All posts by brianbaker2018

Shares of Hanesbrands Fall After Outlook Disappoints Investors

By Brian Baker
Medill Reports

Shares of Hanesbrands Inc. fell nearly 11 percent Thursday after the company reported disappointing fourth quarter operating results and its 2018 guidance fell short of analyst estimates.

The Winston-Salem, N.C.-based company reported a $384.6 million loss for the quarter ended Dec. 30 or $1.06 per diluted share, compared with net income of $157.1 million or 41 cents per share in the same quarter a year ago.

Adjusted diluted earnings per share, which excluded a $457 million charge related to U.S. tax reform and other items, were 52 cents during the quarter, compared with 53 cents in the same quarter last year. Adjusted earnings per share matched the consensus estimate.

Sales during the quarter increased 4 percent to $1.65 billion from $1.58 billion driven by a 15 percent increase at the company’s Champion brand.

Hanesbrands revenue has steadily increased over the past five years.
(Brian Baker/MEDILL)

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Tax Reform Boosts AutoNation Results

By Brian Baker
Medill Reports

AutoNation Inc. reported quarterly results that beat analyst estimates due to strong profit growth on used vehicles, benefits from recent U.S. tax reform and business divestitures.

Nevertheless, the stock dropped nearly 4 percent.

The Fort Lauderdale, Fla.-based auto retail chain reported net income of $151.3 million or $1.64 per share for the quarter ended Dec. 31, compared with $115.3 million or $1.14 per share in the same quarter a year ago.

Excluding a 45 cent per share benefit related to U.S. tax reform and a 17 cent per share boost from business divestitures, the company earned $1.02 per share compared with the consensus estimate of 92 cents per share.

Revenues increased 4 percent to $5.68 billion from $5.48 billion in the same quarter in 2016.

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Caterpillar Reports Strong 4th Quarter Results

By Brian Baker
Medill Reports

Caterpillar Inc. reported strong quarterly earnings driven by improving end markets, particularly in North America, where demand for construction equipment and onshore oil and gas equipment boosted results that outpaced analyst estimates.

The Deerfield, Ill.-based manufacturing giant reported adjusted earnings per share of $2.16 for the quarter ended Dec. 31 compared with 83 cents in the prior year’s quarter, beating estimates of $1.79 per share.

Adjusted earnings exclude a $2.4 billion tax charge related to repatriation of foreign earnings under the recent U.S. legislation, and other items including restructuring costs.

On a GAAP basis, the company reported a loss of $1.3 billion or $2.18 per share, compared with a loss of $1.2 billion or $2.00 per share in the fourth quarter of 2016.

Revenues increased 35 percent in the quarter to $12.9 billion versus $9.6 billion in last year’s quarter. North American sales grew 46 percent in the quarter due to strong demand for equipment and aftermarket parts.

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Chicago Community Catalyst Fund Still Waiting to Make First Investments

By Brian Baker
Medill Reports

More than a year after it was first announced, the Chicago Community Catalyst Fund has not yet hired investment managers who will be charged with finding investment opportunities–mainly loans to existing small businesses–in underserved Chicago neighborhoods.

Even then the rollout will be slow. The fund will deploy its first capital to investment managers over the next six months and funding should reach Chicago businesses in low-income neighborhoods by the end of the year, according to City Treasurer Kurt Summers.

The city expects to allocate $50 million to the fund this year and $25 million in each of the following two years. The money will be managed by professional investors who will have discretion over where investments are made.

“I don’t want a single politician to be responsible for these investment decisions,” Summers said Wednesday.

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