Is Fidelity's 45% Rule the Right Retirement Strategy for You?
Financial services giant Fidelity has a rule for retirement savings you may have heard of: Have 10 times your annual salary saved for retirement by age 67. This oft-cited guideline can help you identify a retirement savings goal, but it doesn’t fully account for how much of those savings will cover in retirement.
Enter Fidelity’s 45% rule, which states that your retirement savings should generate about 45% of your pretax, pre-retirement income each year, with Social Security benefits covering the rest of your spending needs.
A financial advisor can analyze your income needs and help you plan for retirement. Find an advisor today.
The financial services firm analyzed spending data for working people between 50 and 65 years old and found that most retirees need to replace between 55% and 80% of their pre-retirement income in order to preserve their current lifestyle. Because retirees have lower day-to-day expenses and don’t typically contribute to retirement accounts, their income requirements are lower than people who are still working.
As a result, a retiree who was earning $100,000 a year would need between $55,000 and $80,000 per year in Social Security benefits and savings withdrawals (including pension benefits) to continue their current lifestyle.
Fidelity’s 45% guideline dictates that a retiree’s nest egg should be large enough to replace 45% of their pre-retirement, pretax income each year. Following this rule, the same retiree who was earning $100,000 per year would need enough saved up to spend $45,000 a year, in addition to his Social Security benefits, to fund his lifestyle. Assuming the person lives another 25 years after reaching retirement age, this person would need $1.125 million in savings.
A financial advisor can help you make projections for your own retirement. Get matched with a financial advisor today.
Pre-Retirement Income Plays an Important Role
But all retirement spending plans aren’t equal. Those who earned less money during their careers will have less saved than high earners, and as a result, will need to replace a larger proportion of their pre-retirement income.
“Your salary plays a big role in determining what percentage of your income you will need to replace in retirement,” Fidelity wrote in its most recent Viewpoints. “People with higher incomes tend to spend a small portion of their income during their working years, and that means a lower income replacement goal in percentage terms to maintain their lifestyle in retirement.”
According to Fidelity, a person who makes $50,000 per year would need savings and Social Security to replace approximately 80% of his income in retirement. An individual earning $200,000, however, could get by in retirement by replacing just 60%.
Social Security plays a less significant role in the retirement plans of higher-earning workers. Consider the table below:
Replacing Income Using Fidelity’s 45% Rule Pre-Retirement Income Replacement Rate From Savings Replacement Rate From Social Security Total Replacement Rate $50,000 45% 35% 80% $100,000 45% 27% 72% $200,000 45% 16% 61% $300,000 44% 11% 55%
According to Fidelity, a retiree who made $50,000 per year would receive 35% of that income via Social Security. But a high-earning individual who made $300,000 per year would only see 11% of his income replaced by Social Security benefits. While higher-earning individuals don’t need to replace as much of their pre-retirement income, retirement savings plays a more important role for these types of retirees.
Consider matching with a financial advisor if you’re interested in personalized, professional financial advice.
Bottom Line
Fidelity’s 10x rule of thumb is a nifty guideline to follow as you save for retirement over the course of many decades. But when retirement arrives, Fidelity recommends that your savings should cover 45% of your income needs, with Social Security covering the rest. As a result, the average retiree will need to replace between 55% and 80% of his pre-retirement, pretax income to maintain his current lifestyle.
Tips for Retirement Planning
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A financial advisor can be an invaluable resource when it comes to planning for retirement. Whether it’s saving in tax-advantaged accounts or mapping out your income needs, an advisor can help you with your retirement planning needs.
Finding a qualified financial advisor doesn’t have to be hard. SmartAsset’s free tool matches you with up to three financial advisors who serve your area, and you can interview your advisor matches at no cost to decide which one is right for you. If you’re ready to find an advisor who can help you achieve your financial goals, get started now.
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While people can start collecting Social Security benefits at age 62, delaying collection will result in higher benefits. SmartAsset’s Social Security calculator can help you develop a collection plan that enables you to maximize your benefits and enjoy retirement.
-
Keep an emergency fund on hand in case you run into unexpected expenses. An emergency fund should be liquid — in an account that isn’t at risk of significant fluctuation like the stock market. The tradeoff is that the value of liquid cash can be eroded by inflation. But a high-interest account allows you to earn compound interest. Compare savings accounts from these banks.
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Are you a financial advisor looking to grow your business? SmartAsset AMP helps advisors connect with leads and offers marketing automation solutions so you can spend more time making conversions. Learn more about SmartAsset AMP.
Photo credit: ©iStock.com/AscentXmedia, ©iStock.com/Kameleon007, ©iStock.com/FatCamera
The post Should the 45% Rule Guide Your Retirement Strategy? appeared first on SmartAsset Blog.
Petco Health + Wellness Company, Inc. Reports Second Quarter 2024 Earnings Results
Q2 2024 Overview
- Net revenue of $1.52 billion decreased 0.5 percent year over year
- Comparable sales increased 0.3 percent year over year and increased 3.5 percent on a two-year basis
- GAAP net loss of $24.8 million, or $(0.09) per share, compared to GAAP net loss of $14.6 million, or $(0.05) per share in the prior year
- Adjusted EBITDA1 of $83.5 million compared to $112.6 million in the prior year
- Operating Cash Flow of $69.4 million compared to $96.6 million in the prior year
- Free Cash Flow 1 of $42.0 million compared to $44.6 million in the prior year
SAN DIEGO, Sept. 10, 2024 /PRNewswire/ — Petco Health and Wellness Company, Inc. WOOF, a complete partner in pet health and wellness, today announced its second quarter 2024 financial results.
In the second quarter of 2024, Petco delivered net revenue of $1.52 billion, down 0.5 percent versus prior year. On an as-reported basis, the company’s consumables business was up 1.5 percent versus prior year, and services and other business was up 3.1 percent versus prior year. Growth in the company’s consumables and services and other business was offset by the company’s supplies and companion animal business, down 4.7 percent versus prior year. GAAP net loss in the second quarter of 2024 was $24.8 million or $(0.09) per share, compared to GAAP net loss of $14.6 million or $(0.05) per share in the prior year. Adjusted Net Income1 was $(5.9) million or $(0.02) per share, compared to $16.3 million or $0.06 per share in the prior year. Adjusted EBITDA1 was $83.5 million compared to $112.6 million in the prior year.
“Our second quarter results demonstrate the ongoing work of our teams to strengthen our retail fundamentals and accelerate the path to improved profitability,” said Joel Anderson, Petco’s Chief Executive Officer. “I could not be more excited to lead Petco at this pivotal time. Looking ahead, I see tremendous opportunities for us to significantly improve our operating and financial performance and better leverage Petco’s strengths to capture greater share, deliver sustained profitability, and create value for shareholders.”
|
(1) |
Adjusted EBITDA, Adjusted Net Income, Adjusted Earnings Per Share (“Adjusted EPS”), and Free Cash Flow are non-GAAP financial measures. See “Non-GAAP Financial Measures” for additional information on non-GAAP financial measures and a reconciliation to the most comparable GAAP measures. |
Fiscal Q3 2024 Outlook
The company is providing Q3 guidance for revenue, Adjusted EBITDA, and Adjusted EPS, in addition to reaffirming full year interest expense and capital expenditure expectations.
