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[ad_1] The post Netflix Reports Strong Subscriber Gains but Guidance Disappoints appeared first on Millennial Money. Dominant video streaming service Netflix (NASDAQ: NFLX) reported second quarter earnings on Tuesday evening, and investors were not impressed. The company also announced a bold pivot into video games, which it plans to include in its subscription at no additional cost. At the same time, Netflix is facing some tough year-over-year comparisons as subscriber growth in 2020 was supercharged by the COVID-19 pandemic. Netflix shares have dipped by as much as 5% on Wednesday following the release.  How Netflix fared in Q2 Revenue in the second quarter increased 19% to $7.3 billion, which was mostly in-line with what Wall Street was expecting. That resulted in earnings per share of $2.97, missing the consensus estimate of $3.16 per share in profits.  Netflix added 1.5 million paid memberships in the second quarter, compared to its internal forecast of 1 million and the consensus estimate of 1.2 million. Growth is being driven by the Asia-Pacific (APAC) geographic segment, which represented roughly two-thirds of subscriber additions. As its most mature market, North American memberships declined modestly in the second quarter. Netflix had increased prices in the United States late last year, while competition among major streaming providers is intensifying, so some churn can be expected. The company notes that the crisis introduced greater volatility in reported results. “The pandemic has created unusual choppiness in our growth and distorts year-over-year comparisons as acquisition and engagement per member household spiked in the early months of COVID,” Netflix wrote in its letter to shareholders. Risky business Investors may also have some concerns around the gaming strategy, which may prove to be a risky—and expensive—endeavor. Netflix has already experimented with interactive content, as some of its shows allow viewers to make choices that impact the narratives. The company says it views gaming as “another new content category,” and it will start by focusing on mobile games. Yet, mobile gaming is intensely competitive and development can be costly. Netflix will have to cover those expenses and hope that games can boost engagement, attract more subscribers, or both, since it plans to include games at no additional cost. It’s a risky bet, but could potentially pay off. A lackluster forecast Investors are fretting over Netflix’s guidance, which came in below expectations. The company’s outlook calls for paid net additions of 3.5 million in the third quarter, while analysts are looking for 5.46 million in subscriber additions.  Growth is starting to normalize. Netflix notes that its forecast would translate into 54 million paid net additions over the past two years, or 27 million per year. That level of additions is comparable with the company’s growth rate in pre-pandemic conditions. Additionally, much of Netflix’s new content releases have been pushed into the second half of 2021 due to production delays in 2020 related to the COVID-19 crisis. That means Netflix will incur more content costs while subscriber growth slows. Pick Like A Pro Where to invest $500 right now Before you buy Amazon, or Netflix, or Apple, consider this… The team at Motley Fool first recommended each of those stocks more than a dozen years ago! They discovered Netflix for $1.85 per share, back in the days of DVDs by mail. And recommended Amazon at $15.31 in 2002, before most people were comfortable using credit cards online. And even hit Apple at $4.97 per share, about a month before the release of the very first iPhone. Check out where those stocks are today. The bottom line: a $500 investment in all three of these stocks would be worth more than $200,000 today! And here’s why that’s important: The Motley Fool’s flagship investing service Stock Advisor just announced their top 10 “best buys now” across the entire stock market. Whether you’re starting with $100, $500, or more, you’ll want to get the full details! Email Address Continue Also opt-in to receive Millennial Money! It’s our newsletter devoted to helping you achieve financial freedom. That means you’ll receive new stock ideas, our favorite side hustles, and much more every single week! By submitting your email address, you consent to us keeping you informed about updates to our website and about other products and services that we think might interest you. You can unsubscribe at any time. Please read our Privacy Statement and Terms & Conditions. window.onload = function(event) { if (!document.getElementById(‘ecap-async-js’)) { Sentry.captureMessage(“MMCTA Plugin Failure: ecap.js not enqueued”); } }; Click here to learn more .tmfsa-text-widget .ecap-widget { padding: 0 !important; border-left: 0 !important; } The post Netflix Reports Strong Subscriber Gains but Guidance Disappoints appeared first on Millennial Money. [ad_2] Source link

