Momentum continued in the first quarter of 2021, with the company posting revenue of $ 25 billion, up 46% year-on-year, while profits improved to $ 3.34 per share , compared to $ 1.72 per share in the same period of the previous year. Daily active users averaged 1.88 billion for March 2021, an 8% increase year-over-year. First quarter ad revenue was driven by a 30% year-over-year increase in the average price per ad and a 12% increase in the number of ads served. We expect this momentum to continue in 2021. Our dashboard Buy or sell Facebook shares has the underlying numbers.

We are waiting Facebook revenue to increase 36% to $ 116.8 billion for 2021. In addition, its net income is expected to increase to $ 36 billion, increasing its EPS to $ 12.58 in 2021, which, associated with the multiple P / E of 31x, will lead to Facebook rating $ 390, or 10.5% more than the current market price.

[Updated 04/01/2021] Does Facebook’s stock have a 25% upside potential?

At the current price of around $ 288 per share, we believe Facebook actions (NASDAQ: FB) has growth potential of around 25% in the near term. FB stock has risen 120% since late 2018 compared to the S & P500 which rose 59% over the same period. Both revenues and profits increased in 2020 as the Covid-19 pandemic pushed individuals and organizations towards e-commerce and a shift in demand towards discretionary service products. These changes have given FB’s advertising business a boost in the second half of 2020.

Facebook initially protested Apple’s announced change to its privacy policies, which is expected to roll out in early spring. The new policy will force device users to choose to share information with developers. However, last week the CEO suggested it could strengthen the company in the long run by improving its in-app retail options. The Covid-19 pandemic and upcoming changes to iOS have prompted Facebook to step up its pace of deploying e-commerce functionality across its various platforms. However, the impact of Apple’s privacy changes on Facebook’s stock and the rest of the digital advertising industry remains to be seen. Over the past few years, the company has seen its profits rise as its P / E multiple has fluctuated.

Facebook’s revenue increased from $ 55.8 billion in 2018 to $ 86 billion in 2020. Net profit margin increased from 39.6% in 2018 to 33.9% in 2020. Per share, profit fell from $ 7.65 to $ 10.22 while the company recorded a decline of 1.3%. in outstanding shares.

During the same period, the P / E multiple fell from 17.1x to around 26.7x. The P / E improved slightly in 2021 and is currently around 28.2x.

Where is the stock going?

The global spread of the coronavirus has resulted in lockdowns in various cities around the world, which has affected industrial and economic activity. This, in turn, increased the number of active users on social media sites and individuals and organizations turned to e-commerce, benefiting Facebook ad revenue. Facebook saw revenue increase 22% to $ 85.9 billion in 2020. Revenue increased to $ 10.22 from $ 6.48 the year before.

The actual recovery and its timing depend on the wider containment of the spread of the coronavirus. Our dashboard Trends in Covid-19 cases in the United States provides insight into the spread of the pandemic in the United States and contrasts with trends in Brazil and Russia. Following the Fed’s stimulus – which set a floor on fear – the market was willing to “look through” the current period of weakness and take a longer view. With investors focusing their attention on the 2021 results, valuations become important in finding value. Although market sentiment may be fickle, and evidence of a slight uptick in new cases could scare investors again. In 2021, we forecast FB’s revenue to reach $ 105.4 billion, up 22.6% year-on-year. Additionally, its net profit is expected to reach $ 32.6 billion, increasing its EPS to $ 11.53, which, together with the P / E multiple of 31.3x, will lead to a Facebook valuation of around $ 360 per. share, up 25% from the current market price. .

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1 share to buy, 1 to throw away when the markets open: CrowdStrike, Pinduoduo https://chargersnflofficialonline.com/1-share-to-buy-1-to-throw-away-when-the-markets-open-crowdstrike-pinduoduo/ https://chargersnflofficialonline.com/1-share-to-buy-1-to-throw-away-when-the-markets-open-crowdstrike-pinduoduo/#respond Sun, 04 Jul 2021 12:16:26 +0000 https://chargersnflofficialonline.com/1-share-to-buy-1-to-throw-away-when-the-markets-open-crowdstrike-pinduoduo/ Shares on Wall Street rose on Friday, with the close at another new high after the latest report spurred optimism about the US economic recovery. The upcoming shortened holiday week – which will see the US stock markets close on Monday for Independence Day – is expected to be quiet on Wall Street, with little […]]]>

Shares on Wall Street rose on Friday, with the close at another new high after the latest report spurred optimism about the US economic recovery.