For Fiscal Q3 2024, the company expects:
|
Metric* |
FQ3 2024 Guidance |
|
Net Revenue |
~ $1.5 billion |
|
Adjusted EBITDA |
$76 million to $80 million |
|
Adjusted EPS |
$(0.03) to $(0.04) |
For Fiscal 2024 (a 52-week year), the company expects the following, both of which are unchanged:
|
Metric* |
2024 Guidance, YoY |
|
Net interest expense |
~$145 million |
|
Capital Expenditures |
~$140 million |
*Assumptions in the guidance include that economic conditions, currency rates and the tax and regulatory landscape remain generally consistent. For fiscal 2024, our guidance anticipates a 26 percent tax rate, and 272 million weighted average diluted share count. Adjusted EBITDA and Adjusted EPS are non-GAAP financial measures and have not been reconciled to the most comparable GAAP outlook because it is not possible to do so without unreasonable efforts due to the uncertainty and potential variability of reconciling items, which are dependent on future events and often outside of management’s control and which could be significant. Because such items cannot be reasonably predicted with the level of precision required, we are unable to provide outlook for the comparable GAAP measures. Forward-looking estimates of Adjusted EBITDA and Adjusted EPS are made in a manner consistent with the relevant definitions and assumptions noted herein and in our filings with the Securities and Exchange Commission.
Earnings Conference Call Webcast Information:
Management will host an earnings conference call on September 10, 2024 at 5:00 PM Eastern Time to discuss the company’s financial results. The conference call will be accessible through a live webcast. Interested investors and other individuals can access the webcast, earnings release, and earnings presentation via the company’s investor relations page at ir.petco.com. A replay of the webcast will be archived on the company’s investor relations page through September 24, 2024 until approximately 5:00 PM Eastern Time.
About Petco, The Health + Wellness Co.:
Founded in 1965, Petco is a category-defining health and wellness company focused on improving the lives of pets, pet parents and our own Petco partners. We’ve consistently set new standards in pet care while delivering comprehensive pet wellness products, services and solutions, and creating communities that deepen the pet-pet parent bond. We operate more than 1,500 pet care centers across the U.S., Mexico and Puerto Rico, which offer merchandise, companion animals, grooming, training and a growing network of on-site veterinary hospitals and mobile veterinary clinics. Our complete pet health and wellness ecosystem is accessible through our pet care centers and digitally at petco.com and on the Petco app. In tandem with Petco Love, a life-changing independent nonprofit organization, we work with and support thousands of local animal welfare groups across the country and, through in-store adoption events, we’ve helped find homes for nearly 7 million animals.
Forward-Looking Statements:
This earnings release contains “forward-looking statements” within the meaning of the Private Securities Litigation Reform Act of 1995 as contained in Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended, concerning expectations, beliefs, plans, objectives, goals, strategies, future events or performance and underlying assumptions and other statements that are not statements of historical fact, including, but not limited to, statements regarding our Q3 and full year 2024 guidance, operational reset of our business, our competitive positioning, profitability, cost action plans and associated cost-savings. Such forward-looking statements can generally be identified by the use of forward-looking terms such as “believes,” “expects,” “may,” “intends,” “will,” “shall,” “should,” “anticipates,” “opportunity,” “illustrative,” or the negative thereof or other variations thereon or comparable terminology. Although Petco believes that the expectations and assumptions reflected in these statements are reasonable, there can be no assurance that these expectations will prove to be correct or that any forward-looking results will occur or be realized. Nothing contained in this earnings release is, or should be relied upon as, a promise or representation or warranty as to any future matter, including any matter in respect of the operations or business or financial condition of Petco. All forward-looking statements are based on current expectations and assumptions about future events that may or may not be correct or necessarily take place and that are by their nature subject to significant uncertainties and contingencies, many of which are outside the control of Petco. Forward-looking statements are subject to a number of risks, uncertainties and other factors that could cause actual results or events to differ materially from the potential results or events discussed in the forward-looking statements, including, without limitation, those identified in this earnings release as well as the following: (i) increased competition (including from multi-channel retailers, mass and grocery retailers, and e-Commerce providers); (ii) reduced consumer demand for our products and/or services; (iii) our reliance on key vendors; (iv) our ability to attract and retain qualified employees; (v) risks arising from statutory, regulatory and/or legal developments; (vi) macroeconomic pressures in the markets in which we operate, including inflation and prevailing interest rates; (vii) failure to effectively manage our costs; (viii) our reliance on our information technology systems; (ix) our ability to prevent or effectively respond to a data privacy or security breach; (x) our ability to effectively manage or integrate strategic ventures, alliances or acquisitions and realize the anticipated benefits of such transactions; (xi) economic or regulatory developments that might affect our ability to provide attractive promotional financing; (xii) business interruptions and other supply chain issues; (xiii) catastrophic events, political tensions, conflicts and wars (such as the ongoing conflicts in Ukraine and the Middle East), health crises, and pandemics; (xiv) our ability to maintain positive brand perception and recognition; (xv) product safety and quality concerns; (xvi) changes to labor or employment laws or regulations; (xvii) our ability to effectively manage our real estate portfolio; (xviii) constraints in the capital markets or our vendor credit terms; (xix) changes in our credit ratings; (xx) impairments of the carrying value of our goodwill and other intangible assets; (xxi) our ability to successfully implement our operational adjustments, achieve the expected benefits of our cost action plans and drive improved profitability; and (xxii) the other risks, uncertainties and other factors identified under “Risk Factors” and elsewhere in Petco’s Securities and Exchange Commission filings. The occurrence of any such factors could significantly alter the results set forth in these statements.
Petco cautions that the foregoing list of risks, uncertainties and other factors is not complete, and forward-looking statements speak only as of the date they are made. Petco undertakes no duty to update publicly any such forward-looking statement, whether as a result of new information, future events or otherwise, except as may be required by applicable law, regulation or other competent legal authority.
