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Daily Market Report | February 17, 2022

US FINANCIAL MARKET

Stocks, Oil Fall as Russia Said to Continue Its Troop Buildup – Wall Street Journal, 2/17/2022

  • Intensifying geopolitical tensions weighed on stocks and bond yields Thursday, chipping away at major indexes’ gains for the week.
  • The S&P 500 fell 1.4%, while the Dow Jones Industrial Average slipped 1.3%.
  • The tech-focused Nasdaq Composite Index dropped 1.6%.
  • The losses were broad-based, with 10 out of 11 of the S&P 500’s groups declining.
  • The Dow and S&P are on track to notch weekly losses, while the Nasdaq is headed for a slim gain.
  • On Thursday, fresh data showed that weekly U.S. jobless claims, a proxy for layoffs, came in at 248,000, up from the previous week. Economists had expected claims to continue edging down, given the tight labor market.
  • Global oil benchmark Brent crude fell 2.5% Thursday, after rising early on, as traders monitored the Russia-Ukraine situation.
  • The yield on the benchmark U.S. 10-year Treasury note edged down to 1.968% in recent trading from 2.044% Wednesday.
  • Gold prices rose around 1.4%.
  • The Russian ruble weakened around 1% against the dollar. The currency has seesawed in recent days as investors tried to gauge the severity of the tensions.
  • In corporate news, DoorDash surged 13% after the food-delivery company reported a jump in revenue.
  • Palantir Technologies tumbled 12% after posting a wider loss.
  • Walmart rose 2.3% after it reported profit that beat estimates and increased its dividend.
  • Cisco Systems rose 3.5% after reporting revenue and earnings above Wall Street’s expectations, plus an increase to its stock-buyback program.
  • Nvidia declined 7.3% despite reporting record sales, making it one of the worst performers in the S&P 500. It said its automotive segment saw a sharp drop in revenue due to supply-chain issues.
  • Overseas, the pan-continental Stoxx Europe 600 fell 0.9%.
  • Asian benchmarks were mixed. The Shanghai Composite Index was little changed, while Hong Kong’s Hang Seng Index rose 0.3%. Japan’s Nikkei 225 declined 0.8%.

Nvidia Posts Record Sales Amid Broad Chip Demand – Wall Street Journal, 2/17/2022

  • Nvidia posted record quarterly sales across its business and projected a further increase in the current period as it moves on from its failed takeover bid for semiconductor-design specialist Arm.
  • The graphics-chip maker on Wednesday said it generated $7.64 billion in sales in the most recent quarter, up 53% from the year-ago period.
  • It reported $3 billion in net income, more than double the prior year’s figure, and beat Wall Street expectations both on profit and sales.
  • Revenue in the quarter advanced 37% from the year-ago period for Nvidia’s critical gaming business and increased 71% for its data-centers activities.
  • Car revenue, though, retreated 14% from the year-ago period with supply-chain constraints continuing to weigh on car production and auto makers phasing out some older equipment that uses Nvidia chips.
  • Revenue from its cryptocurrency chip was $24 million in the quarter, up from almost nothing in the year-ago period but down sharply from the $105 million the device generated in the prior quarter.
  • Santa Clara, Calif.-based Nvidia, the U.S.’s largest chip company by market value, said it expects revenue for the current quarter to be roughly $8.1 billion, ahead of estimates from analysts surveyed by FactSet. Data-center and videogaming sales are expected to be principal drivers of the increase, Nvidia financial chief Colette Kress said on a call with analysts.

Applied Materials posts record revenue on strong demand – Reuters, 2/17/2022

  • Applied Materials posted record quarterly revenue on Wednesday on robust demand for its semiconductor-making equipment from chipmakers, but a weak forecast for the current quarter suggested that supply chain woes will hurt its business.
  • Applied Materials reported first-quarter revenue of $6.27 billion, above analysts’ estimates of $6.16 billion, according to Refinitiv IBES data.
  • Net income rose to $1.79 billion, or $2 per share, during the quarter ended Jan. 30, from $1.13 billion, or $1.22 per share, a year ago.
  • The company forecast revenue between $6.05 billion and $6.65 billion for the second quarter, the midpoint of which was below analysts’ average estimate of $6.38 billion.
  • “While the supply environment remains challenging, Applied Materials is doing everything we can to deliver for our customers and we recorded our highest-ever quarterly revenues,” said CEO Gary Dickerson.