The upcoming shortened holiday week – which will see the US stock markets close on Monday for Independence Day – is expected to be quiet on Wall Street, with little data and moderate pre-earnings trading.

Whichever direction the market may take, below we highlight one security that may be in demand and one that may experience further decline.

Remember though, our timeline is fair for the coming week.

Share to buy: CrowdStrike

One of the largest and most sophisticated in history continued to expand over the weekend, affecting thousands of businesses around the world.

This could lead to more positive action for cloud-based cybersecurity firm Crowdstrike Holdings (NASDAQ :), whose technology is used to detect and prevent security breaches.

The ransomware gang known as “REvil” is suspected of hijacking widely used desktop management software provided by Miami, Florida-based technology provider Kaseya. The companies involved had files encrypted and ended up with email messages demanding ransom payments of thousands or millions of dollars.

In a statement on Saturday night, the FBI said it was investigating the ransomware attack in coordination with the U.S. Agency for Cybersecurity and Infrastructure Security.

CRWD stock, which hit a new record high of $ 260.79 on June 28, closed Friday’s session at $ 252.59, earning the Sunnyvale, Calif.-based cybersecurity specialist a valuation of $ 57 billion.

Shares of the leader in endpoint security have risen 19% year-to-date, reflecting growing demand for its cloud-based Falcon cybersecurity platform.

CrowdStrike reported significant decline and revenue when releasing its fiscal first quarter financial results on June 3, benefiting from increased spending on cybersecurity by businesses.

The fast-growing tech company, which has nearly half of Fortune 100 companies as customers, said it had a total of 11,420 customers at the end of its last quarter, up 82% from the previous year.

CrowdStrike is expected to outperform over the coming week, as it appears to be a major beneficiary of increased cybersecurity spending amid the surge in cyber attacks.

Stock to empty: Pinduoduo

Shares of Shanghai-based e-commerce giant Pinduoduo (NASDAQ 🙂 are expected to hold back in the coming days as investors worry about the negative impact of Chinese authorities’ scrutiny of the flat economy. -booming shape of the country.

PDD stock, which has fallen 11% over the past month and 33% year-to-date, closed at $ 119.20 at market close on Friday. It is now more than 40% below its all-time high of $ 212.30 reached on February 16.

At current levels, Pinduoduo has a market cap of $ 149.4 billion, making it the third largest e-commerce company in China by annual revenue, behind Alibaba (NYSE 🙂 and JD.com (NASDAQ :).

Daily PDD chart

The latest negative news came after China’s market regulator released draft rules to punish illegal pricing activities by e-commerce platforms, such as offering large discounts as well as the practice of charging different prices. based on the purchasing behavior of customers.

The rules are the latest in an ongoing effort by the Chinese State Administration for Market Regulation (SAMR) to curb tech giants that play a dominant role in China’s consumer sector.

Ultimately, market participants fear that Chinese authorities will step up further attempts against the country’s burgeoning e-commerce sector, including imposing fines and launching antitrust investigations.

In view of this, shares of PDD are expected to remain on the defensive in the days to come as the online marketplace platform provider faces difficult challenges ahead.

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After the makeover, Bed Bath & Beyond is ready for prime time again https://chargersnflofficialonline.com/after-the-makeover-bed-bath-beyond-is-ready-for-prime-time-again/ https://chargersnflofficialonline.com/after-the-makeover-bed-bath-beyond-is-ready-for-prime-time-again/#respond Fri, 02 Jul 2021 22:15:00 +0000 https://chargersnflofficialonline.com/after-the-makeover-bed-bath-beyond-is-ready-for-prime-time-again/ Text size These reports, extracted and edited by Barron’s, were recently published by investment and research firms. Reports are a sample of analysts’ thinking; they should not be taken as Barron’s views or recommendations. Some of the reporters have provided, or hope to provide, investment banking or other services to the companies analyzed. Bed bath […]]]>