|
PETCO HEALTH AND WELLNESS COMPANY, INC. |
||||||
|
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS |
||||||
|
(In thousands, except per share amounts) |
||||||
|
(Unaudited and subject to reclassification) |
||||||
|
13 Weeks Ended |
||||||
|
August 3, |
July 29, |
Percent |
||||
|
Net sales: |
||||||
|
Products |
$ 1,263,749 |
$ 1,278,598 |
(1 %) |
|||
|
Services and other |
260,006 |
252,136 |
3 % |
|||
|
Total net sales |
1,523,755 |
1,530,734 |
(0 %) |
|||
|
Cost of sales: |
||||||
|
Products |
787,103 |
789,091 |
(0 %) |
|||
|
Services and other |
155,927 |
148,639 |
5 % |
|||
|
Total cost of sales |
943,030 |
937,730 |
1 % |
|||
|
Gross profit |
580,725 |
593,004 |
(2 %) |
|||
|
Selling, general and administrative expenses |
578,257 |
568,967 |
2 % |
|||
|
Operating income (loss) |
2,468 |
24,037 |
(90 %) |
|||
|
Interest income |
(672) |
(764) |
(12 %) |
|||
|
Interest expense |
36,805 |
37,493 |
(2 %) |
|||
|
Loss on partial extinguishment of debt |
— |
305 |
(100 %) |
|||
|
Other non-operating (income) loss |
— |
(1,795) |
(100 %) |
|||
|
Loss before income taxes and income from |
(33,665) |
(11,202) |
201 % |
|||
|
Income tax (benefit) expense |
(4,651) |
6,732 |
N/M |
|||
|
Income from equity method investees |
(4,191) |
(3,328) |
26 % |
|||
|
Net loss attributable to Class A and B-1 common |
$ (24,823) |
$ (14,606) |
70 % |
|||
|
Net loss per Class A and B-1 common share: |
||||||
|
Basic |
$ (0.09) |
$ (0.05) |
66 % |
|||
|
Diluted |
$ (0.09) |
$ (0.05) |
66 % |
|||
|
Weighted average shares used in computing net loss per Class A |
||||||
|
Basic |
273,074 |
267,163 |
2 % |
|||
|
Diluted |
273,074 |
267,163 |
2 % |
|||
|
PETCO HEALTH AND WELLNESS COMPANY, INC. |
||||
|
CONSOLIDATED BALANCE SHEETS |
||||
|
(In thousands, except per share amounts) |
||||
|
(Unaudited and subject to reclassification) |
||||
|
August 3, |
February 3, |
|||
|
ASSETS |
||||
|
Current assets: |
||||
|
Cash and cash equivalents |
$ 127,620 |
$ 125,428 |
||
|
Receivables, less allowance for credit losses1 |
47,035 |
44,369 |
||
|
Merchandise inventories, net |
672,328 |
684,502 |
||
|
Prepaid expenses |
59,758 |
58,615 |
||
|
Other current assets |
35,152 |
38,830 |
||
|
Total current assets |
941,893 |
951,744 |
||
|
Fixed assets |
2,206,885 |
2,173,015 |
||
|
Less accumulated depreciation |
(1,447,180) |
(1,356,648) |
||
|
Fixed assets, net |
759,705 |
816,367 |
||
|
Operating lease right-of-use assets |
1,368,740 |
1,384,050 |
||
|
Goodwill |
980,064 |
980,297 |
||
|
Trade name |
1,025,000 |
1,025,000 |
||
|
Other long-term assets |
201,245 |
205,694 |
||
|
Total assets |
$ 5,276,647 |
$ 5,363,152 |
||
|
LIABILITIES AND EQUITY |
||||
|
Current liabilities: |
||||
|
Accounts payable and book overdrafts |
$ 474,496 |
$ 485,131 |
||
|
Accrued salaries and employee benefits |
135,235 |
101,265 |
||
|
Accrued expenses and other liabilities |
196,518 |
200,278 |
||
|
Current portion of operating lease liabilities |
306,507 |
310,507 |
||
|
Current portion of long-term debt and other lease liabilities |
5,095 |
15,962 |
||
|
Total current liabilities |
1,117,851 |
1,113,143 |
||
|
Senior secured credit facilities, net, excluding current portion |
1,575,630 |
1,576,223 |
||
|
Operating lease liabilities, excluding current portion |
1,104,709 |
1,116,615 |
||
|
Deferred taxes, net |
219,574 |
251,629 |
||
|
Other long-term liabilities |
127,400 |
121,113 |
||
|
Total liabilities |
4,145,164 |
4,178,723 |
||
|
Commitments and contingencies |
||||
|
Stockholders’ equity: |
||||
|
Class A common stock2 |
236 |
231 |
||
|
Class B-1 common stock3 |
38 |
38 |
||
|
Class B-2 common stock4 |
— |
— |
||
|
Preferred stock5 |
— |
— |
||
|
Additional paid-in-capital |
2,260,381 |
2,229,582 |
||
|
Accumulated deficit |
(1,118,549) |
(1,047,243) |
||
|
Accumulated other comprehensive (loss) income |
(10,623) |
1,821 |
||
|
Total stockholders’ equity |
1,131,483 |
1,184,429 |
||
|
Total liabilities and stockholders’ equity |
$ 5,276,647 |
$ 5,363,152 |
||
|
(1) |
Allowances for credit losses are $1,859 and $1,806, respectively |
|
(2) |
Class A common stock, $0.001 par value: Authorized – 1.0 billion shares; Issued and outstanding – 235.8 million and 231.2 million shares, respectively |
|
(3) |
Class B-1 common stock, $0.001 par value: Authorized – 75.0 million shares; Issued and outstanding – 37.8 million shares |
|
(4) |
Class B-2 common stock, $0.000001 par value: Authorized – 75.0 million shares; Issued and outstanding – 37.8 million shares |
|
(5) |
Preferred stock, $0.001 par value: Authorized – 25.0 million shares; Issued and outstanding – none |
|
PETCO HEALTH AND WELLNESS COMPANY, INC. |
|||||
|
CONSOLIDATED STATEMENTS OF CASH FLOWS |
|||||
|
(In thousands) |
|||||
|
(Unaudited and subject to reclassification) |
|||||
|
26 Weeks Ended |
|||||
|
August 3, |
July 29, |
||||
|
Cash flows from operating activities: |
|||||
|
Net loss |
$ (71,306) |
$ (16,498) |
|||
|
Adjustments to reconcile net loss to net cash provided by |
|||||
|
Depreciation and amortization |
99,305 |
97,919 |
|||
|
Amortization of debt discounts and issuance costs |
2,435 |
2,446 |
|||
|
Provision for deferred taxes |
(27,782) |
(11,002) |
|||
|
Equity-based compensation |
29,348 |
46,248 |
|||
|
Impairments, write-offs and losses on sale of fixed and other assets |
7,069 |
1,035 |
|||
|
Loss on partial extinguishment of debt |
— |
746 |
|||
|
Income from equity method investees |
(9,077) |
(6,458) |
|||
|
Amounts reclassified out of accumulated other comprehensive (loss) income |
(2,274) |
1,055 |
|||
|
Non-cash operating lease costs |
207,605 |
211,576 |
|||
|
Other non-operating (income) loss |
2,665 |
(4,614) |
|||
|
Changes in assets and liabilities: |
|||||
|
Receivables |
(2,083) |
(16,679) |
|||
|
Merchandise inventories |
11,769 |
(23,011) |
|||
|
Prepaid expenses and other assets |
(7,166) |
(14,237) |
|||
|
Accounts payable and book overdrafts |
(9,644) |
97,062 |
|||
|
Accrued salaries and employee benefits |
34,591 |
1,221 |
|||
|
Accrued expenses and other liabilities |
3,015 |
(1,238) |
|||
|
Operating lease liabilities |
(209,738) |
(232,518) |
|||
|
Other long-term liabilities |
2,224 |
1,212 |
|||
|
Net cash provided by operating activities |
60,956 |
134,265 |
|||
|
Cash flows from investing activities: |
|||||
|
Cash paid for fixed assets |
(60,029) |
(114,023) |
|||
|
Cash paid for acquisitions, net of cash acquired |
(259) |
(2,040) |
|||
|
Proceeds from investment |
998 |
10,248 |
|||
|
Proceeds from sale of assets |
1,019 |
— |
|||
|
Cash received from partial surrender of officers’ life insurance |
206 |
— |
|||
|
Net cash used in investing activities |
(58,065) |
(105,815) |
|||
|
Cash flows from financing activities: |
|||||
|
Borrowings under long-term debt agreements |
201,000 |
— |
|||
|
Repayments of long-term debt |
(201,000) |
(60,000) |
|||
|
Debt refinancing costs |
(3,028) |
— |
|||
|
Payments for finance lease liabilities |
(3,528) |
(3,349) |
|||
|
Proceeds from employee stock purchase plan and stock option exercises |
1,630 |
2,454 |
|||
|
Tax withholdings on stock-based awards |
(3,468) |
(4,873) |
|||
|
Proceeds from issuance of common stock |
2,500 |
— |
|||
|
Net cash used in financing activities |
(5,894) |
(65,768) |
|||
|
Net decrease in cash, cash equivalents and restricted cash |
(3,003) |
(37,318) |
|||
|
Cash, cash equivalents and restricted cash at beginning of period |
136,649 |
213,727 |
|||
|
Cash, cash equivalents and restricted cash at end of period |
$ 133,646 |
$ 176,409 |
|||
NON-GAAP FINANCIAL MEASURES
The following information provides definitions and reconciliations of the non-GAAP financial measures presented in this earnings release to the most directly comparable financial measures calculated and presented in accordance with generally accepted accounting principles (GAAP). The company has provided this non-GAAP financial information, which is not calculated or presented in accordance with GAAP, as information supplemental and in addition to the financial measures presented in this earnings release that are calculated and presented in accordance with GAAP. Such non-GAAP financial measures should not be considered superior to, as a substitute for or alternative to, and should be considered in conjunction with, the GAAP financial measures presented in this earnings release. The non-GAAP financial measures in this earnings release may differ from similarly titled measures used by other companies.