Walmart Withstands Pandemic Blows, Higher Costs to Boost Business – Wall Street Journal, 2/17/2022

  • For Walmart, being the country’s largest retailer by revenue has helped it navigate higher supply-chain and wage costs, labor shortages and rising prices.
  • Overall revenue rose less than 1% from a year ago to $152.9 billion, in part due to the sale of some international units.
  • Global e-commerce sales were $73.2 billion in the most recent fiscal year, nearly double 2020 levels but slightly below its forecast of $75 billion.
  • Comparable U.S. sales, those from stores and digital channels operating for at least 12 months excluding fuel sales, rose 5.6% in the quarter ended Jan. 28, compared with the same period a year earlier.
  • Transaction volume rose 3.1% in the quarter.
  • The retailer, based in Bentonville, Ark., said it faced cost increases during the most recent quarter, but kept profits growing. Supply-chain costs were over $400 million higher than expected at the start of the quarter, the company said.
  • Wage costs increased too. Covid-19-specific paid-leave costs were more than $400 million due to the Omicron variant, $300 million more than expected, the company said.
  • The company swung to a profit of $3.56 billion, or $1.28 a share. Excluding special items, Walmart posted per-share earnings of $1.53, ahead of the $1.50 forecast by analysts polled by FactSet.
  • “During periods of inflation like this, middle-income families, lower-middle-income families, even wealthier families become more price-sensitive and that’s to our advantage,” said Walmart Chief Executive Doug McMillon on a call with analysts Thursday.

Cisco raises annual earnings forecast, announces $15 bln in share buybacks – Reuters, 2/17/2022

  • Cisco Systems on Wednesday raised its full-year earnings forecast, expecting to benefit from higher prices driven by global chip shortages and an eventual decline in logistics costs as shipment delays abate.
  • Shares of the company rose about 5% in extended trading after the networking firm announced a $15 billion increase to its stock repurchase program and reported better-than-expected quarterly results.
  • Second-quarter revenue rose about 6% to $12.72 billion, above estimates of $12.65 billion, according to IBES data Refinitiv.
  • On an adjusted basis, Cisco earned 84 cents per share, 3 cents above estimates.
  • Cisco forecast fiscal 2022 adjusted earnings between $3.41 and $3.46 per share, compared with prior projection of $3.38-$3.45. Revenue is expected to grow between 5.5% and 6.5% versus prior forecast of 5% to 7%.
  • The company, however, warned that pandemic-induced supply challenges, which have added to costs, would persist in the second half of its fiscal year.

Palantir shares drop more than 13% after earnings – CNBC, 2/17/2022

  • Shares of Palantir fell more than 13% after the company reported mixed earnings results for the fourth quarter.
  • Revenue of $433 million vs $418 million estimated, according to Refinitiv.
  • Palantir expanded its commercial business throughout 2021, growing commercial revenue 34% year-over-year to $645 million. U.S. commercial revenue alone grew 102% year-over-year while increasing U.S. commercial customer count 4.7x to 80 customers.
  • Government revenue grew 47% to $897 million in 2021.
  • The software company, known for its work with government agencies, said it grew government revenue 26% year-over-year and added 34 net new customers in Q4.
  • It reported a net loss of $156.19 million in the quarter, greater than the $148.34 million net loss it saw in Q4 2020.
  • Palantir said it expects $443 million in revenue in Q1, while analysts had been expecting about $439 million, according to Refinitiv. It continues to expect annual revenue growth of 30% or more through 2025.

