Saturday September 30, 2023
Airbnb Releases Earnings Report
Airbnb, Inc. (ABNB) released its fourth quarter and full-year earnings report on Tuesday, February 14. The online marketplace for short-term homestays reported better-than-expected revenue and profits which caused its stock to rise about 9% following the earnings release.
The company's revenue for the fourth quarter was $1.90 billion. This was up 24% from $1.53 billion during the same quarter last year and above analysts' forecast of $1.86 billion. For the full year, revenue came in at $8.40 billion, a 40% increase from $5.99 billion one year ago.
"We had our highest number of active bookers ever in Q4, demonstrating guests' excitement to travel on Airbnb despite evolving macroeconomic uncertainties," said Airbnb's CEO, Brian Chesky in a shareholder's call. "And this year, we are going to build the foundation for future products and services that will provide incremental growth for many years to come."
Airbnb reported net income of $319 million during the quarter or $0.48 per adjusted share. This was up from $55 million, or $0.08 per adjusted share last year. For the full year, the company's net income was $1.89 billion.
The San Francisco-based company serves as an online platform for vacation rentals and lodging. Airbnb's Nights and Experiences Booked category brought in 88.2 million bookings during the quarter, a 20% increase from the same quarter in 2021. Airbnb's gross bookings value was $13.5 billion, up 20% from last year at this time. Stays of 28 days or more made up 21% of bookings in the fourth quarter, remaining relatively flat from the same period a year earlier. For the full year, the company ended with 6.6 million active listings, up 16% from 2021. In the first quarter of fiscal 2023, the company expects revenue of $1.75 billion to $1.82 billion.
Airbnb, Inc. (ABNB) shares ended the week at $131.60, up 20% for the week.
Coca-Cola Serves Up Earnings
Coca-Cola Company (KO) released its fourth quarter and full-year earnings report on Tuesday, February 14. The soft drink company reported increased revenue and income for the quarter, but shares remained relatively steady following the release of the report.
Coca-Cola posted net revenue of $10.13 billion for the quarter. This is up 7% from $9.46 billion in revenue reported at the same time last year and above Wall Street's expectation of $10.02 billion. For the full year, revenue came in at $43 billion, an 11% increase from $38.66 billion last year.
"While 2022 brought many challenges, we are proud of our overall results in a dynamic operating environment," said Coca-Cola CEO, James Quincey. "As we begin 2023, we continue to invest in our capabilities and strengthen alignment with our bottling partners to maintain flexibility. We are keeping consumers at the center of our innovation and marketing investments, while also leveraging our expertise in revenue growth management and execution."
Coca-Cola reported net income of $2.03 billion or $0.47 per adjusted share for the quarter. This was down 16% from $2.41 billion, or $0.56 per adjusted share in the same quarter last year. For the full year, the company's net income was $9.54 billion.
The iconic Atlanta-based beverage company saw a slight decline of 1% in their unit case volume for the fourth quarter. While the company saw strong growth of unit case volume internationally, the overall growth was counteracted by the suspension of business in Russia. Performance in its sparkling soft drinks, Trademark Coca-Cola, water, sports, coffee and tea segments remained even for the quarter. The sparkling flavors segment declined by 2% and the juice, dairy and plant-based beverage segments also declined by 7%. The Coca-Cola Zero Sugar segment grew by 9% for the quarter. For fiscal 2023, the company expects to deliver organic revenue growth of 7% to 8%.
Coca-Cola Company (KO) shares closed at $60.12, relatively unchanged for the week.
Krispy Kreme Releases Report
Krispy Kreme, Inc. (DNUT) released its fourth quarter and full-year earnings report on Wednesday, February 15. The doughnut chain's stock rose slightly following reported revenue growth that exceeded analysts' expectations.
Net revenue came in at $404.6 million for the quarter. This was up 9% from $370.6 million in net revenue last year at this time and ahead of analysts' expectations of $394.5 million. For the full year, the company reported $1.5 billion in revenue, a more than 10% increase from $1.4 million in revenue last year.