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]]> https://chargersnflofficialonline.com/after-the-makeover-bed-bath-beyond-is-ready-for-prime-time-again/feed/ 0 Taboola begins trading on the Nasdaq under the symbol “TBLA”; Following strong first quarter earnings with heightened revenue and earnings expectations for the full year; The company is a leader in power recommendations for the open web https://chargersnflofficialonline.com/taboola-begins-trading-on-the-nasdaq-under-the-symbol-tbla-following-strong-first-quarter-earnings-with-heightened-revenue-and-earnings-expectations-for-the-full-year-the-company-is-a-leader-in/ https://chargersnflofficialonline.com/taboola-begins-trading-on-the-nasdaq-under-the-symbol-tbla-following-strong-first-quarter-earnings-with-heightened-revenue-and-earnings-expectations-for-the-full-year-the-company-is-a-leader-in/#respond Wed, 30 Jun 2021 11:00:00 +0000 The company supports the world’s best digital properties and connects advertisers with 500 million daily active users NEW YORK, June 30, 2021 (GLOBE NEWSWIRE) – Taboola, a global leader in open web recommendations helping people discover things they might like, today announced that it has become a publicly traded company traded on the Nasdaq under […]]]>

The company supports the world’s best digital properties and connects advertisers with 500 million daily active users

NEW YORK, June 30, 2021 (GLOBE NEWSWIRE) – Taboola, a global leader in open web recommendations helping people discover things they might like, today announced that it has become a publicly traded company traded on the Nasdaq under the new ticker symbol “TBLA “.

Taboola joins the Nasdaq at a time when online open web advertising spends more than $ 60 billion in spending annually. This market is highly fragmented and has traditionally relied on advertising formats such as banner ads, which may lack relevance and effectiveness. Taboola uniquely taps into this estimated $ 60 billion market through its recommendation platform that natively renders editorial and paid recommendations, in relevant contextual moments, on over 9,000 of the world’s premium digital properties with with which the company maintains direct relationships and for 13,000 direct advertisers. Taboola’s direct partnerships with digital properties and the inherent value of being an editorial recommendation engine position the company well in a dynamic privacy environment.

Taboola’s listing on Nasdaq comes after several recently announced milestones for the company, including:

  • First Quarter Revenue and Profits: Taboola reported revenue of $ 303 million and net income of $ 18.6 million in the first quarter of 2021, exceeding its original revenue and profit guidance and raising its expectations for the full year.

  • Extended Board of Directors: Advertising and publishing industry veterans Deirdre Bigley and Lynda Clarizio have been added to the Taboola board, effective April 2021. Taboola recently announced that Gilad Shany, CEO of ION , would also be added to its board of directors.

  • The big partner wins: New or expanded partnerships announced with several of the world’s largest publishers in 2021, including BBC Global News, Reach PLC, Sankei, Sinclair Broadcast Group, Dennis Publishing, Globes, Ynet and Are Media.

  • Investment in growth, product innovation and partners:

    • Recommend anything: As part of Taboola’s focus on recommending Anything, and as featured in its investor briefing, one of Taboola’s areas of growth is capturing video dollars from brands and agencies. multimedia. To achieve this goal, the company generated $ 90 million in video in 2020. Building on this progress, Taboola announced Taboola High Impact, a new advertising solution that combines the innovation of ad formats such as midpoint placements. article with transparency controls and access to proprietary readership data empower brand marketers and agencies to build brand awareness. The company also announced a collaboration with Oracle Moat Measurement bringing new control, choice and transparency through direct integration with Taboola’s media buying platform to advertisers working with Taboola.

    • Recommend anywhere: Taboola continued to expand its Apple News-style service integrations on Android devices, and in Q1 2021 launched new partnerships such as Samsung in Brazil.

As part of its publisher initiatives, Taboola has also released several product innovations. This included significant enhancements to Taboola Newsroom, allowing publishers to generate subscriptions using Taboola’s AI and advanced insights, sourced from its proprietary open web readership dataset. He also announced Taboola Stories, a new way for publishers to engage readers with the familiar and compelling format of “stories” users love on social media, and those known to be effective for e-commerce brands.