The tables below reflect the calculation of Adjusted EBITDA, Adjusted Net Income, and Adjusted EPS, as applicable, for the thirteen weeks ended August 3, 2024 compared to the thirteen weeks ended July 29, 2023, respectively.
Adjusted EBITDA and Trailing Twelve Month Adjusted EBITDA
Adjusted EBITDA, including Trailing Twelve Month Adjusted EBITDA, is considered a non-GAAP financial measure under the Securities and Exchange Commission’s (SEC) rules because it excludes certain amounts included in net income calculated in accordance with GAAP. Management believes that Adjusted EBITDA is a meaningful measure to share with investors because it facilitates comparison of the current period performance with that of the comparable prior period. In addition, Adjusted EBITDA affords investors a view of what management considers to be Petco’s core operating performance as well as the ability to make a more informed assessment of such operating performance as compared with that of the prior period. Please see the company’s Annual Report on Form 10-K for the fiscal year ended February 3, 2024 filed with the SEC on April 3, 2024 for additional information on Adjusted EBITDA.
|
(dollars in thousands) |
13 Weeks Ended |
|||
|
Reconciliation of Net Loss Attributable to Class A and B-1 |
August 3, |
July 29, |
||
|
Net loss attributable to Class A and B-1 common stockholders |
$ (24,823) |
$ (14,606) |
||
|
Add (deduct): |
||||
|
Interest expense, net |
36,133 |
36,729 |
||
|
Income tax (benefit) expense |
(4,651) |
6,732 |
||
|
Depreciation and amortization |
49,718 |
48,664 |
||
|
Income from equity method investees |
(4,191) |
(3,328) |
||
|
Loss on partial extinguishment of debt |
— |
305 |
||
|
Goodwill impairment |
— |
— |
||
|
Asset impairments and write offs |
3,561 |
1,031 |
||
|
Equity-based compensation |
11,914 |
24,119 |
||
|
Other non-operating (income) loss |
— |
(1,795) |
||
|
Mexico joint venture EBITDA (1) |
9,902 |
8,544 |
||
|
Acquisition and divestiture-related costs (2) |
— |
— |
||
|
Other costs (3) |
5,960 |
6,183 |
||
|
Adjusted EBITDA |
$ 83,523 |
$ 112,578 |
||
|
Net sales |
$ 1,523,755 |
$ 1,530,734 |
||
|
Net margin (4) |
(1.6 %) |
(1.0 %) |
||
|
Adjusted EBITDA Margin |
5.5 % |
7.4 % |
||
|
(dollars in thousands) |
Trailing Twelve Months |
|||||
|
Reconciliation of Net (Loss) Income Attributable to Class A and B-1 |
August 3, |
February 3, |
July 29, |
|||
|
Net (loss) income attributable to Class A and B-1 common stockholders |
$ (1,335,018) |
$ (1,280,210) |
$ 36,154 |
|||
|
Add (deduct): |
||||||
|
Interest expense, net |
147,282 |
147,504 |
132,068 |
|||
|
Income tax (benefit) expense |
(42,465) |
(27,613) |
24,433 |
|||
|
Depreciation and amortization |
202,168 |
200,782 |
196,177 |
|||
|
Income from equity method investees |
(18,807) |
(16,188) |
(14,240) |
|||
|
Loss on partial extinguishment of debt |
174 |
920 |
746 |
|||
|
Goodwill impairment |
1,222,524 |
1,222,524 |
— |
|||
|
Asset impairments and write offs |
8,867 |
2,833 |
1,658 |
|||
|
Equity-based compensation |
64,959 |
81,859 |
81,915 |
|||
|
Other non-operating loss (income) |
2,552 |
(4,727) |
(1,892) |
|||
|
Mexico joint venture EBITDA (1) |
41,346 |
38,226 |
33,583 |
|||
|
Acquisition and divestiture-related costs (2) |
3,719 |
— |
2,219 |
|||
|
Other costs (3) |
39,365 |
35,193 |
8,860 |
|||
|
Adjusted EBITDA |
$ 336,666 |
$ 401,103 |
$ 501,681 |
|||
|
Net sales |
$ 6,221,537 |
$ 6,255,284 |
$ 6,165,821 |
|||
|
Net margin (4) |
(21.5 %) |
(20.5 %) |
0.6 % |
|||
|
Adjusted EBITDA Margin |
5.4 % |
6.4 % |
8.1 % |
|||
Adjusted Net Income and Adjusted EPS
Adjusted Net Income and Adjusted diluted Earnings Per Share attributable to Petco common stockholders (Adjusted EPS) are considered non-GAAP financial measures under the SEC’s rules because they exclude certain amounts included in the net income attributable to Petco common stockholders and diluted earnings per share attributable to Petco common stockholders calculated in accordance with GAAP. Management believes that Adjusted Net Income and Adjusted EPS are meaningful measures to share with investors because they facilitate comparison of the current period performance with that of the comparable prior period. In addition, Adjusted Net Income and Adjusted EPS afford investors a view of what management considers to be Petco’s core earnings performance as well as the ability to make a more informed assessment of such earnings performance with that of the prior period.
|
(in thousands, except per share amounts) |
13 Weeks Ended |
|||||||
|
Reconciliation of Diluted EPS to Adjusted EPS |
August 3, 2024 |
July 29, 2023 |
||||||
|
Amount |
Per share |
Amount |
Per share |
|||||
|
Net loss attributable to common stockholders / diluted EPS |
$ (24,823) |
$ (0.09) |
$ (14,606) |
$ (0.05) |
||||
|
Add (deduct): |
||||||||
|
Income tax (benefit) expense |
(4,651) |
(0.01) |
6,732 |
0.02 |
||||
|
Loss on partial extinguishment of debt |
— |
— |
305 |
0.00 |
||||
|
Goodwill impairment |
— |
— |
— |
— |
||||
|
Asset impairments and write offs |
3,561 |
0.01 |
1,031 |
0.01 |
||||
|
Equity-based compensation |
11,914 |
0.04 |
24,119 |
0.09 |
||||
|
Other non-operating income |
— |
— |
(1,795) |
(0.01) |
||||
|
Other costs (3) |
5,960 |
0.02 |
6,183 |
0.02 |
||||
|
Adjusted pre-tax (loss) income / diluted (loss) earnings per share |
$ (8,039) |
$ (0.03) |
$ 21,969 |
$ 0.08 |
||||
|
Income tax (benefit) expense at 26% normalized tax rate |
(2,090) |
(0.01) |
5,712 |
0.02 |
||||
|
Adjusted Net (Loss) Income / Adjusted EPS |
$ (5,949) |
$ (0.02) |
$ 16,257 |
$ 0.06 |
||||
Free Cash Flow
Free Cash Flow is a non-GAAP financial measure that is calculated as net cash provided by operating activities less cash paid for fixed assets. Management believes that Free Cash Flow, which measures the ability to generate additional cash from business operations, is an important financial measure for use in evaluating the company’s financial performance.
