Amazon reported fourth quarter sales after the close of the market on Wednesday, with results that surprised analysts by underperforming on sales growth versus expectations, even though they had higher income than expected. Since the stock price is driven by growth first and earnings later, shares declined from their all-time high in early trading, down about 3 percent in the first half hour on Friday. Investors were also unhappy with first quarter 2017 guidance, with lower profits expected again due to “continuation of the step-up investment that we saw in the second half of last year.” Net sales for the quarter were […]
Earnings Reports
Apple’s Services Pass $7 Billion In Holiday Quarter
Apple reported sales for the holiday quarter — Q1 2017 in their fiscal year — that were slightly ahead of the company’s record performance a year ago, and modestly ahead of analysts’ estimates as well. Sales were $78.4 billion, with earnings per share of $3.36. The services segment, which includes iBooks (and digital audiobooks sold through iTunes) plus a whole lot else, continued its growth at a comparable pace to recent quarters, at $7.172 billion, up 18 percent from a year ago. (The underlying percentage growth was probably higher, since last year’s results included a big one-time patent lawsuit settlement of […]
Quarto to Sell Ailing Books & Gifts Direct; Peanuts Stake for Sale
After years of poor results from the Books & Gifts Direct business in Australia and New Zealand, Quarto announced preliminary agreement on a sale on that division, with the deal “anticipated to close in the coming weeks.” They are expected to receive a mere $1 million (Australian) in cash, plus $4.75 million “in interest-bearing loan notes which are repayable out of cash generated by the business.” Assuming that loan is repaid in full, Quarto will take a writedown of approximately $11 million (US). Otherwise, Quarto told investors they “expect to report profits in line with management expectations” for 2016. Good performance from the recently-acquired Harvard […]
Barnes & Noble Lays Another Holiday Egg
We are accustomed to mediocre holiday sales reports from Barnes & Noble, since the last time the bookseller recorded an actual gain in core, same-store holiday book sales was the 2011 season. But even by that low bar, BN outdid themselves in holiday disappointment this time around: Same-store sales for the nine-week holiday period decreased 9.1 percent — as online sales gained “approximately 2 percent.” The company didn’t try to pretend this was ok: “We were not pleased with our results,” ceo Len Riggio says in the release, and he really can’t blame this on the fired Ron Boire. Riggio […]
Scholastic Gains On Smaller Potter Bump
Scholastic reported fiscal second quarter results Thursday morning, for the period through November 30, with another Harry Potter boost from Fantastic Beasts lifting sales, albeit less dramatically than the gains the previous quarter from HP and the Cursed Child. Sales of $623 million were up $21 million, or 3.5 percent, with operating profit of $111.4 million up $5.7 million. Trade publishing sales were $98.5 million — up $36.8 million “on the strength of Harry Potter publishing” (while in the previous quarter, Potter drove a $69.6 million gain). Strong trade sales helped make up for declines of $4.8 million in book fairs […]
Wiley Suffers Declining Book Sales and Special Charges
Wiley reported second quarter sales through October 31 on Wednesday morning, continuing the pattern from the first quarter of fiscal 2017. Sales of $425.6 million were down $7.8 million (or 2 percent) from a year ago, with a net loss of -$11.45 million (compared to a profit of $43.6 million a year ago). “Adjusted” net income — if you adjust out all of the bad things that actually happened during the quarter — rose slightly on a per share basis. Special charges included $48 million for losing on an unfavorable tax ruling in Germany; $6.8 million on their recurring restructuring […]