“Today is a milestone for Taboola, a milestone that cements our commitment to make recommendations and be the champion of the open web,” said Adam Singolda, CEO and Founder of Taboola. “Tens of thousands of advertisers and publishers have trusted Taboola since our inception over 13 years ago, enabling us to drive success in terms of revenue, engagement and business growth. hearing. I am so honored to work with our publisher and advertiser friends and look forward to the years to come. Thank you all for believing in us. As I wrote in my first quarterly letter to shareholders for investors, I’m delighted to have incredible investors on our journey – companies like Fidelity, Baron Capital, Federated and others. Most importantly, I am proud of the thousands of members of the Taboola team who have made all of our success possible. Thank you all. I love the open web, and there is so much in front of us – today is just the beginning.

About Taboola
Taboola provides recommendations for the open web, helping people discover things they might like. The company’s AI-powered platform is used by digital properties, including websites, devices and mobile apps, to drive monetization and user engagement. Taboola has long-term partnerships with some of the world’s largest digital properties, including CNBC, NBC News, Business Insider, The Independent, and El Mundo. Over 13,000 advertisers use Taboola to reach over 500 million daily active users in a secure environment for the brand. The company has offices in 18 cities around the world, including New York and Tel Aviv.

Learn more at www.taboola.com and follow @taboola on Twitter.

Disclaimer – Forward-looking statements
Taboola (the “Company”) may, in this communication, make certain statements that are not historical facts and relate to analyzes or other information based on forecasts or future results. Examples of such forward-looking statements include, without limitation, statements regarding future prospects, product development and business strategies. Words such as “expect”, “estimate”, “project”, “budget”, “plan”, “anticipate”, “intend to”, “plan”, “can”, “will”, “Could”, “” believes “,” predicted “,” potential “,” continue “and similar expressions are intended to identify such forward-looking statements, but are not the exclusive means of identifying such statements. By their very nature, forward-looking statements involve inherent risks and uncertainties, both general and specific, and there are risks that predictions, forecasts, projections and other forward-looking statements will not be achieved. You should understand that a number of factors could cause actual results to differ materially from the plans, objectives, expectations, estimates and intentions expressed in these forward-looking statements, including the risks set forth under “Risk Factors” in our statement. registration form. F-4 and our other SEC documents. The Company cautions readers not to place undue reliance on forward-looking statements, which speak only as of the date they are posted. The Company does not undertake or accept any obligation or commitment to publicly post any updates or revisions to forward-looking statements to reflect any change in its expectations or any change of events, conditions or circumstances upon which such statement is based.

CONTACT: Contact: Dave Struzzi dave.s@taboola.com
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Five things to watch in the Canadian business world in the coming week https://chargersnflofficialonline.com/five-things-to-watch-in-the-canadian-business-world-in-the-coming-week/ https://chargersnflofficialonline.com/five-things-to-watch-in-the-canadian-business-world-in-the-coming-week/#respond Sun, 27 Jun 2021 14:00:00 +0000 https://chargersnflofficialonline.com/five-things-to-watch-in-the-canadian-business-world-in-the-coming-week/ TORONTO – Five things to watch in the Canadian business world in the coming week: Corus gains: Corus Entertainment Inc. will hold a conference call to discuss its third quarter results on Tuesday. Executives announced on June 9 that “Big Brother Canada” would return for a 10th season as part of “flush-to-the-air” programming after a […]]]>

TORONTO – Five things to watch in the Canadian business world in the coming week:

Corus gains:

Corus Entertainment Inc. will hold a conference call to discuss its third quarter results on Tuesday. Executives announced on June 9 that “Big Brother Canada” would return for a 10th season as part of “flush-to-the-air” programming after a programming shortage due to pandemic production delays last year.

Shopify Conference:

The Shopify Unite developer conference kicks off on Tuesday. Chief Executive Officer Tobi Lutke and Chairman Harley Finkelstein said in April that the first models emerging in lock-free countries like New Zealand and Australia show consumers have embraced e-commerce even after COVID-restrictions were lifted. 19 and they expect North America to end up seeing the same thing.