The table below reflects the calculation of Free Cash Flow for the thirteen and twenty-six weeks ended August 3, 2024 compared to the thirteen and twenty-six weeks ended July 29, 2023, respectively.
|
(in thousands) |
13 Weeks Ended |
26 Weeks Ended |
||||||
|
August 3, |
July 29, |
August 3, |
July 29, |
|||||
|
Net cash provided by operating activities |
$ 69,370 |
$ 96,614 |
$ 60,956 |
$ 134,265 |
||||
|
Cash paid for fixed assets |
(27,388) |
(51,973) |
(60,029) |
(114,023) |
||||
|
Free Cash Flow |
$ 41,982 |
$ 44,641 |
$ 927 |
$ 20,242 |
||||
Non-GAAP Financial Measures Footnotes
|
(1) |
Mexico Joint Venture EBITDA represents 50 percent of the entity’s operating results for all periods, as adjusted to reflect the results on a basis comparable to Adjusted EBITDA. In the financial statements, this joint venture is accounted for as an equity method investment and reported net of depreciation and income taxes because such a presentation would not reflect the adjustments made in the calculation of Adjusted EBITDA, we include the 50 percent interest in the company’s Mexico joint venture on an Adjusted EBITDA basis to ensure consistency. The table below presents a reconciliation of Mexico joint venture net income to Mexico joint venture EBITDA. |
|
13 Weeks Ended |
|||||
|
(in thousands) |
August 3, |
July 29, |
|||
|
Net income |
$ 8,822 |
$ 6,656 |
|||
|
Depreciation |
6,996 |
6,443 |
|||
|
Income tax expense |
3,903 |
2,364 |
|||
|
Foreign currency (gain) loss |
(380) |
395 |
|||
|
Interest expense, net |
463 |
1,230 |
|||
|
EBITDA |
$ 19,804 |
$ 17,088 |
|||
|
50% of EBITDA |
$ 9,902 |
$ 8,544 |
|||
|
(2) |
Acquisition and divestiture-related costs include direct costs resulting from acquiring, integrating, or divesting businesses. These include third-party professional and legal fees, losses on sales of divestitures, and other integration-related costs that would not have otherwise been incurred as part of the company’s operations. |
|
(3) |
Other costs include, as incurred: restructuring costs and restructuring-related severance costs; legal reserves associated with significant, non-ordinary course legal or regulatory matters; and costs related to certain significant strategic transactions. |
|
(4) |
We define net margin as net income attributable to Class A and B-1 common stockholders divided by net sales and Adjusted EBITDA margin as Adjusted EBITDA divided by net sales. |
View original content to download multimedia:https://www.prnewswire.com/news-releases/petco-health–wellness-company-inc-reports-second-quarter-2024-earnings-results-302244187.html
SOURCE Petco – Investor Relations
© 2024 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.
Behind the Scenes of IBM's Latest Options Trends
Financial giants have made a conspicuous bearish move on IBM. Our analysis of options history for IBM IBM revealed 28 unusual trades.
Delving into the details, we found 42% of traders were bullish, while 50% showed bearish tendencies. Out of all the trades we spotted, 18 were puts, with a value of $1,307,358, and 10 were calls, valued at $1,105,795.
Predicted Price Range
After evaluating the trading volumes and Open Interest, it’s evident that the major market movers are focusing on a price band between $170.0 and $270.0 for IBM, spanning the last three months.
Insights into Volume & Open Interest
Looking at the volume and open interest is a powerful move while trading options. This data can help you track the liquidity and interest for IBM’s options for a given strike price. Below, we can observe the evolution of the volume and open interest of calls and puts, respectively, for all of IBM’s whale trades within a strike price range from $170.0 to $270.0 in the last 30 days.
IBM Option Volume And Open Interest Over Last 30 Days
Noteworthy Options Activity:
| Symbol | PUT/CALL | Trade Type | Sentiment | Exp. Date | Ask | Bid | Price | Strike Price | Total Trade Price | Open Interest | Volume |
|---|---|---|---|---|---|---|---|---|---|---|---|
| IBM | CALL | SWEEP | BULLISH | 11/15/24 | $9.5 | $9.45 | $9.5 | $205.00 | $445.5K | 4.4K | 601 |
| IBM | CALL | TRADE | BEARISH | 06/20/25 | $2.14 | $1.93 | $2.01 | $270.00 | $301.4K | 1.8K | 1.5K |
| IBM | PUT | TRADE | BULLISH | 03/21/25 | $38.8 | $37.5 | $37.8 | $240.00 | $162.5K | 0 | 43 |
| IBM | PUT | SWEEP | BEARISH | 09/20/24 | $3.65 | $3.6 | $3.6 | $205.00 | $145.9K | 74 | 443 |
| IBM | CALL | TRADE | BULLISH | 11/15/24 | $8.8 | $8.7 | $8.8 | $205.00 | $117.0K | 4.4K | 786 |
About IBM
IBM looks to be a part of every aspect of an enterprise’s IT needs. The company primarily sells software, IT services, consulting, and hardware. IBM operates in 175 countries and employs approximately 350,000 people. The company has a robust roster of 80,000 business partners to service 5,200 clients, which includes 95% of all Fortune 500. While IBM is a B2B company, IBM’s outward impact is substantial. For example, IBM manages 90% of all credit card transactions globally and is responsible for 50% of all wireless connections in the world.
Present Market Standing of IBM
- With a trading volume of 3,067,385, the price of IBM is up by 0.88%, reaching $205.32.
- Current RSI values indicate that the stock is may be overbought.
- Next earnings report is scheduled for 43 days from now.
Expert Opinions on IBM
Over the past month, 1 industry analysts have shared their insights on this stock, proposing an average target price of $145.0.
- An analyst from UBS has decided to maintain their Sell rating on IBM, which currently sits at a price target of $145.
Options are a riskier asset compared to just trading the stock, but they have higher profit potential. Serious options traders manage this risk by educating themselves daily, scaling in and out of trades, following more than one indicator, and following the markets closely.
If you want to stay updated on the latest options trades for IBM, Benzinga Pro gives you real-time options trades alerts.
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© 2024 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.
Stocks won't hit new highs anytime soon and 3 things mean the market is fairly valued, Wells Fargo says
-
The S&P 500 probably isn’t hitting fresh highs anytime soon, according to Wells Fargo.
-
A handful of headwinds will keep a lid on further gains, strategists said.
-
The bank pointed to concerns surrounding a potential recession, AI, and geopolitical uncertainty.
The stock market’s long winning streak may be done for now, Wells Fargo said.
The bank’s strategists warned that stocks were unlikely to move significantly higher in the coming months and in their view, the market is “now fairly valued.”
That’s because to a trifecta of headwinds will cap gains for the S&P 500. The benchmark index is likely to face resistance around 5,670, the record high it notched earlier this summer.
Stocks continued to rally in August as investors gained more confidence about a soft landing and positioned for ambitious rate cuts from the Federal Reserve.
However, markets have way more uncertainty still looming, the bank said, pointing to geopolitical tensions in the Middle-East, doubts over whether the economy can avoid a recession, and concerns that the AI rally may be running out of steam.
Stocks are also navigating an election year, which has historically meant more volatility. Investors are assessing an uncertain political landscape, with presidential candidates Kamala Harris and Donald Trump remaining neck-and-neck in the latest polls.
“While we believe the S&P 500 Index remains in an uptrend, it now finds itself facing key resistance at the all-time high,” strategists said in a note on Monday. “For these reasons, we find it unlikely that the S&P 500 Index will reach meaningful new highs in the coming months.”