Global-E Shares 25% Higher After 4Q Rev Beat, Guidance – MarketWatch, 2/17/2022

  • Global-E Online shares rose 25% to $46.25 after the cross-border e-commerce enablement company’s quarterly results and guidance exceeded analyst expectations.
  • Global-E Online after the bell Wednesday reported fourth quarter revenue rose 54% to $82.7 million, beating the FactSet consensus for $77.6 million.
  • Per-share loss was 15 cents, compared to the FactSet consensus for a loss of 16 cents.
  • The company guided for first quarter revenue of $74.5 million to $76.5 million and 2022 revenue of $411 million to $421 million.
  • FactSet consensus had been for first quarter revenue of $64 million and fiscal year revenue of $367 million.

Fastly stock plunges after forecast calls for bigger 2022 growth slowdown than expected – MarketWatch, 2/17/2022

  • Fastly shares plunged 27% in after-hours trading Wednesday, after the cloud-software company predicted 2022 revenue growth would slow down more than analysts expected.
  • Fastly, a software company that helps post content online, reported a fourth-quarter loss $57.5 million, or 49 cents a share, on sales of $97.7 million, up from $82.6 million a year ago.
  • Analysts on average expected an adjusted loss of 16 cents a share on sales of $92.5 million, after executives forecast a loss of 16 cents to 19 cents a share on sales of $90 million to $93 million.
  • Fastly predicted full-year adjusted losses of 50 cents to 60 cents a share in 2022, along with revenue of $400 million to $410 million.
  • Analysts on average were predicting adjusted losses of 49 cents a share on sales of $417.2 million, according to FactSet.
  • At the midpoint of the 2022 guidance range, Fastly sales would grow 14.3%, after growing 21.8% in 2021 to $354.3 million.

DoorDash’s 2021 Revenue Tops Pandemic Record – Wall Street Journal, 2/17/2022

  • DoorDash revenue and order volume last year topped 2020, showing food-delivery’s resilience as restaurants reopened across the U.S.
  • Revenue for the three months through December stood at $1.3 billion, up 34% from the same quarter in 2020.
  • DoorDash’s loss widened to $468 million last year from $461 million in 2020. But it trimmed its fourth-quarter loss to $155 million from $312 million in the corresponding 2020 quarter, when its bottom line was saddled by costs tied to its initial public offering.
  • The continued strength of food-delivery and its expansion into new segments led DoorDash to forecast the total value of orders on its platform to grow to as much as $50 billion in 2022 from about $42 billion in 2021.
  • The estimate is in line with the consensus for 2022 from analysts surveyed by FactSet.
  • DoorDash said it expects full-year adjusted EBITDA of as much as $500 million in 2022 compared with analysts’ average estimates of $455 million. It projected adjusted EBITDA of as much as $50 million in the three months through March compared with analysts’ forecast of $105 million.

AutoNation results top estimates on strong demand for used cars – Reuters, 2/17/2022

  • No. 1 U.S. auto retailer AutoNation beat Wall Street estimates for fourth-quarter profit and revenue on Thursday on robust demand for used vehicles boosted by consumer preference for personal transportation due to the COVID-19 pandemic.
  • AutoNation’s revenue rose 13.8% to $6.58 billion. Estimates came in at $6.37 billion.
  • The Fort Lauderdale-based company said revenue from the sale of used vehicles rose 55% from a year earlier.
  • However, retail unit sales of new vehicles fell 20% in the quarter ended Dec. 31.
  • The company said retail gross profit per used vehicle was $2,063 in the quarter, up 32% from the year-ago quarter, while retail gross profit per new vehicle was $6,450, up 132% from last year.
  • Net income rose to $387.1 million, or $5.87 per share, in the quarter, from $151.5 million, or $1.73 share, last year.
  • AutoNation is now acquiring 90% of the used vehicles it sells through trade-ins or by buying vehicles from consumers, allowing the chain to largely bypass the price volatility of auto auctions, Mike Manley, who took over as AutoNation’s chief executive officer on Nov. 1, said.