Couche-Tard results:

Alimentation Couche-Tard will release its fourth quarter results on Tuesday. The Quebec-based convenience store operator announced in March that third-quarter revenue fell nearly 21%, with fuel volumes plunging 20% ​​in North America during COVID-19.

April GDP figures:

Statistics Canada is expected to release gross domestic product figures by industry for April on Wednesday. The agency reported in April that the Canadian economy grew at an annual rate of 6.5 percent in the first quarter of the year, bringing the country close to reaching pre-pandemic production. .

Benefits of Shaw Q3:

Shaw Communications will release its third quarter results on Wednesday. The Calgary-based telephone company Freedom Mobile was noticeably absent from a federal spectrum auction that began on June 14, as Rogers Communications’ $ 26 billion take-over bid for Shaw is under regulatory review.

This report by The Canadian Press was first published on June 27, 2021.

© Copyright Times Colonist

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Is Nike a Buy After Crushing Earnings Estimates? https://chargersnflofficialonline.com/is-nike-a-buy-after-crushing-earnings-estimates/ https://chargersnflofficialonline.com/is-nike-a-buy-after-crushing-earnings-estimates/#respond Sat, 26 Jun 2021 12:30:00 +0000 https://chargersnflofficialonline.com/is-nike-a-buy-after-crushing-earnings-estimates/ Nike (NYSE: NKE) reported an increase in demand at his business in its fiscal fourth quarter earnings report. Everything clicked – shoes, clothing, athletic gear – and the momentum spread to all geographies. Earnings per share of $ 0.93 exceeded analysts’ consensus estimate of $ 0.51. The stock price hit a new high above $ […]]]>

Nike (NYSE: NKE) reported an increase in demand at his business in its fiscal fourth quarter earnings report. Everything clicked – shoes, clothing, athletic gear – and the momentum spread to all geographies. Earnings per share of $ 0.93 exceeded analysts’ consensus estimate of $ 0.51.

The stock price hit a new high above $ 150 on Friday, following the announcement of the results. Should investors follow the crowd and buy at these highs?

A football field on the Nike corporate campus. Image source: Nike.

Digital is Nike’s asset

Revenue was up 96% from the quarter last year, but that added to an easy comparison, when revenue fell 41% last year due to store closings.

Still, comparison with the same quarter in 2019 shows how well Nike is really performing right now. On a comparable two-year basis, sales increased by 21%, with EPS up 50%. Most impressively, the region of North America, which is Nike’s most mature market, surpassed $ 5 billion in revenue for the first time in the last quarter.

Once again, as we’ve seen throughout the pandemic, growth has been driven by its digital business. Digital now accounts for 21% of the brand’s total revenue, and management believes it will get even better from there. “Today, we are better positioned to generate long-term sustainable growth than before the pandemic,” CEO John Donahoe said during the fiscal fourth quarter earnings call.

Nike’s digital advantage is membership, where demand from members continues to outpace growth in digital sales overall. Digital activity has more than doubled in recent years to reach $ 9 billion, including $ 3 billion from its 300 million members.

The company invested heavily in e-commerce before the pandemic. Between fiscal years 2018 and 2020, it acquired several companies to accelerate its direct-to-consumer infringement strategy. Specifically, the acquisition of Celect in 2019 improved Nike’s retail predictive analytics and demand sensing, which is clearly paying off.

Growth catalysts

In the short term, Nike has big catalysts with the return of sport and the Tokyo Summer Olympics. Marketing is one of the strengths of the company, where the Swoosh relies on superstar endorsers, like LeBron James and Cristiano Ronaldo, to present the brand to a large audience.

Nike is stepping up its digital marketing efforts behind the reopening to encourage people to get active. He said his Play New campaign on TikTok and Snapchat generated more than 600 million Gen Z impressions in two weeks. With these initiatives, Donahoe said the company’s goal is not only to gain market share, but “also to develop the whole market”.

On that note, Nike has raised its long-term growth forecast for BPA through mid-teens through FY2025. This is a small upward revision from the growth outlook for mid-teens published before the pandemic. Nike expects profits to be fueled by single-digit to double-digit revenue growth, with operating margin improving to a high level by fiscal 2025 .

