economic crisis posts
FeedPosted Nov 24th 2009 9:50AM by Mark Fightmaster (RSS feed)
Filed under: Earnings reports

Discount retailer Dollar Tree (
DLTR), which sells everything for a dollar or less, reported third-quarter earnings Tuesday morning. The company earned
76 cents per share during the quarter, nearly 62% higher than last year's same-quarter earnings. Sales for the quarter increased by more than 12% to $1.25 billion from $1.11 billion in sales from last year.
Dollar Tree beat the
Street's earnings expectation of 66 cents per share by a dime and topped and revenue expectations of $1.24 billion. "I am pleased with our third quarter performance," said CEO Bob Sasser in a statment. "Sales and earnings were above plan." Solid earnings from a company specializing in cheap prices during a recession -- is anyone really surprised?
Continue reading Dollar Tree posts strong third-quarter earnings
Posted Nov 16th 2009 9:40AM by Mark Fightmaster (RSS feed)
Filed under: Earnings reports, Lowe's Cos (LOW)
Lowe's (LOW) kicked off the week's earnings reports by posting third-quarter earnings of 24 cents per share, matching the consensus estimate. Revenue checked in at $11.4 billion, which -- while 3% lower than a year ago -- was better than the expected revenue of $11.28 billion. LOW's same-store sales dropped 7.5%.
Looking ahead, Lowe's forecast fourth-quarter earnings between nine and 13 cents per share and full-year earnings between $1.16 and $1.20 per share. Both of those forecast ranges surround the expected 10 cents per share and $1.20 per share, respectively. Lowe's also noted that it seems that some of the home markets feeling the biggest crunch in the economic crisis are stabilizing. Nevertheless, the home-improvement firm was negatively hit as customers were putting off larger purchases thanks to the economic situation.
Continue reading Lowe's third-quarter profit falls
Posted Oct 12th 2009 2:50PM by Tom Johansmeyer (RSS feed)
Filed under: Employees, Economic data, Recession, Financial Crisis
We've watched stock market numbers bounce around for two years. Unemployment stats have served as unpleasant reminders that, for some, leading indicators haven't translated to reality. We look for so many ways to understand the brutal economic environment with which we've had to contend, and all the choices can make your head spin. So, let's make it simple. Here are eight ways to tack a label onto the financial world in which we live.
1. Lost market value
Total stock market losses from October 2007's top to March 2009's bottom: $11.2 trillion
Total gains in the stock market since the bottom: $4.6 trillion
Lost ground: $6.6 trillion
2. Bad days
Percentage of the 10 worst days in history for the Dow Jones Industrial Average that happened in 2008, by point drops: 60%
Percentage of the 10 worst days in history for the DJIA that happened in 2008, by percentage drops: 30%
3. Mutual funds
Value of mutual fund assets at the end of 2007: $6.5 trillion
... and a year later: $3.7 million
Lost value: $2.8 trillion
But, it got a little better at the end of August 2009: $4.5 trillion (value of assets)
Continue reading Eight ways to define the recession
Posted Sep 2nd 2009 9:30AM by Mark Fightmaster (RSS feed)
Filed under: Bad news, Economic data

The Automatic Data Processing (ADP) employment report was released before the opening bell Wednesday morning, showing that the
private sector lost 298,000 jobs during August. Expectations called for a
loss of 255,000 jobs, but the loss was better than the revised 360,000 jobs lost during July.
A spokesperson for ADP noted a "gradual improvement in labor markets" because "monthly losses are diminishing." That said, the group did note that job losses are likely to continue for "several more months."
In addition to this news, Challenger Gray & Christmas reported that layoffs planned by major U.S. corporations
fell 21% from July to August. The 76,456 layoffs in August were the second-lowest amount cut in 2009.
Continue reading Job cuts slow in August, more not-so-bad news
Posted Aug 20th 2009 8:15AM by Mark Fightmaster (RSS feed)
Filed under: Before the bell, Earnings reports, Bad news, Sears Holdings (SHLD)