Amazon, Visa Resolve Monthslong Credit-Card Dispute – Wall Street Journal, 2/17/2022

  • Amazon.com and Visa reached an agreement allowing customers to use Visa credit cards across the online retailer’s websites and shops, the companies said, resolving a monthslong dispute.
  • Amazon in November told customers it would stop accepting Visa credit cards issued in the U.K. starting in January because of the card network’s high fees. Last month, Amazon said it would allow customers to keep using their cards past that date while it negotiated an agreement with Visa.
  • A Visa spokesman on Thursday said the company “was pleased to have reached a broad, global agreement with Amazon.” He said Visa would be accepted at all Amazon stores and sites, and that the two companies would work together on product and technology initiatives related to payments.
  • As part of the agreement, Amazon will also drop surcharges it had imposed on Visa credit-card purchases in Singapore and Australia.

US ECONOMY & POLITICS

U.S. Amps Up Ukraine Warnings as Russia Says No Invasion Planned – Bloomberg, 2/17/2022

  • The U.S. ramped up warnings of a possible Russian attack on Ukraine, with President Joe Biden saying a “false-flag” event may be underway and a top diplomat describing Moscow as moving toward an “imminent invasion.”
  • Russian officials said no invasion of Ukraine was underway and none was planned. But the Kremlin said in an official response to the Biden administration’s proposed security assurances that the offers were unsatisfactory and Russia might have to resort to unspecified “military-technical measures.”
  • Secretary of State Antony Blinken changed his travel plans Thursday to address the UN Security Council on the crisis. Russia expelled the U.S. deputy chief of mission in Moscow, Bart Gorman, in what a State Department spokesman called an unprovoked move.
  • As he departed the White House for a speech in Cleveland, Biden told reporters that the probability of a Ukraine invasion is “very high” and that he expected an attack in the next several days.

U.S., Russian Aircraft Flew Perilously Close to Each Other Amid Ukraine Tensions – Wall Street Journal, 2/17/2022

  • U.S. and Russian military aircraft flew dangerously close to each other in three separate weekend incidents over the Mediterranean Sea, including one in which the planes passed within 5 feet, Pentagon officials said Wednesday.
  • The incidents, which occurred in international airspace Friday and Saturday, involved Russian Su-35 jet fighters crossing into the flight paths of U.S. Navy P-8A surveillance aircraft, the officials said.
  • The Pentagon declined to specify where over the Mediterranean last weekend’s midair encounters occurred.
  • It assessed two of the encounters as unsafe and the third as unprofessional, the officials said.

Fed Eyeing Potential for Faster Rate Increases to Ease Inflation – Wall Street Journal, 2/17/2022

  • Federal Reserve officials at their meeting last month discussed an accelerated timetable for raising interest rates, beginning with an anticipated increase in March amid greater discomfort with high inflation.
  • They agreed that “if inflation does not move down as they expect, it would be appropriate for the committee to remove policy accommodation at a faster pace than they currently anticipate,” said the minutes of the Jan. 25-26 meeting, which were released Wednesday.
  • The discussion indicated officials were prepared to raise interest rates at consecutive policy meetings, which occur roughly every six weeks, something they haven’t done since 2006. That could set up a series of rate increases in March, May and June.
  • The minutes also showed officials continued their deliberations over how aggressively to shrink their $9 trillion asset portfolio, but provided few new clues about how that might happen later this year. The move is another way for the Fed to tighten financial conditions to cool the economy.
  • The Fed’s staff last month projected that inflation, using the central bank’s preferred gauge, would slow to 2.6% this year, down from 5.8% in December, the minutes said.
  • The forecast projected inflation to decline further to 2% next year. At officials meeting in December, the staff had projected inflation to decline to 2.1% this year.