While stocks might not see a rally to fresh records soon, there could be an opportunity for investors to adjust and reallocate their portfolios to “especially unfavorable areas” — unloved areas of the stock market could have huge upside in the coming years.
That includes emerging markets, as well as US consumer discretionary, consumer staples, utilities, and real estate sectors.
Investors have tempered some of their enthusiasm for stocks since the start of the year, when lofty expectations for AI and easing monetary policy from the Fed boosted the market to a string of record highs. Since then, growth fears have overshadowed excitement about rate cuts, and questions about the sustainability of the AI rally have dented tech bullishness.
In the latest AAII Investor Sentiment survey, around 45% of investors said they feel bullish about the stock market over the next six months, down from 51% of investors who felt that way about a month ago.
Read the original article on Business Insider
Massive Insider Trade At Weatherford International
Making a noteworthy insider sell on September 9, John David Reed, EVP at Weatherford International WFRD, is reported in the latest SEC filing.
What Happened: According to a Form 4 filing with the U.S. Securities and Exchange Commission on Monday, Reed sold 6,805 shares of Weatherford International. The total transaction value is $639,390.
Weatherford International shares are trading down 0.69% at $90.32 at the time of this writing on Tuesday morning.
Delving into Weatherford International’s Background
Weatherford International provides diversified oilfield services across international markets for an array of oilfield types. The firm is a global market leader in artificial lift and tubular running services. Other key product lines include cementing products, directional drilling, and wireline evaluation.
Weatherford International: A Financial Overview
Revenue Growth: Weatherford International’s remarkable performance in 3 months is evident. As of 30 June, 2024, the company achieved an impressive revenue growth rate of 10.28%. This signifies a substantial increase in the company’s top-line earnings. As compared to competitors, the company surpassed expectations with a growth rate higher than the average among peers in the Energy sector.
Profitability Metrics:
-
Gross Margin: The company maintains a high gross margin of 36.58%, indicating strong cost management and profitability compared to its peers.
-
Earnings per Share (EPS): Weatherford International’s EPS is notably higher than the industry average. The company achieved a positive bottom-line trend with a current EPS of 1.71.
Debt Management: The company maintains a balanced debt approach with a debt-to-equity ratio below industry norms, standing at 1.48.
Exploring Valuation Metrics Landscape:
-
Price to Earnings (P/E) Ratio: The current P/E ratio of 13.55 is below industry norms, indicating potential undervaluation and presenting an investment opportunity.
-
Price to Sales (P/S) Ratio: With a P/S ratio of 1.25 below industry standards, the stock shows potential undervaluation, making it an appealing investment option for those focusing on sales performance.
-
EV/EBITDA Analysis (Enterprise Value to its Earnings Before Interest, Taxes, Depreciation & Amortization): With a below-average EV/EBITDA ratio of 6.27, Weatherford International presents an opportunity for value investors. This lower valuation may attract investors seeking undervalued opportunities.
Market Capitalization: Indicating a reduced size compared to industry averages, the company’s market capitalization poses unique challenges.
Now trade stocks online commission free with Charles Schwab, a trusted and complete investment firm.
The Importance of Insider Transactions
Investors should view insider transactions as part of a multifaceted analysis and not rely solely on them for decision-making.
When discussing legal matters, the term “insider” refers to any officer, director, or beneficial owner holding more than ten percent of a company’s equity securities, as stipulated in Section 12 of the Securities Exchange Act of 1934. This includes executives in the c-suite and significant hedge funds. Such insiders are required to report their transactions through a Form 4 filing, which must be completed within two business days of the transaction.
A new purchase by a company insider is a indication that they anticipate the stock will rise.
On the other hand, insider sells may not necessarily indicate a bearish view and can be motivated by various factors.
Essential Transaction Codes Unveiled
Digging into the details of stock transactions, investors frequently turn their attention to those taking place in the open market, as outlined in Table I of the Form 4 filing. A P in Box 3 indicates a purchase, while S signifies a sale. Transaction code C signals the conversion of an option, and transaction code A denotes a grant, award, or other acquisition of securities from the company.
Check Out The Full List Of Weatherford International’s Insider Trades.
This article was generated by Benzinga’s automated content engine and reviewed by an editor.
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© 2024 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.
Jeff Bezos' $80M Gulfstream G700: What Does This Purchase Say About Billionaire Spending?
Amazon founder Jeff Bezos recently purchased a new $80 million ride: a Gulfstream G700. This advanced private jet – boasting cutting-edge tech, a spacious cabin, and exceptional range – adds yet another item to the billionaire’s list of millions-worth purchases.
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Among this collection are a megayacht worth around $500 million, a $42 million clock in the mountains of West Texas, a $65 million Gulfstream G-650ER (that’s another private jet), and a $23 million mansion – just some of the extravagant purchases Bezos can afford.
Billionaires like Bezos have long been associated with lavish lifestyles – with private jets, superyachts, and sprawling real estate portfolios. According to Business Insider, billionaires can typically afford to spend around $80 million per year.
Trending: A billion-dollar investment strategy with minimums as low as $10 —you can become part of the next big real estate boom today.
With a net worth of around $194 billion, the Gulfstream purchase is only 0.04% of Bezos’ wealth. For many, these purchases demonstrate how wide the economic divide is.
Billionaire spending habits frequently gain public attention because they show how significant the disparity between the top 1% and average citizens is. While many Americans struggle to afford basic amenities, don’t have enough saved for retirement, and face increasing financial uncertainty, billionaires like Bezos can afford to spend millions on luxury items.
Critics argue that billionaire spending highlights the wealth gap in the U.S., where the top 1% hold nearly as much wealth as the bottom 90%. Others defend billionaire spending, claiming it stimulates economic growth and job creation.
See Also: Amid the ongoing EV revolution, previously overlooked low-income communities now harbor a huge investment opportunity at just $500.
Bezos’s jet purchase may seem extreme, but it’s part of a larger pattern of wealth distribution. Billionaires invest heavily in purchases like yachts, islands, and art. In 2021, yacht sales increased as billionaires sought privacy and security during the pandemic. The art market also surged, with global sales reaching $64.1 billion in 2019.
Luxury goods industries thrive when high-net-worth individuals seek out these items and make continual purchases. The G700 purchase alone supports jobs, from engineers and manufacturers to pilots and crew.
That’s not to say that billionaires only spend their money on lavish lifestyles, though. Many billionaires are known for their philanthropic efforts. Warren Buffett, George Soros, and Lynn Schusterman give away 20% or more of their wealth, while others, like Bezos and Elon Musk, have given away less than 1% of their wealth.
Despite contributing less than others, Bezos has still made significant charitable contributions. He has pledged $10 billion to fight climate change. However, extravagant purchases like jets and yachts often overshadow these charitable efforts.
Trending: This billion-dollar fund has invested in the next big real estate boom, here’s how you can join for $10.
For those nearing retirement, the spectacle of billionaire spending can feel distant from your financial reality. However, it highlights important economic trends and questions about wealth distribution that may impact policies affecting retirement, taxation, and financial security.
That being said, talking with a financial advisor can help you navigate your important financial decisions, focusing on the purchases and choices within your grasp and helping you secure your financial future.
Read Next:
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This article Jeff Bezos’ $80M Gulfstream G700: What Does This Purchase Say About Billionaire Spending? originally appeared on Benzinga.com
© 2024 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.
HQY vs. MEDP: Which Stock Is the Better Value Option?
Investors interested in stocks from the Medical Services sector have probably already heard of HealthEquity HQY and Medpace MEDP. But which of these two companies is the best option for those looking for undervalued stocks? Let’s take a closer look.
