Royal Caribbean reports bigger-than-expected loss on virus hit

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Aug 10 (Reuters)Royal Caribbean Group RCL.N reported a bigger-than-expected quarterly loss on Monday, as the cruise operator suffered from a coronavirus-driven halt to sailings that is now on course to last deep into the second half of 2020.

The company’s shares, which have lost over 60% of their value this year, fell nearly 2% in premarket trading.

Royal Caribbean, which dropped “Cruises” from its corporate name last month, expects to burn $250 million to $290 million of cash on average per month, while its operations are suspended during one of the industry’s worst periods in history.

Royal Caribbean, which has pledged dozens of ships to raise billions of dollars of new debt, said it had about $4.1 billion in cash and cash equivalents at the end of June.

Net loss attributable to the company was $1.64 billion, or $7.83 per share, in the second quarter ended June 30, after also writing down the value of certain assets by $156.5 million.

On an adjusted basis, Royal Caribbean lost $6.13 per share, while analysts had expected a loss of $4.82 per share, according to Refinitiv IBES data.

(Reporting by Uday Sampath in Bengaluru; Editing by Shounak Dasgupta)

(([email protected]; within U.S.+1 646 223 8780; Twitter: @sampath_uday))

The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

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Embraer (ERJ) Q2 Earnings Miss Estimates, Revenues Fall Y/Y

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Embraer SA ERJ incurred second-quarter 2020 adjusted loss of $1.08 per American Depository Share (ADS), wider than the Zacks Consensus Estimate of a loss of 56 cents and the year-ago quarter loss of 8 cents.

Including one-time items, the company incurred a GAAP loss of $1.71 per share compared with a loss of 4 cents in the year-ago quarter.

Revenues

Embraer’s second-quarter revenues came in at $537.2 million, plunging 61% year over year. The decline was due to lower revenues in each of the company’s segments during the quarter.

Order and Delivery

Embraer delivered a total of 17 jets in the reported quarter, down 66.7% year over year. The company delivered 4 commercial and 13 executive (9 light and 4 large) jets during the second quarter compared with 26 commercial and 25 executive (19 light and 6 large) jets in the second quarter of 2019.

Embraer’s backlog at the end of the quarter was $15.4 billion, down from $16.9 billion in the year-ago quarter.

Operational Highlights

In the second quarter, the company’s cost of sales and services totaled $520.8 million, down from $1,180.1 million in the prior-year quarter.

Also, Embraer’s gross profit slumped 91.7% year over year to $16.4 million.

Segment Result

Segment-wise, revenues in the Commercial Aviation segment were $108.6 million, which declined 82.8% on a year-over-year basis due to lower deliveries in the current quarter.

Revenues in the Executive Jets segment were $149.9 million, which declined 49.5% year over year on lower deliveries in the second quarter of

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Duke Energy Beats Earnings Forecast, Slips on Revenue

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Duke Energy  (DUK) – Get Report beat Wall Street’s adjusted second-quarter earnings forecast but came up short on revenue expectations.

Shares of the Charlotte-based utility were up $1.55 to $87.89 in premarket trading Monday.

The company said the second-quarter results “reflect the initial impacts of COVID-19 on our businesses and demonstrate our ability to adapt quickly to mitigate the effects of the economic downturn.”

Duke Energy reported a second-quarter loss of $802 million, or $1.13 a share, compared with earnings of $832 million, or $1.12 a share a year ago. Adjusted earnings came to $1.08 a share, beating the Zacks estimate of $1.04.

Revenue totaled $5.4 billion, down 7.7% from a year ago, and below Zack’s call for $5.8 billion.

The upcoming fiscal year’s earnings are expected to be between $5.05 and $5.45 a share.

During the quarter, the commercial renewables sector saw growth from new projects placed in-service, and gas utilities and infrastructure saw higher results from the Piedmont North Carolina rate case and lower operating and maintenance cost. 

Last year, Duke said its subsidiary Piedmont Natural Gas reached an agreement with North Carolina consumer and industrial groups where all parties agreed to a 3% increase in rates, which is about one-third of the 9% increase Piedmont originally requested.

The company said the favorability was offset by lower results at electric utilities and infrastructure, driven by mild weather, lower volumes from commercial and industrial customers and higher depreciation on a growing asset base. 

“Despite challenges the first

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Gold And Silver Have Been Explosive – Platinum Could Be Next (NYSEARCA:PPLT)

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The bullish drumbeat continued to resonate through the gold and silver futures markets over the past week. Silver closed the week at over the $26 per ounce level, and gold was looking down at $2000. The falling dollar and the record level of government and central bank stimulus continue to pour fuel over a bullish fire in the two leading precious metals.

While gold passed the $2000 per ounce level, platinum was still looking up at $1000. The metal with the former nickname as “rich person’s gold” has been anything but precious. Platinum, a metal that routinely commanded a premium to gold before 2015, was trading at less than half the value.

The platinum futures market is far less liquid than gold and silver as daily volumes, and open interest is a fraction of the other two leading precious metals. The low level of liquidity could be one of the most bullish factors for platinum when investment demand returns to the market, and it decides to finally catch-up with its precious cousins. Markets with limited liquidity are susceptible to price gaps. Anyone looking for value in the precious metals arena needs to look seriously at the platinum market. The Aberdeen Standard Physical Platinum Shares ETF product (PPLT) and the GraniteShares Platinum Trust (PLTM) are the two platinum ETFs that hold 100% of their net assets in physical platinum bullion.

Gold continues to make higher record highs- The price action on August 7 was a warning sign

July 2020

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Coronavirus Update: Kodak’s Loan Is Frozen Pending SEC Probe

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Good morning, it’s Monday, August 10. Here’s your daily coronavirus update.

There are over 19.8 million cases of the virus worldwide, with over 731,000 deaths.

According to Johns Hopkins, the U.S. has surpassed 5 million cases with over 160,200 deaths.

According to the COVID-19 Tracking Project, there were 51,291 new cases reported Sunday. 711,984 new tests were reported. And 616 deaths were reported yesterday.

U.S. officials froze a $765 million loan to Eastman Kodak amid allegations of wrongdoing and a reported investigation by the Securities and Exchange Commission.

The U.S. International Development Finance Corp., known as the DFC, said it will not proceed with the loan, which was granted last month to the photographic equipment-maker to help it transition to producing pharmaceuticals for the U.S. government, until ‘serious’ allegations of wrongdoing were addressed.

The loan would help Kodak make ingredients for drugs such as hydroxychloroquine–the drug that has been touted by President Donald Trump and other officials to help treat COVID-19. Scientific studies, however, have not back these claims and Dr. Anthony Fauci has said that the data shows that hydroxychloroquine is ineffective against COVID-19.

“Recent allegations of wrongdoing raise serious concerns,” the DFC said over the weekend. “We will not proceed any further unless these allegations are cleared.”

In recent days, Kodak has been soaring higher. But the surge in the stock prompted a second look at the loan details from the chair of the U.S. House Financial Services Committee, Maxine Waters, who also urged the Securities and

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