U.S. Housing Starts Drop 4.1% in First Decline in Four Months – Bloomberg, 2/17/2022

  • New U.S. home construction fell in January for the first time in four months, indicating pandemic-related labor absences and winter weather tempered recent progress on building activity.
  • Residential starts dropped 4.1% last month to a 1.64 million annualized rate, according to government data released Thursday.
  • Still, applications to build rose to an annualized 1.9 million units, the highest since 2006.
  • The median estimate in a Bloomberg survey of economists called for a 1.7 million pace of housing starts in January.
  • New construction fell sharply in the Midwest, probably a reflection of winter. Starts of single-family homes in the Northeast also plunged.
  • Single-family starts declined 5.6% in January to an annualized pace of 1.12 million units as multifamily starts — which tend to be volatile and include apartment buildings and condominiums — decreased to 522,000.
  • The number of one-family homes authorized for construction but not yet started climbed 5.6% to 151,000 in January, one of the highest levels in 15 years.

U.S. Jobless Claims Edge Up but Remain Low in Tight Labor Market – Wall Street Journal, 2/17/2022

  • Jobless claims rose last week but remained historically low, indicating the labor market is on strong footing as Covid-19 cases of the Omicron variant decline.
  • Initial jobless claims, a proxy for layoffs, increased to a seasonally adjusted 248,000 last week from 225,000 a week earlier, the Labor Department said Thursday. The four-week moving average, which smooths volatility, fell slightly to 243,250.
  • Continuing claims, a proxy for the total number of people receiving unemployment benefits through regular state programs, declined to 1.59 million for the week ended Feb. 5 from 1.62 million a week earlier.

Small Businesses Still Face $28 Billion of Unforgiven PPP Loans – Bloomberg, 2/17/2022

  • Almost 350,000 loans made to small businesses in 2020 during the Covid-19 pandemic haven’t been forgiven, according to a Bloomberg News analysis of Paycheck Protection Program data, and most of them are for less than $25,000.
  • That lingering debt — about $28 billion, the analysis shows — is creating a burden for the smallest businesses, including many run by minority entrepreneurs, say advocacy groups, community leaders and business owners.
  • Advocates led by the Center for Responsible Lending, on Thursday asked the SBA, the U.S. Treasury and Congress to take steps to help small business owners with outstanding PPP loans, including by automatically forgiving those of $25,000 and less.
  • While the vast majority of the 5.14 million PPP loans approved in 2020 have been forgiven — and many borrowers had a smooth process — as of early January, there were 349,372 unforgiven loans and another 380,000 that were partially forgiven.

Fed’s Bullard repeats call for 1 percentage point in rate increases by July 1 – Reuters, 2/17/2022

  • The U.S. Federal Reserve should implement a full percentage point of rate increases over its next three meetings between now and July 1, St. Louis Fed president James Bullard said on Thursday, reiterating his calls for strong action from the Fed against stubbornly high inflation.
  • “We are missing our inflation target on our preferred measure… and policy is still at rock bottom lows and we’ve still got asset purchases going on,” Bullard said in a television interview with CNN. “This is a moment where we need to shift to less accommodation.”
  • Bullard’s initial comments one week ago in favor of a half percentage point move at the central bank’s next meeting on March 15-16 prompted traders in contracts tied to the Fed’s target interest rate to temporarily raise their expectations of a half-point increase next month.
  • That probability has now dropped back below 50% following comments by several other Fed policymakers pushing back against such a move.

EUROPE & WORLD

Russia Accuses Ukrainian Military of ‘Crimes’ in Report to U.N. – Wall Street Journal, 2/17/2022

  • Russia has filed a report with the United Nations alleging that Ukraine’s military has committed “crimes” against residents of the eastern Donbas region, according to documents viewed by The Wall Street Journal.
  • The Russian documents viewed by the Journal allege the “genocide of the Russian-speaking population of Donbas.” The country’s U.N. ambassador is expected to criticize Ukraine and Western nations on Thursday over the plight of Russian speakers in eastern Ukraine, the documents show.
  • In response, Secretary of State Antony Blinken is planning to make a rare appearance at the U.N. Security Council, part of a growing effort by Washington to counteract what it sees as Russian disinformation that could serve as a pretext for renewed war in Ukraine.
  • Pro-Russian separatists and Ukrainian authorities earlier Thursday traded allegations of cease-fire violations along the tense front line separating the two sides. Representatives of two breakaway Russian-backed and Russian-armed statelets in Ukraine’s eastern Donbas region, known as the Luhansk People’s Republic and the Donetsk People’s Republic, said Ukraine’s armed forces had launched grenades and mortars into their territory.