The only short-term hurdles are continued supply chain delays and higher logistics costs that management expects to maintain for much of fiscal 2022. But this actually weighs in Nike’s favor in accelerating inventory turnover and increasing sales at full price. Management expects gross margin to improve by up to 1.5 percentage points in fiscal 2022, in part reflecting a strong full-price sale.

The best

At the current stock price of $ 152, Nike is trading at a futures price / earnings ratio of 39.6, which isn’t a value, but there aren’t many retailers with its share either. brand power, growth prospects and high returns on invested capital.

The stock is suitably cheaper than the faster growing stock lululemon athletics, and more expensive than the average for companies in S&P 500 index.

All in all, the price of this high-quality sportswear giant could be about right, which is why the stock is soaring after profits. With the rise of digital business, Nike remains one of the main retail stocks to buy.

This article represents the opinion of the author, who may disagree with the “official” recommendation position of a premium Motley Fool consulting service. We are heterogeneous! Challenging an investment thesis – even one of our own – helps us all to think critically about investing and make decisions that help us become smarter, happier, and richer.

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Nike (NKE) reports superior fourth quarter 2021 result https://chargersnflofficialonline.com/nike-nke-reports-superior-fourth-quarter-2021-result/ https://chargersnflofficialonline.com/nike-nke-reports-superior-fourth-quarter-2021-result/#respond Thu, 24 Jun 2021 20:21:46 +0000 https://chargersnflofficialonline.com/nike-nke-reports-superior-fourth-quarter-2021-result/ Nike on Thursday released fourth-quarter earnings and sales that beat analysts’ estimates, fueled by record revenues in its largest market, North America. It also offered better-than-expected sales prospects for the coming year, driven by optimism around its women’s category, its clothing business and the Jordan brand. Nike continues to benefit consumers looking for comfortable clothing […]]]>

Nike on Thursday released fourth-quarter earnings and sales that beat analysts’ estimates, fueled by record revenues in its largest market, North America.

It also offered better-than-expected sales prospects for the coming year, driven by optimism around its women’s category, its clothing business and the Jordan brand.

Nike continues to benefit consumers looking for comfortable clothing to wear for workouts but also at home. Even as people return to school, the office, and other social places, many are still looking for casual options like sneakers and stretchy pants.

Nike has also seen its wholesale business increase – something that was largely inactive a year earlier during the Covid pandemic, when malls and department stores had to temporarily close their doors and put orders for merchandise. on break. Some of Nike’s main wholesale partners include Dick’s Sporting Goods, Foot Locker, and JD Sports.

Nike shares jumped more than 12% in after-hours trading.

Here’s how the company fared in its fiscal fourth quarter, compared to what analysts expected, using Refinitiv’s estimates:

  • Earnings per share: 93 cents vs. 51 cents expected
  • Turnover: $ 12.34 billion against $ 11.01 billion expected

Nike’s net income for the period ended May 31 was $ 1.5 billion, or 93 cents per share, from a loss of $ 790 million, or 51 cents per share, a year earlier. This topped analysts’ expectations of 51 cents per share, using data from Refinitiv.

Total revenue reached $ 12.34 billion from $ 6.31 billion a year earlier, beating estimates of $ 11.01 billion. Sales were made easier by the company selling more products at full price and relying less on markdowns.

In North America, Nike’s largest market, sales more than doubled to a record $ 5.38 billion, as the company jumped from the previous year when the Covid pandemic hit the hardest. hit the retail industry hard. Sales in the region increased 29% over two years.

In Greater China, sales rose only 17% to $ 1.93 billion. Although China is generally one of the fastest growing markets for Nike, Chinese consumers have threatened to boycott after some Western brands, including Nike, expressed concern over allegations of forced labor in Xinjiang.

Management said Thursday that Nike is seeing month-to-month improvement in China.

“Building on our 40-year history in Greater China, we continue to invest in serving consumers with the best products Nike has to offer in locally relevant ways,” CFO Matt Friend said during a conference call after the results.

Digital sales increased 41% year-over-year and 147% year-over-year 2019.

The company said its membership model helps fuel its e-commerce business. Online purchases by Nike members, who enjoy first-time access to exclusive products and other perks, hit a record $ 3 billion in the fourth quarter. Nike said it now has more than 300 million members worldwide.