"We are pleased with the strong end to 2022, with notable progress on expanding our omni-channel model, furthering our global growth strategy and executing successfully on the initial phase of our hub optimization efforts," said Krispy Kreme CEO, Mike Tattersfield. "Looking to 2023, we are well-positioned to deliver another year of terrific growth with a great start led by premium offerings for celebrations."
Krispy Kreme reported a quarterly net loss of $2.7 million or $0.02 per diluted share. This is a decline from net income of $1.4 million, or $0.01 per diluted share during the same quarter last year. For the full year, the company's net loss was $15.6 million.
The doughnut producer reported organic revenue growth in U.S. and Canada of close to 12%. Internationally, organic growth for the quarter increased by more than 11%. The company's Ecommerce sales totaled more than 18% of total sales in the quarter, an increase of more than 2.6% compared to the same time last year. During the fourth quarter, Krispy Kreme invested $36.7 million in capital expenditures to expand their Hub and Spoke model. For fiscal year 2023, the company expects revenue to be in the range of $1.65 billion to $1.68 billion.
Krispy Kreme, Inc. (DNUT) shares ended the week at $13.11, up 7% for the week.
The Dow started the week at 33,887 and closed at 33,827 on 2/17. The S&P 500 started the week at 4,097 and closed at 4,079. The NASDAQ started the week at 11,759 and closed at 11,787.
Treasury Yields Rise
Yields on U.S. Treasuries rose mid-week following the release of higher-than-expected monthly producer prices. Yields stabilized on Friday as unemployment numbers showed signs of a still tight labor market.
On Thursday, the Bureau of Labor Statistics released January's producer price index (PPI) which indicated a rise in inflation. The January PPI grew 0.7%, exceeding economists' estimates of a 0.4% growth. On an annualized basis, PPI grew 6% in January, down from growth of 6.5% in December.
"January's PPI report is a setback in the battle against inflation," said PNC's senior economist, Kurt Rankin. "PPI increases translate into CPI gains with a lag as producers pass their costs — both in terms of raw materials and in transportation of goods to market — on to consumers."
The benchmark 10-year Treasury note yield opened the week of February 13 at 3.74% and traded as high as 3.87% on Thursday. The 30-year Treasury bond opened the week at 3.82% and traded as high as 3.93% on Thursday.
On Thursday, the U.S. Department of Labor reported that initial claims for unemployment fell by 1,000 to 194,000 for the week ending February 11. Economists estimated 200,000 claims for the week. Continuing unemployment claims increased 16,000, reaching 1.69 million.
"Labor market conditions remain exceptionally tight," said lead economist at Oxford Economics in New York, Michael Pearce. "That is consistent with most other indicators which suggest that the labor market is still carrying plenty of momentum."
The 10-year Treasury note yield finished the week of 2/17 at 3.83%, while the 30-year Treasury note yield finished the week at 3.89%.
Mortgage Rates Jump Again
Freddie Mac released its latest Primary Mortgage Market Survey on Thursday, February 16. Mortgage rates continued to increase for the second week in a row prompting a decline in mortgage demand.
This week, the 30-year fixed rate mortgage averaged 6.32%, up from last week's average of 6.12%. Last year at this time, the 30-year fixed rate mortgage averaged 3.92%.
The 15-year fixed rate mortgage averaged 5.51% this week, up from 5.25% last week. During the same week last year, the 15-year fixed rate mortgage averaged 3.15%.
"Mortgage rates moved up for the second consecutive week," said Freddie Mac's Chief Economist, Sam Khater. "The economy is showing signs of resilience, mainly due to consumer spending, and rates are increasing. Overall housing costs are also increasing and therefore impacting inflation, which continues to persist."
Based on published national averages, the savings rate was 0.33% as of 1/17. The one-year CD averaged 1.28%.
Editor's Note: The publicly available financial information is offered as a helpful and informative service to our friends. This article is not an endorsement of any company, product or service.
Published February 17, 2023
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