Hong Kong Considers Citywide Testing as Omicron Overwhelms Defenses – Wall Street Journal, 2/17/2022

  • Officials are considering citywide coronavirus testing in Hong Kong, adopting a strategy used in mainland China after Beijing demanded more be done to control an Omicron surge that has quickly overrun the city’s health system.
  • Under the plan, all 7.4 million residents would be tested from early March with Chinese authorities sending health experts and medical workers to help carry out the mammoth task, people familiar with the matter said.
  • While such plans have been successful in containing outbreaks on the mainland, local health experts said Hong Kong faced several obstacles, including a spiraling number of infections. They questioned how effective it would be without a simultaneous lockdown to slow the virus’s spread.
  • A day after Chinese leader Xi Jinping called on the city to bring the outbreak to heel, mainland authorities have begun stepping up plans to send help to the city.
  • Hong Kong has quickly become the center of the worst outbreak in Chinese territory since the coronavirus emerged in Wuhan more than two years ago, presenting a major test for the country’s so-called dynamic clearing policy, which aims to eliminate clusters whenever they appear.

Indian Tax Authorities Raid China’s Huawei, Triggering Protest From Beijing – Wall Street Journal, 2/17/2022

  • Indian authorities have raided the offices of Chinese tech giant Huawei Technologies over suspected tax evasion, triggering a protest from Beijing, in the latest sign that border tensions between the two countries are spilling into commercial ties.
  • Searches are being conducted at the company’s premises in the city of Gurgaon, just outside the capital, New Delhi, and in the southern tech hub of Bangalore, an Indian tax official told The Wall Street Journal on Thursday.
  • Gao Feng, a spokesman for China’s commerce ministry, told a news conference in Beijing on Thursday that Indian authorities had taken a series of measures against Chinese enterprises and products in India that he said had gravely damaged the rights and interests of China businesses.
  • “China is seriously concerned about this,” said Mr. Gao, according to a transcript of the news conference provided by the ministry.

European Union car sales in January lowest on record -ACEA – Reuters, 2/17/2022

  • New car registrations in the European Union reached a historic low of 682,596 units in January as semiconductor shortages continued to hurt car sales across the region, data from the region’s carmaker association (ACEA) showed on Thursday.
  • The number of new vehicles registered in the European Union, Britain and the European Free Trade Association (EFTA) was down 2.4% in January year-on-year, marking the seventh consecutive month of declines, ACEA’s data showed.
  • Car registrations varied strongly between individual countries with increases of 72.6% in Slovakia and 55.5% in Romania, compared to contractions in nearly all Western European countries, the association said in a statement.

Airbus’s Plan to Ramp Up Production of Bestselling Jet Hits Snags – Wall Street Journal, 2/17/2022

  • Airbus tempered expectations for sharply boosting production of its bestselling jet, blaming supply-line challenges that threaten its ambition to rapidly widen a market-share advantage it opened with Boeing during the pandemic.
  • The plane maker reported record profit Thursday and said it would reinstate its dividend, benefiting from still-robust demand for its commercial airliners. But it dialed back the likelihood of dramatically boosting future production rates for its A320, the single-aisle rival to Boeing’s 737 MAX.
  • On Thursday, Airbus said that demand remained promising, but that retooling its supply chain after the pandemic slowdown, labor shortfalls and a surge in raw-material and energy prices was proving challenging.
  • The company said it was working with suppliers to “potentially enable an increase” over its previously stated goal of 65 a month from the middle of next year.
  • Airbus Chief Executive Guillaume Faury said Airbus was still considering the possibility of producing 70 or 75 A320s a month.
  • Airbus reported 4.2 billion euros, equivalent to around $4.8 billion, in net income for the year, compared with a loss of 1.13 billion euros the year before. It said it would reinstate its dividend, proposed at 1.50 euros a share.
  • Last year, Airbus delivered 611 commercial aircraft, compared with around 280 passenger-jet deliveries by Boeing.
  • Airbus has said it expects 720 deliveries in 2022.