Slumping sales did in
Sears Holdings (NASDAQ:
SHLD) in the
second quarter, as the company posted a surprise loss of 17 cents per share (excluding items). The
Street expected the company to report earnings of 38 cents per share. Why the staggering disparity?
One reason is that comparable-store sales dropped 8.6% (12.5% at Sears stores and 3.9% at Kmart). Another reason is what the company called "significant items," which include costs associated with store closings and severance (32 cents per share), domestic pension plan expenses (22 cents per share), mark-to-market losses on Sears Canada hedge transactions (8 cents per share), and a positive impact of a reversal of a $62-million reserve (29 cents per share). The store closings include charges that related to the decision to close 28 underperforming stores.
Continue reading Sears reports a surprise loss; could be in for a long day
Posted Aug 2nd 2009 11:30AM by Tom Johansmeyer (RSS feed)
Filed under: Private equity
Private equity returns are down 27.6% year-over-year for the 12-month period ending July 30, 2009, according to a Preqin report received by BloggingStocks. The London-based research house notes, however, that the global private equity industry's dry powder (i.e., uncommitted assets) continues to exceed $1 trillion, suggesting that there is still plenty of capital waiting for a rainy day.
Returns for the past 12 months reflect all the nastiness we've seen and lived -- bailouts, company collapses, equity and credit market mayhem and unemployment rates dangerously close to double-digits. But, the money is still coming in. Preqin puts the rate by which contributions outpaced distributions at 235% for buyout funds in 2008. This category raised $148 billion while distributing only $63 billion, making last year the most imbalanced for these two measures in history.
Continue reading Private equity returns down, still plenty of cash on the sidelines
Posted Jul 28th 2009 3:30PM by Tom Johansmeyer (RSS feed)
Filed under: Headline news, Recession, Financial Crisis
With all the focus on unemployment, the usual recession victims have been overlooked a bit. The over-65 crowd, living on fixed incomes, has seen portfolios decimated and those consistent dividends from blue chippers evaporate. At the same time, medical costs are headed in the other direction. Expenses up and income down, seniors have found only one solution: credit cards.
Low- and middle-income consumers who've reached or passed age 65 had $10,235 in credit card debt, on average, last year, up a disturbing 26% from 2005. Meanwhile, credit card debt climbed only 3% across all age groups – to $9,827. From the fourth quarter of last year to the first this year, total revolving debt fell a modest 2.3% to $939.6 billion.
Continue reading Old folks leaning on credit cards to get by
Posted Jul 23rd 2009 9:20AM by Mark Fightmaster (RSS feed)
Filed under: Goldman Sachs Group (GS)
Who is ready for their morning dose of anger? That is what I thought this morning when I found out about the higher pay at some investment banks following the recent bailouts. Well, let me qualify that -- it isn't necessarily higher pay, but some execs will receive the same amount as they did before the bailouts. Some Wall Street firms, enjoying improving profits are on track to "pay employees as much as, or even more than, it did in the pre-crisis days." The top six U.S. banks have set aside $74 billion to pay employees, up from $60 billion last year, according to the Washington Post.
Continue reading Wall Street pay is higher than pre-crisis levels
Posted Jul 22nd 2009 2:40PM by Mark Fightmaster (RSS feed)
Filed under: Competitive strategy, Google (GOOG), Microsoft (MSFT), Yahoo! (YHOO), Dell (DELL), eBay (EBAY), Starbucks (SBUX), Amazon.com (AMZN), Intel (INTC), Marketing and advertising, NIKE, Inc'B' (NKE)
In the wake of Starbucks (NASDAQ: SBUX) stronger-than-expected earnings, I found an interesting article about a study published by wiki provider Wetpaint and the Altimeter Group. The study suggests that when a company/brand is more active with its consumers through social media (the likes of Facebook and Twitter), it is more likely that the company will have financial success. The study looked at a group of 100 companies from BusinessWeek's listing of the top 100 brands of 2008 and their activity on Facebook, Twitter, and the likes.
According to the study, the brands scoring the highest on the engagement scale saw 18% revenue growth in the past year. Those brands with the least engagement saw revenue decline 6%. Companies that were the most active were classified as "mavens," while the least active were called "wallflowers."
Continue reading Is the use of social networking the key to a company's success?
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