“Building on our momentum, we continue to invest in innovation and our digital leadership to lay the foundation for Nike’s long-term growth,” said John Donahoe, CEO of Nike.

In fiscal 2022, Nike expects revenue growth to a low double-digit percentage, exceeding $ 50 billion. Analysts were looking for annual revenue of $ 48.5 billion.

The company expects the first half of the year to grow faster than the second, Friend said.

“It’s important to note that as we normalize our post-pandemic business and continue to reshape the market, we don’t expect quarterly growth to be linear,” he said.

Nike also predicts that supply chain delays and higher logistics costs will persist for much of fiscal 2022. Headaches have plagued much of the retail industry for months now. A shortage of containers and a shortage of truck drivers, among other factors, have kept goods from moving from ports to warehouses to buyers’ homes.

Nike shares have fallen more than 5% since the start of the year. The company has a market capitalization of $ 211 billion.

Find the full press release on Nike’s results here.

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FedEx Fourth Quarter Sales, Higher Earnings Estimates As Ecommerce And Business Spending Rise https://chargersnflofficialonline.com/fedex-fourth-quarter-sales-higher-earnings-estimates-as-ecommerce-and-business-spending-rise/ https://chargersnflofficialonline.com/fedex-fourth-quarter-sales-higher-earnings-estimates-as-ecommerce-and-business-spending-rise/#respond Thu, 24 Jun 2021 20:05:46 +0000 https://chargersnflofficialonline.com/fedex-fourth-quarter-sales-higher-earnings-estimates-as-ecommerce-and-business-spending-rise/ FedEx (FDX) reported fourth quarter sales and profits that beat estimates as the shipping company’s results were boosted by the continued strength of e-commerce and a recovery in international business and shipments. However, stocks fell more than 3% late in the session as the impression failed to impress some on Wall Street hoping for a […]]]>

FedEx (FDX) reported fourth quarter sales and profits that beat estimates as the shipping company’s results were boosted by the continued strength of e-commerce and a recovery in international business and shipments.

However, stocks fell more than 3% late in the session as the impression failed to impress some on Wall Street hoping for a stronger pace.

Here are the key metrics from the FedEx report, compared to consensus estimates compiled by Bloomberg:

The Memphis, Tennessee-based company increased sales by 30% from last year, or the fastest pace since at least 2010, based on Bloomberg data dating back more than a decade . Results for the three months ending May were aided by a consumer who still buys heavily online, as well as increased business-to-business shipping spending as vaccinations ramp up and more businesses reopened in the spring.

“Fourth quarter operating results increased primarily due to volume growth and disciplined revenue and portfolio management,” the company said. declared in its income statement. “These factors were partially offset by costs to support strong demand, increased variable compensation costs and higher labor rates.”

The outlook for FedEx has also beaten estimates. The company said it expects annual adjusted earnings to be between $ 20.50 and $ 21.50 per share, excluding certain items, as consensus analysts sought 20.48 $ per share.

Along with high shipping demand, the company also demonstrated strong pricing power, which helped support overall margins and profits for the quarter. FedEx Express parcel and freight standard rates have increased 4.9% on average for many American services at the start of the year, and a number of other surcharges also came into effect later in 2021. This extended a number of surcharges introduced in 2020 because the transport giant passed the costs associated with the higher volumes on to its customers.

A FedEx driver delivers a parcel cart Thursday, May 6, 2021 in New York City. (AP Photo / Mark Lennihan)

And with businesses across industries reporting supply chain constraints and shortages, many customers may have increased spending on the company’s more expensive express shipping options in the fourth quarter, suggested. some analysts. Commercial shipments tend to provide higher margins in general for FedEx than residential shipments, providing another point of strength for the company’s fourth quarter.

“We believe that a strong price trend and a cyclical improvement in B2B [business-to-business] volumes support margin expansion in Ground and Express, ”UBS analyst Thomas Wadewitz wrote in a note before earnings. The company is pricing FedEx shares as a buy, with a 12-month price target of $ 383.

FedEx shares have risen just over 17% year-to-date, surpassing the S&P 500’s 13.6% increase during that period.

This post is broken. Check back for updates.