We have found that the best way to discover great value opportunities is to pair a strong Zacks Rank with a great grade in the Value category of our Style Scores system. The Zacks Rank favors stocks with strong earnings estimate revision trends, and our Style Scores highlight companies with specific traits.
HealthEquity has a Zacks Rank of #2 (Buy), while Medpace has a Zacks Rank of #3 (Hold) right now. This means that HQY’s earnings estimate revision activity has been more impressive, so investors should feel comfortable with its improving analyst outlook. However, value investors will care about much more than just this.
Value investors also try to analyze a wide range of traditional figures and metrics to help determine whether a company is undervalued at its current share price levels.
Our Value category highlights undervalued companies by looking at a variety of key metrics, including the popular P/E ratio, as well as the P/S ratio, earnings yield, cash flow per share, and a variety of other fundamentals that have been used by value investors for years.
HQY currently has a forward P/E ratio of 24.80, while MEDP has a forward P/E of 29.12. We also note that HQY has a PEG ratio of 0.88. This metric is used similarly to the famous P/E ratio, but the PEG ratio also takes into account the stock’s expected earnings growth rate. MEDP currently has a PEG ratio of 1.76.
Another notable valuation metric for HQY is its P/B ratio of 3.09. The P/B ratio pits a stock’s market value against its book value, which is defined as total assets minus total liabilities. For comparison, MEDP has a P/B of 13.78.
These metrics, and several others, help HQY earn a Value grade of B, while MEDP has been given a Value grade of C.
HQY is currently sporting an improving earnings outlook, which makes it stick out in our Zacks Rank model. And, based on the above valuation metrics, we feel that HQY is likely the superior value option right now.
Market News and Data brought to you by Benzinga APIs
© 2024 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.
Cohen & Steers Announces Preliminary Assets Under Management and Net Flows For August 2024
NEW YORK, Sept. 10, 2024 /PRNewswire/ — Cohen & Steers, Inc. CNS today reported preliminary assets under management of $88.1 billion as of August 31, 2024, an increase of $3.5 billion from assets under management of $84.6 billion at July 31, 2024. The increase was due to market appreciation of $3.7 billion and net inflows of $8 million, partially offset by distributions of $152 million.
|
Assets Under Management
|
|||||
|
($ in millions) |
AUM |
Net |
Market |
AUM |
|
|
By investment vehicle: |
7/31/2024 |
Flows |
Appreciation |
Distributions |
8/31/2024 |
|
Institutional Accounts: |
|||||
|
Advisory |
$19,292 |
($7) |
$918 |
– |
$20,203 |
|
Japan Subadvisory |
8,656 |
25 |
506 |
(58) |
9,129 |
|
Subadvisory excluding Japan |
5,816 |
(45) |
325 |
– |
6,096 |
|
Total Institutional Accounts |
33,764 |
(27) |
1,749 |
(58) |
35,428 |
|
Open-end Funds |
39,420 |
34 |
1,573 |
(43) |
40,984 |
|
Closed-end Funds |
11,391 |
1 |
347 |
(51) |
11,688 |
|
Total AUM |
$84,575 |
$8 |
$3,669 |
($152) |
$88,100 |
About Cohen & Steers. Cohen & Steers is a leading global investment manager specializing in real assets and alternative income, including listed and private real estate, preferred securities, infrastructure, resource equities, commodities, as well as multi-strategy solutions. Founded in 1986, the firm is headquartered in New York City, with offices in London, Dublin, Hong Kong, Tokyo and Singapore.
View original content:https://www.prnewswire.com/news-releases/cohen–steers-announces-preliminary-assets-under-management-and-net-flows-for-august-2024-302244288.html
SOURCE Cohen & Steers, Inc.
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© 2024 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.
Moms for America Floods the Swamp with Deluge of Opposition to the Hinson-Marshall EATS Act
WASINGTON, D.C., Sept. 10, 2024 (GLOBE NEWSWIRE) — Today, Moms for America, a conservative advocacy group that focuses on pro-family issues, flooded Capitol Hill in meetings discussing their opposition to the dangerous EATS Act, H.R. 4417/S. 2019, that would hand American pork and other production over to Chinese multi-national conglomerates like Smithfield, and the global meat cartel.
The EATS Act, led by Sen. Roger Marshall, R-KS, and Rep. Ashley Hinson, R-IA, is backed by the National Pork Producers Council and their largest member, Smithfield, who owns one in every six sows in America, and whose purchase was financed by the Chinese Communist Party (CCP) in 2013. Moms For America is opposed to the EATS Act because it would upend state right’s and cede greater control of America’s agriculture over to China.
President Biden’s Secretary of Agriculture, Tom Vilsack, D-IA, along with U.S. House Agriculture Committee Chairman Glenn “GT” Thompson, R-PA, supports including EATS Act language in the upcoming Farm Bill, and Thompson included a version of the bill in his Farm Bill that passed the Committee in May. Its inclusion is opposed by more than 2,000 diverse opponents that include Moms For America, Farm Action, Competitive Markets Action, the Organization of Competitive Markets, the American Grassfed Association, and three of the nation’s top American-owned pork producers Heritage Foods, Niman Ranch, and Clemens Food Group/Hatfield Meats.
“Smithfield’s EATS Act is the greatest threat to food safety and security that Moms across America have seen in half a century,” said Kimberly Fletcher, president and founder of Moms for America. “Ensuring we prevent the Chinese Communist Party from further consolidating food production in the U.S. is a critical component of our legislative agenda, and this globalist-backed federal power grab by the swamp must be defeated at all costs.”
“Congress must do everything in its power to help strike the terrible EATS Act language included in the House Farm Bill that would decimate producers across the U.S. and nullify countless state and local laws designed to protect small and midsized farmers,” said Marty Irby, president and CEO at Competitive Markets Action and Capitol South, LLC, who represents Moms for America on Capitol Hill. “This radical assault on American family farmers by the global meat cartel and Members of Congress who support them should have every farmer, mother, and American voter up in arms.”
In March, 10 U.S. House Republicans, led by House Freedom Caucus (HFC) champion Rep. Anna Paulina Luna, R-FL, sent a letter that included HFC chairman Bob Good, R-VA, to Thompson and Ranking Member David Scott against the nullification of Prop 12 that followed a similar October 2023 letter to Thompson and Scott signed 16 House Republicans led by front-liner Rep. Andrew Garbarino, R-NY.
To date, 230 bipartisan Members of Congress have vocalized their opposition to the nullification of state laws by Thompson and Rep. Ashley Hinson, R-IA, and Sen. Roger Marshall, R-KS, who continue to champion the assault. 171 bipartisan Members of the House sent a letter to Thompson and Scott in August of 2023 and 31 U.S. Senators sent a similar letter to Senate Agriculture Chairman Debbie Stabenow, D-MI, and John Boozman, R-AR, last August. Unfortunately, Boozman, included the nullification of state agriculture laws in his farm bill outline released earlier this year.
Other kitchen table issues Moms for America will be discussing include foster care, fiscal debt, commodity checkoff program reform, and their opposition to the digital dollar, DEI standards, and men competing in women’s sports.
Founded in 2004, Moms for America is a national, non-profit 501c3 educational corporation rooted on the principles of liberty and virtue our nation was founded on, and focused on promoting these principles, values, and virtues in the home and family, particularly through the women and mothers of America. To learn more about Moms for America, please visit momsforamerica.us. You can follow MFA on Twitter, Facebook, and Instagram.
