Monthly Archives: April 2018

Best Financial Stocks To Buy Right Now: C

Citigroup Inc. (C), America’s fourth-largest asset bank, said that with President Donald Trump’s cut in corporate tax rates, tax revenues fell, and stock trading income rebounded with market volatility, profit in the first quarter climbed 13%. It is sluggish in 2017.

The bank said in a statement on April 13th that net income increased to US$4.62 billion from US$4.09 billion in the same period last year. Adjusted earnings per share climbed to $1.68, surpassing the average analyst estimate of $1.61 in a survey conducted by database provider FactSet.

Citigroup Profit Climbs 13% as Stock-Trading Revenue Jumps

Like Wall Street rival JPM, Citigroup benefited from Trump’s tax cuts as its corporate tax rate fell from 31% to 24%. According to the Responsive Political Center, Citi has lobbied for the new bill.

As traders speculated that the Fed’s interest rate hikes, the trade tensions between the US and China, and the data privacy scandal of Facebook Inc. (FB), the bank also benefited from the recovery of the stock market volatility. The key indicator of the market volatility of the Cboe Volatility Index VIX The average increase of 43% in the quarter.

The volatility rekindled investors’ weakness last year, as the unusually quiet market kept investors on the sidelines and Wall Street Bank’s traders did not have the opportunity to make gains from sharp fluctuations.

Citigroup’s stock trading revenue increased by 38% to US$1.1 billion, while fixed-income trading revenue decreased by 7% to US$3.42 billion.

Earlier Friday, JP Morgan Chase, the largest bank in the United States, said that its first-quarter profit rose by 35%, thanks to tax cuts and improved trade performance.

Citigroup’s other Wall Street rivals – Bank of America (BAC), Goldman Sachs Group (GS) and Morgan Stanley (MS) – will announce their results next week.

Bed Bath & Beyond Stock Tanks on Weak Guidance

Bed Bath & Beyond Inc. (Nasdaq:bbBY) shares fell more than 18% on Thursday, as the company’s 2018 earnings guidance is far from consensus, and investors are questioned about the company’s navigation in a harsh retail environment. ability.

On the surface, the fourth quarter of Bed Bath&Beyond does not seem bad.

The company announced earnings per share of $ 1.48, higher than the market expected $ 1.41. The fourth quarter revenue was $3.72 billion, most of which was in line with Wall Street forecasts.

Same store sales are also a bright spot. Comps fell only 0.6% this quarter, and the market is generally expected to drop 2.3%.

Bed Bath & Beyond even increased its quarterly dividend by 1 cent to 16 cents per share.

However, the blockbuster that has caused investor confidence is Bed Bath & Beyond’s guidance that earnings per share for 2018 will be “as low as $2”. Analysts had expected EPS of $2.77 in 2018.

The guidance shows that Bed Bath & Beyond will continue to go down the same-store sales, profit margins and revenue decline this year. In the past 10 quarters, the same-store sales growth rate was negative in 8 quarters, and the gross profit margin decreased from 41.3% in FY2012 to 35.9% today.

For Bed Bath and Beyond investors, the situation has become quite bad. In the past three years, the stock price has dropped by 75.8%. However, analysts say things may get worse from here.

Simeon Gutman, an Morgan Stanley analyst, said that the business is unlikely to improve in 2019 and that the 2019 forecast for earnings per share may drop to around US$2.

Gutman said: “The company’s gross profit reserves are still under pressure and have fallen by 500 basis points in the past six years. “Savings turning online are obviously damaging to profit margins, and so is the upgrade promotion environment. ”

LOS ANGELES, CA - APRIL 10: Customers carry bags from Bed Bath & Beyond store on April 10, 2013 in Los Angeles, California. The home goods retailer is expected to release fourth-quarter earnings figures after the closing bell. (Photo by Kevork Djansezian/Getty Images) KeyBanc analyst Bradley Thomas said that long-term investors should remain cautious until Bed Bath & Beyond shows clear signs that its investment efforts are paying off. “We support management’s investment in the enterprise and still hope they start to benefit from the top line,” said Thomas.

“Ultimately, we are still worried that with the rapid development of the consumer/retail industry, potential trends may become worse.”

Both Morgan Stanley and Key Banc have BBBY stocks with a “low” rating and a $16 price target.