Emily McCormick is a reporter for Yahoo Finance. Follow her on Twitter: @emily_mcck

Read more from Emily:

Emily McCormick is a reporter for Yahoo Finance. Follow her on Twitter: @emily_mcck

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Lightspeed POS Inc. (NYSE: LSPD) Expected to Report Earnings of $ -0.17 per Share https://chargersnflofficialonline.com/lightspeed-pos-inc-nyse-lspd-expected-to-report-earnings-of-0-17-per-share/ https://chargersnflofficialonline.com/lightspeed-pos-inc-nyse-lspd-expected-to-report-earnings-of-0-17-per-share/#respond Thu, 24 Jun 2021 19:17:30 +0000 https://chargersnflofficialonline.com/lightspeed-pos-inc-nyse-lspd-expected-to-report-earnings-of-0-17-per-share/ Equity research analysts expect Lightspeed POS Inc. (NYSE: LSPD) to report earnings of ($ 0.17) per share for the current fiscal quarter, according to Zacks investment research. Four analysts have released estimates for Lightspeed POS earnings, with the lowest EPS estimate at ($ 0.28) and the highest estimate at $ 0.09. Lightspeed POS posted earnings […]]]>

Equity research analysts expect Lightspeed POS Inc. (NYSE: LSPD) to report earnings of ($ 0.17) per share for the current fiscal quarter, according to Zacks investment research. Four analysts have released estimates for Lightspeed POS earnings, with the lowest EPS estimate at ($ 0.28) and the highest estimate at $ 0.09. Lightspeed POS posted earnings per share of ($ 0.14) in the same quarter last year, indicating a negative year-over-year growth rate of 21.4%. The company is expected to release its next quarterly earnings report on Monday, January 1.

According to Zacks, analysts expect Lightspeed POS to report annual earnings of ($ 0.63) per share for the current fiscal year, with EPS estimates ranging from $ 1.05 to $ 0.27. For the next fiscal year, analysts expect the company to post earnings of ($ 0.53) per share, with EPS estimates ranging from $ 0.94 to $ 0.19. Zacks EPS Averages is an average based on a survey of analysts who provide coverage for Lightspeed POS.

A number of research companies have recently published reports on LSPD. Cormark downgraded Lightspeed POS from a “market performance” rating to a “buy” rating in a report released on Friday, March 12. Morgan Stanley raised its target price on Lightspeed POS from $ 79.00 to $ 80.00 and gave the company an “equal weight” rating in a research note on Friday, May 21. BTIG Research increased its target price on Lightspeed POS from $ 104.00 to $ 115.00 and gave the company a “buy” rating in a research note on Friday, May 21. CIBC increased its target price on Lightspeed POS from $ 135 to $ 140.00 and gave the company an “outperformance” rating in a research note on Tuesday, June 8. Finally, Raymond James lowered his target price on Lightspeed POS from $ 114.00 to $ 105 and set an “outperformance” rating for the company in a Friday May 21 research note. An investment analyst rated the stock with a conservation rating and eleven gave the company’s stock a buy rating. Lightspeed POS has an average “Buy” rating and a consensus price target of $ 95.18.

Lightspeed POS stock traded up $ 2.09 at noon on Thursday, reaching $ 84.72. 95,012 shares of the company were traded, for an average volume of 808,575. The 50-day moving average price of the share is $ 69.04. Lightspeed POS has a 52-week low of $ 23.73 and a 52-week high of $ 84.90. The company has a market cap of $ 10.89 billion and a P / E ratio of -104.54.

About Lightspeed POS

Lightspeed POS Inc provides a software as a service (SaaS) platform enabling commerce for small and medium businesses, retailers, restaurants and golf course operators in Canada, United States, Germany, in Australia and abroad. Its SaaS platform allows customers to interact with consumers, manage transactions, accept payments, and more.

See also: Reverse Stock Split

Get a Free Copy of Zacks Research Report on Lightspeed POS (LSPD)

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This instant news alert was powered by narrative science technology and MarketBeat financial data to provide readers with the fastest, most accurate reports. This story was reviewed by the MarketBeat editorial team prior to publication. Please send any questions or comments about this story to [email protected]

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