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[ad_1] The post Netgear Shares Tank on Lackluster Results and Disappointing Outlook appeared first on Millennial Money. Networking equipment maker Netgear (NASDAQ: NTGR) reported second quarter earnings on Wednesday evening, and the results missed expectations on multiple fronts. The company continues to struggle with supply chain challenges as the global semiconductor shortage persists, impacting countless sectors. As of 12:15 p.m. on Thursday, Netgear stock had tanked by 10%. Supply chain bottlenecks held back the top line Revenue in the second quarter increased 10% to $308.8 million, but analysts were looking for $314.8 million in sales. While the shift to remote work has boosted demand as people upgrade home networking equipment, the logistics bottlenecks limited sales. “Worldwide supply chain constraints, however, such as component shortages, increased freight costs and transit times, and factory closures due to COVID-19, led to a perfect storm of factors that held back our revenue number and saw us fall short of our operating margin goals,” CEO Patrick Lo commented. “As we continue to navigate through this rapidly changing environment, our long-term thesis that premium WiFi will drive the growth of the consumer networking market and our service subscriber base remains intact.” Lo expects the consumer networking market to grow 20% above pre-pandemic levels in the second half of the year, and Netgear has a dominant 46% market share in the U.S. consumer WiFi market. During the quarter, Netgear launched a new subscription service that includes greater parental controls. Nighthawk and Orbi routers support the offering, which allows parents to manage how much time their children spend online as well as providing filters for inappropriate content. The subscription, which costs $8 per month or $70 per year, joins another existing service, Netgear Armor, which provides cybersecurity to home networks. The company hopes to have 650,000 total subscribers by the end of the year. That all resulted in adjusted earnings per share of $0.66, also shy of the consensus estimate of $0.71 per share in adjusted profits.  Challenges ahead Netgear’s guidance also left a bit to be desired. The company is forecasting revenue of $285 million to $300 million in the third quarter, well below the Street’s models that call for $346.4 million in sales. Netgear is working with channel partners to optimize inventory levels while expecting the broader networking market’s growth to “moderate further.”  The small- and medium-sized business (SMB) segment will continue to face supply constraints, which is a major factor contributing to the lackluster outlook. The SMB segment comprised roughly 25% of revenue last quarter. Of course, the COVID-19 pandemic continues to ravage many markets and create ongoing uncertainties around macroeconomic conditions, particularly around the consumer electronics supply chain. Netgear expects its adjusted operating margin in the third quarter to be in the range of 5% to 6%, in part due to the loss of operating leverage since sales are expected to decline on a sequential basis. Pick Like A Pro Where to invest $500 right now Before you buy Amazon, or Netflix, or Apple, consider this… The team at Motley Fool first recommended each of those stocks more than a dozen years ago! They discovered Netflix for $1.85 per share, back in the days of DVDs by mail. And recommended Amazon at $15.31 in 2002, before most people were comfortable using credit cards online. And even hit Apple at $4.97 per share, about a month before the release of the very first iPhone. Check out where those stocks are today. The bottom line: a $500 investment in all three of these stocks would be worth more than $200,000 today! And here’s why that’s important: The Motley Fool’s flagship investing service Stock Advisor just announced their top 10 “best buys now” across the entire stock market. Whether you’re starting with $100, $500, or more, you’ll want to get the full details! Email Address Continue Also opt-in to receive Millennial Money! It’s our newsletter devoted to helping you achieve financial freedom. That means you’ll receive new stock ideas, our favorite side hustles, and much more every single week! By submitting your email address, you consent to us keeping you informed about updates to our website and about other products and services that we think might interest you. You can unsubscribe at any time. Please read our Privacy Statement and Terms & Conditions. window.onload = function(event) { if (!document.getElementById(‘ecap-async-js’)) { Sentry.captureMessage(“MMCTA Plugin Failure: ecap.js not enqueued”); } }; Click here to learn more .tmfsa-text-widget .ecap-widget { padding: 0 !important; border-left: 0 !important; } The post Netgear Shares Tank on Lackluster Results and Disappointing Outlook appeared first on Millennial Money. [ad_2] Source link

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[ad_1] During the quarter, the bank made Covid-19 provision of Rs 285 crore, taking the total Covid provisions to Rs 1,000 crore. [ad_2] Source link

[ad_1] The National Association of Realtors reported existing home sales for the month of June were under their estimates slightly. The seasonally adjusted annual rate of 5.86 million achieved in June was a bit better than my expectations, ending four months of declines. If existing home sales were getting noticeably weaker, we would expect the sales trend to be around 5.3 million, which would be back to 2019 levels. But that is not what is happening. Every single existing home sales print this year indicated an annual rate of sales higher than the total existing-home sales in 2020. As I anticipated, Americans are buying more homes with mortgages in the years 2020-2021 than any single year from 2008-2019. The years 2022-2023 will be the sweet spot years because ages 30 to 31 will make up the biggest age group in history. Almost four months ago, I wrote that based on the year-over-year growth in purchase applications, the housing market should have a few existing home sales prints under 5,840,000. I wrote: “The rule of thumb I am using for 2021 is that existing home sales if they’re doing good, should be trending between 5,840,000-6,200,000. This, to me, would be considered a good year for housing. This also means that we should have some prints above 6,200,000 like we have had already and below 5,840,000, which hasn’t happened yet. We ended 2020 with 5,640,000 existing home sales, which was only roughly 130,000 more than 2017 levels.” This content is exclusively for HW+ members. Start an HW+ Membership now for less than $1 a day. Your HW+ Membership includes: Unlimited access to HW+ articles and analysis Exclusive access to the HW+ Slack community and virtual events HousingWire Magazine delivered to your home or office Become a member today Already a member? log in The post Existing home sales show strength of demographics appeared first on HousingWire. [ad_2] Source link