Work-From-Home Coffee Breaks Boost Nestle – Wall Street Journal, 2/17/2022

  • Consumers are drinking more coffee at home, even as the pandemic ebbs, buoying sales for the owner of Nescafe instant coffee, Coffee-Mate creamer and Nespresso pods.
  • Total sales rose 3.3% to 87.09 billion Swiss francs, equivalent to around $94.46 billion, and net profit rose 38% to 16.91 billion Swiss francs, boosted in part by Nestlé sale of some of its stake in French beauty giant L’Oréal SA .
  • Overall organic sales growth came in at 7.5% for the year, made up largely of higher volumes with some price increases, with pet food and health products also top performers.
  • Nestlé said strong demand for its Starbucks-branded products, as well as a recovery in its out-of-home offerings as restaurants and cafes reopened, drove a 9.7% rise in full-year coffee sales on an organic basis, which strips out deal making and currency moves.
  • The company forecast a margin of between 17% and 17.5% for 2022.

Canadian Tire beats estimates as holiday season drives sales – Reuters, 2/17/2022

  • Retailer Canadian Tire beat Wall Street estimates for quarterly profit and revenue on Thursday, as consumers splurged on sporting goods, garden equipment and home decor during the holiday season.
  • Canadian Tire’s retail segment revenue rose 5.4% to C$4.83 billion and total revenue rose 5.4% to C$5.14 billion ($4.05 billion) in the fourth quarter ended Jan. 1, beating analysts’ average estimate of C$4.76 billion, according to IBES data from Refinitiv.
  • Net income attributable to shareholders rose to C$508.5 million, or C$8.34 per share, from C$488.8 million, or C$7.97 per share. Excluding items, Canadian Tire earned C$8.42 per share, beating estimates of C$6.70 cents per share.
  • The Toronto, Ontario-based company said easing restrictions on in-store shopping also led to higher sales. The retailer, however, said its e-commerce sales suffered as a result.

Israel’s Tower Semiconductor profit jumps amid pending sale to Intel – Reuters, 2/17/2022

  • Tower Semiconductor on Thursday reported a higher than expected rise in quarterly profit, days after Intel Corp said it planned to buy the Israeli chipmaker.
  • The company, previously called TowerJazz, earned diluted earnings per share of 55 cents excluding one-time items in the fourth quarter, up from 34 cents a year earlier. Revenue rose 19% to $412 million, with organic growth up 28%.
  • Tower was forecast to earn EPS of 46 cents on revenue of $425 million, according to I/B/E/S data from Refinitiv.
  • For all of 2021, Tower earned an adjusted $1.37 per diluted share, versus 76 cents in 2020. Revenue gained 19% to $1.51 billion. Analysts had forecast EPS ex-one offs of $1.53 on revenue of $1.51 billion.
  • Tower , which specialises in analogue chips used in cars, medical sensors and power management, has said it would invest in equipment at its manufacturing sites in Israel, Texas and Japan to boost capacity for 200 and 300 millimetre chips.

Factmonster – TODAY in HISTORY

  • The electoral tie between Thomas Jefferson and Aaron Burr was broken by the House of Representatives who elected Jefferson president. (1801)
  • The Confederate submarine Hunley, equipped with an explosive at the end of a protruding spar, rammed and sank the Union’s ship Housatonic off the coast of Charleston, S.C. (1864)
  • President Richard Nixon left on his trip to China. (1972)
  • Chess champion Garry Kasparov beat the IBM computer, Deep Blue, winning the six-game match. (1996)

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