Marty Irby Competitive Markets Action 202-821-5686 marty@competitivemarketsaction.org
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Dow Jones Futures Fall After Trump-Harris Debate; Inflation Data On Tap
Dow Jones futures fell modestly overnight, along with S&P 500 futures and Nasdaq futures. The debate between former President Donald Trump and Vice President Kamala Harris is over. The CPI inflation report is due early Wednesday.
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Stocks Mixed After Big Events; Exelixis, DaVita And JPMorgan Chase In Focus
The stock market rally had a mixed session Tuesday. The Nasdaq led while the S&P 500 moved back to the cusp of a key level.
Tesla (TSLA) jumped on continued strong China sales and other news. Nvidia (NVDA) rose slightly. Several software stocks, including Microsoft (MSFT), advanced as NYSE-listed Oracle (ORCL) gapped out of a base on earnings.
The Dow Jones fell modestly. Warnings from Dow components JPMorgan Chase (JPM), Goldman Sachs (GS), as well as auto lending giant Ally Financial (ALLY), hit banks and lenders.
The video embedded in this articles discusses the current market action and analyzes Exelixis, DaVita and JPMorgan stock.
Dow Jones Futures Today
Dow Jones futures were 0.4% below fair value. S&P 500 futures declined 0.5% and Nasdaq 100 futures fell 0.6%.
Dow futures extended losses during and after the presidential debate, but it’s not clear if that was the driving force.
The Japanese yen hit its highest level vs. the dollar since Jan. 2, after a Bank of Japan policymaker signaled support for further rate hikes. The unwinding of the yen-carry trade has been a negative for markets.
Crude futures rose slightly.
Remember that overnight action in Dow futures and elsewhere doesn’t necessarily translate into actual trading in the next regular stock market session.
Trump-Harris Presidential Debate
The Trump-Harris debate began at 9 p.m. ET. and ended more than 90 minutes later.
The presidential race is tight. So even a tiny post-debate shift could have outsized expectations.
It’s possible that whichever party wins the White House also will carry Congress, offering the opportunity for sweeping policy moves.
During the debate, Harris said she has “plan to lift up the middle class.” Trump said his tariffs got billions of dollars from China and didn’t cause inflation, while inflation spiked under Biden-Harris.
Harris said she supports “diverse sources” of energy while Trump said she’d never allow fracking in Pennsylvania.
The debate didn’t cover tax policy, perhaps the issue of most importance to financial markets.
Who won the debate? Well, prediction markets generally showed Harris gaining ground and Trump slipping in terms of who would win the election.
Trump Media and Technology Group (DJT), majority owned by Donald Trump, rose 3.3% to 18.63 in Tuesday’s trading. DJT stock often trades as a sentiment indicator toward Trump and his candidacy. Trump Media, which owns Truth Social, has scant revenue.
Join IBD experts as they analyze leading stocks and the market on IBD Live
CPI Inflation Report
The Labor Department will release the August consumer price index at 8:30 a.m. ET. Economists expect a 0.2% monthly gain for the CPI and core CPI. CPI inflation should fall to 2.6% vs. a year earlier while core inflation holds at 2.9%.
On Thursday, Labor will release the producer price index.
The Fed has pivoted from inflation risks to economic growth worries, but a tame CPI and PPI could give policymakers more room the cut rates by 50 basis points on Sept. 18. Markets largely expect only a quarter-point Fed rate cut.
Stock Market Rally
The stock market rally had a mixed session Tuesday, though the indexes finished relatively well.
The Dow Jones Industrial Average dipped 0.2% in Tuesday’s stock market trading, but closing above the 21-day line. The S&P 500 index rose 0.45%, just below its 50-day line. The Nasdaq composite advanced 0.8%, still well below the 50-day line. The small-cap Russell 2000 lost a fraction, well off intraday lows.
The Invesco S&P 500 Equal Weight ETF (RSP) edged higher, just above the 21-day. Along with the Dow and a number of nontech sectors, RSP is holding up relatively well.
JPMorgan stock, Goldman and Ally helped lead sharp losses Tuesday in banks and lenders, though many other financials did just fine.
While the Nasdaq and S&P 500 rose for a second straight session, they are still trading within Friday’s bearish sell-off.
U.S. crude oil prices tumbled 4.3% to $65.75 a barrel, the lowest settlement since December 2021. OPEC, which delayed a planned production hike last week, cut global oil demand forecasts once again. Weak China imports also hurt.
The 10-year Treasury yield fell 5 basis points to 3.64%, a fresh 52-week low.
ETFs
Among growth ETFs, the iShares Expanded Tech-Software Sector ETF (IGV) rose 1.6%, buoyed by Oracle, Microsoft and a few other big names. The VanEck Vectors Semiconductor ETF (SMH) climbed 0.95%. Nvidia stock is the No. 1 member in SMH.
Reflecting more-speculative story stocks, ARK Innovation ETF (ARKK) rallied 1.5% and ARK Genomics ETF (ARKG) gained 1.8%. Tesla stock is a major holding across Ark Invest’s ETFs. Cathie Wood also has taken a big position in NVDA stock in recent months.
SPDR S&P Homebuilders ETF (XHB) advanced 0.5%. The Energy Select SPDR ETF (XLE) slumped 1.7% and the Health Care Select Sector SPDR Fund (XLV) rose 0.5%
The Industrial Select Sector SPDR Fund (XLI) edged up 0.2%.
The Financial Select SPDR ETF (XLF) fell 1%. JPM stock and Goldman Sachs are big XLF holdings.
Time The Market With IBD’s ETF Market Strategy
Stocks In Buy Zones
Exelixis (EXEL), DaVita (DVA) and On Holding (ONON) are in buy areas, all bouncing slightly off their 21-day lines. EXEL stock rose 3.1%, breaking a short downtrend in an emerging base after an early August earnings breakout. DaVita stock climbed 2.2%, continuing to trade within a flat-base buy zone. ONON stock advanced 2%, holding a 44.30 buy point.
Nvidia stock and DaVita are on IBD Leaderboard. DaVita was Tuesday’s IBD Stock Of The Day.
JPMorgan, Ally Hit Lenders
JPMorgan and Goldman Sachs sold off 5.2% and 4.4%, respectively. Both tumbled below buy points and their 50-day lines. JPMorgan warned of lower net interest income while Goldman sees weaker trading revenue.
Ally Financial warned of weaker credit and net interest income trends. Ally Financial dived 17.6%. That added to lenders’ misery, while also knocking auto dealers like Carvana (CVNA) as well as automakers such as General Motors (GM).
Fed Vice Chair for Supervision Michael Barr said Tuesday that the biggest U.S. banks face a 9% hike in capital requirements as part of changes related to Basel III global standards. But that hike, well off initial plans, was largely expected.
Tesla Stock
Tesla stock rose 4.6% to 226.17, moving above the 50-day line.
The latest weekly Tesla sales in China were strong once again, turning positive year to date. Meanwhile, Deutsche Bank initiated TSLA stock at a buy with a $295 price target.
Shares pared gains as the market wavered. Ally Financial’s warning also may have affected Tesla.
Tesla stock has a 271 official buy point. Investors could use the Sept. 5 high of 235 as a new early entry.
What To Do Now
With the stock market rally still struggling, it’s not a good time for new buys.
But a large number of stocks across a variety of sectors are setting up or close to being in position. So investors need to track those names and stay engaged with the market.
Read The Big Picture every day to stay in sync with the market direction and leading stocks and sectors.
Please follow Ed Carson on Threads at @edcarson1971 and X/Twitter at @IBD_ECarson for stock market updates and more.
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