[ad_1] The post Domino’s Pizza Stock Soars on Q2 Earnings and Buyback Program appeared first on Millennial Money. Ubiquitous pizza chain Domino’s Pizza (NYSE: DPZ) reported second quarter results on Thursday, delivering a strong earnings beat for investors as new menu items resonated with consumers. The company also initiated a new share repurchase program to return cash to shareholders.  As of 11:30 a.m. on Thursday, Domino’s stock was up 11%. Delivering a strong quarter Total revenue in the second quarter came in at $1.03 billion, topping the consensus estimate of $972 million in sales. Same store sales in the U.S. grew by 3.5%, while international comps jumped by an impressive 13.9% (when excluding the impact of foreign currency fluctuations). Like many national restaurant chains, Domino’s saw a surge in demand during the pandemic as people ordered food from the safety of their homes. Domino’s had already spent many years investing heavily in its technology infrastructure, which ended up positioning it well for the shift towards online ordering that was accelerated by the crisis. Additionally, Domino’s has been introducing new offerings such as taco or cheeseburger specialty pizzas. Domino’s has also been expanding its retail footprint, opening 238 new stores worldwide during the quarter. That included 35 new locations in the United States and another 203 in international markets. Due to unprecedented conditions in 2020, the company believes that it is more useful to compare its performance to pre-pandemic levels. “Given our current operating environment, we are watching our two-year sales trends anchored to pre-COVID fiscal 2019 results,” CEO Ritch Allison commented in a release. “I am pleased that in the second quarter our cumulative two-year same stores sales were up 19.6% domestically and 15.2% internationally, signifying meaningful and sustained growth.” That all resulted in adjusted earnings per share of $3.12, easily beating the $2.88 per share in adjusted profits for which Wall Street analysts were modeling.  Strengthening the capital structure During the quarter, Domino’s had kicked off a $1.85 billion recapitalization transaction to effectively refinance some debt while adding some cash to the balance sheet. The company used some of the money to enter into a $1 billion accelerated share repurchase (ASR) program, where an investment bank assists in buying back stock in the open market over time. Domino’s completed the ASR and also issued a special dividend of $13.50 per share. With that ASR in the rearview mirror, the company’s board of directors has now authorized a new $1 billion share repurchase program, as the previous $1 billion buyback authorization has now been fully utilized. The company notes that the changes to its capital structure can impact comparability of historical results. Domino’s finished the fiscal quarter with $292.1 million in unrestricted cash and $5.1 billion total debt. The company’s cash flow—Domino’s generated $262.3 million in free cash flow during the quarter—is sufficient to service that debt while the recapitalization will also help reduce interest expense. Pick Like A Pro Where to invest $500 right now Lots of new investors take chances on long shots instead of buying shares of great companies. I prefer businesses like Amazon, Netflix, and Apple — they’re all on my best stocks for beginners list. There’s a company that “called” these businesses long before they hit it big. They first recommended Netflix in 2004 at $1.85 per share, Amazon in 2002 at $15.31 per share, and Apple back in the iPod Shuffle era at $4.97 per share. Take a look where they are now. That company: The Motley Fool. For people ready to make investing part of their strategy for financial freedom, take a look at The Motley Fool’s flagship investing service, Stock Advisor. They just announced their top 10 “best buys now” across the entire stock market. Whether you’re starting with $100, $500, or more, you should check out the full details. Email Address Continue Also opt-in to receive Millennial Money! It’s our newsletter devoted to helping you achieve financial freedom. That means you’ll receive new stock ideas, our favorite side hustles, and much more every single week! By submitting your email address, you consent to us keeping you informed about updates to our website and about other products and services that we think might interest you. You can unsubscribe at any time. Please read our Privacy Statement and Terms & Conditions. window.onload = function(event) { if (!document.getElementById(‘ecap-async-js’)) { Sentry.captureMessage(“MMCTA Plugin Failure: ecap.js not enqueued”); } }; Click here to learn more .tmfsa-text-widget .ecap-widget { padding: 0 !important; border-left: 0 !important; } The post Domino’s Pizza Stock Soars on Q2 Earnings and Buyback Program appeared first on Millennial Money. [ad_2] Source link