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Exxon reports third straight quarter of losses with revenue down nearly 30%

Exxon’s revenue fell nearly 30% during the third quarter as the coronavirus pandemic batters the oil industry….

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A view of the Exxon Mobil refinery in Baytown, Texas.

Jessica Rinaldi | Reuters

Exxon Mobil on Friday reported its third straight quarter of losses as depressed oil demand sparked by the coronavirus pandemic weighed on the company’s operations.

During the third quarter, the company lost $680 million, although Exxon said results improved on a quarter-over-quarter basis thanks to “early stages of demand recovery.”

On an adjusted basis, Exxon lost 18 cents per share during the quarter while generating $46.2 billion in revenue. The Street was expecting a 25 cent loss per share and $46.01 billion in revenue, according to estimates from Refinitiv.

A year earlier, the company earned 75 cents per share on $65.05 billion in revenue. During the second quarter of 2020, Exxon lost 70 cents per share on an adjusted basis, while revenue came in at $32.61 billion.

“We remain confident in our long-term strategy and the fundamentals of our business, and are taking the necessary actions to preserve value while protecting the balance sheet and dividend,” Chairman and CEO Darren Woods said. “We are on pace to achieve our 2020 cost-reduction targets and are progressing additional savings next year as we manage through this unprecedented down cycle.”

Exxon previously announced a reduction in its capital spending program — from $33 billion to $23 billion — and the company said it’s ahead of schedule due to increased efficiencies and a slower project pace, among other things. The company is targeting to spend $16 billion to $19 billion in its 2021 capital program.

Exxon also said Thursday it intends to reduce its U.S. staff by around 1,900 employees, with global workforce reductions potentially rising to as much as 15%. As of the end of 2019 Exxon had a global workforce of 88,300, including 13,300 contractors.

As oil and gas companies grapple with the ongoing demand loss from Covid-19, some companies have announced dividend reductions in an effort to slash costs.

Exxon has repeatedly said its dividend remains a priority, and on Wednesday the company maintained its fourth-quarter dividend at 87 cents per share. But it was the first time since 1982 that the company didn’t raise its payout. The company currently yields 10.56%.

Research firm Edward Jones noted that there’s an increasing risk that Exxon will have to cut its dividend in 2021 if demand doesn’t fully recover.

It’s been a difficult few months for Exxon. In August, the company was removed from the Dow Jones Industrial Average. Chevron recently surpassed Exxon for the first time to become the most valuable U.S. energy company based on market capitalization, although Exxon’s current market valuation is higher. Chevron also reported a difficult quarter on Friday.

Shares of Exxon slid 1% on Friday. For 2020, shares have declined 53%.

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Source: https://www.cnbc.com/2020/10/30/exxon-xom-earnings-q3-2020.html

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Source: https://www.cnbc.com/earnings/

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Stitch Fix shares surge as online styling service reports surprise profit

Stitch Fix shares jumped after the online shopping and styling service reported a surprise profit for its fiscal fourth quarter.

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The Stitch Fix application for download in the Apple App Store on a smartphone arranged in Hastings-on-Hudson, New York, U.S., on Saturday, June 5, 2021. Stitch Fix Inc. is scheduled to release earning on June 7.

Tiffany Hagler-Geard | Bloomberg | Getty Images

Stitch Fix shares jumped 14% in extended trading Tuesday after the online shopping and styling service reported a surprise profit for its fiscal fourth quarter.

Sales for the three-month period ended July 31 also came in higher than analysts were expecting, thanks to outsized growth in Stitch Fix’s women’s and kids’ categories. Menswear has been growing more slowly, the company said.

Consumers have been splurging on new outfits in recent months, as many head back to school and return to social gatherings. Some have also citied the need for new clothes after either gaining or losing weight during the Covid pandemic.

Here’s how Stitch Fix did compared with what Wall Street was expecting, based on a survey of analysts by Refinitiv:

  • Earnings per share: 19 cents vs. a loss of 13 cents expected
  • Revenue: $571.2 million vs. $548 million expected

Net income attributable to shareholders was $28 million, or 19 cents per share, in the latest period. A year ago, it posted a net loss of $44.5 million, or 44 cents a share. Analysts had been looking for the company to book a loss of 13 cents per share.

Revenue grew to $571.2 million from $443.4 million a year earlier. That was better than analysts’ expectations for $548 million.

Stitch Fix reported nearly 4.2 million active clients, up 18% from a year earlier. The company said net revenue per active client was $505, surpassing the $500 threshold for the first time ever. Customers have been purchasing more items to keep at home, Stitch Fix said, as they have more brands and price points to choose from.

Stitch Fix defines active clients as people who either ordered a “Fix” subscription or bought an item directly from its website in the preceding 52 weeks from the final day of the quarter.

The company also said it had its lowest ever churn rate at the end of the period, meaning its customers are sticking around.

Last month, Stitch Fix finally opened up its direct-buy option, which is now known as “Freestyle,” to the public. This allows people to shop Stitch Fix for individual items of clothing, without needing to sign up for a subscription.

CEO Elizabeth Spaulding said this should help Stitch Fix grow its addressable market in the year ahead. The company’s next initiative will be to market and raise broader awareness around the offering, she said. Stitch Fix is preparing to roll out a national advertising campaign on the debut.

Early indications are that “Freestyle” is meaningfully accretive to the company’s revenue per active client metric, Spaulding told analysts on a conference call.

“Clients have agency, flexibility and choice while also experiencing a highly personalized shopping experience,” Spaulding said.

For its fiscal first quarter, Stitch Fix said it sees sales in a range of $560 million to $575 million. That’s below analysts’ expectations for $588 million.

For the upcoming fiscal year, Stitch Fix anticipates sales rising 15% or more from the prior year. Analysts polled by Refinitiv had been looking for an 18% increase.

While the entire retail industry is working through supply chain complications, Stitch Fix said it is seeing a small impact, but nothing that will hurt the business in the fall and winter months. The company said it is less reliant on Vietnam, where manufacturing has largely come to a standstill due to ongoing pandemic lockdowns in the region.

As of Tuesday’s market close, Stitch Fix shares have fallen nearly 39% this year. The company has a market cap of $3.8 billion.

Find the full press release from Stitch Fix here.

Sales for the three-month period ended July 31 also came in higher than analysts were expecting, thanks to outsized growth in Stitch Fix’s women’s and kids’ categories. Menswear has been growing more slowly, the company said.

Source: https://www.cnbc.com/2021/09/21/stitch-fix-sfix-q4-2021-earnings.html

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© 2021 CNBC LLC. All Rights Reserved. A Division of NBCUniversal

Data is a real-time snapshot *Data is delayed at least 15 minutes. Global Business and Financial News, Stock Quotes, and Market Data and Analysis.

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Data also provided by Reuters

Source: https://www.cnbc.com/earnings/

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