In a recent article, the author stated that the "Amazon tax", which�Amazon (NSDQ:AMZN)�may be forced to collect in all 50 states will reduce Amazon's pricing advantage. This is because, currently, online retailers like Amazon are not required to collect sales taxes in states where they do not have physical stores. Thus, this tax will increase the number of states where Amazon collects taxes, from 23 states to all 50 states. Amazon would have to transfer some of this cost to consumers and thereby increasing prices. Will the�"Amazon tax" happen then? Here's how this may impact AMZN stock.
The "Amazon tax": The unemployment rate, mobile e-commerce�& laziness
The above-quoted article also points to a report by Amazon CEO Jeff Bezos owned Washington Post. The report estimates that the "Amazon tax" might cut spending on Amazon.com by as much as 12% upon implementation.
Best Dow Dividend Companies To Own For 2017: Profire Energy, Inc.(PFIE)
Advisors' Opinion: - [By Monica Gerson]
Profire Energy, Inc. (NASDAQ: PFIE) is estimated to post its quarterly earnings at $0.00 per share on revenue of $6.74 million.
Posted-In: Earnings scheduleEarnings News Pre-Market Outlook Markets
Best Dow Dividend Companies To Own For 2017: Permian Basin Royalty Trust(PBT)
Advisors' Opinion: Best Dow Dividend Companies To Own For 2017: Oxford Industries Inc.(OXM)
Advisors' Opinion: - [By Mike Deane]
After the bell on Tuesday, Oxford Industries (OXM) announced its second quarter earnings, posting a 14% increase in net sales from last year’s same quarter.
The Atlanta, GA-based apparel company announced second quarter consolidated net sales of $235 million, which were up from last year’s Q2 figure of $206.9 million. The company’s EPS, on an adjusted basis, came in at $1.01, a 55% increase from last year’s 65 cents.
Oxford Industries beat analysts’ Q2 EPS estimates of 98 cents, but missed the analyst revenue consensus of $243.5 million.
Looking forward to full-year 2013, Oxford Industries lowered its EPS guidance to a range of $2.90 to $3.05. This comes in below the analysts’ consensus of $3.12.
OXM shares were up 86 cents, or 1.33%, at the end of trading on Tuesday. YTD the stock is up more than 40%.
- [By Ben Levisohn]
Not investors in Restoration Hardware (RH). Its shares have dropped 2% in after-hours trading after it reported a profit of 49 cents a share, above forecasts for 43 cents, but offered mixed guidance. Oxford Industries (OXM) is off 7.3% at $60 after it announced a profit of $1.01, ahead of 98 cents consensus forecasts, but lowered its 2013 guidance. Shares of SunEdison (SUNE) have dropped 5.4% to $7.90 after it announced a secondary offering.
- [By Roberto Pedone]
One potential earnings short-squeeze candidate is men's apparel products player Oxford Industries (OXM), which is set to release numbers Tuesday after the market close. Wall Street analysts, on average, expect Oxford Industries to report revenue of $243.48 million on earnings of 98 cents per share.
If this company can manage to beat or meet Wall Street's earnings estimates this quarter, then it would mark the biggest quarterly gain in the last six quarter.
The current short interest as a percentage of the float for Oxford Industries is not able at 5.7%. That means that out of the 14.31 million shares in the tradable float, 817,000 shares are sold short by the bears. The bears have also been increasing their bets from the last reporting period by 3.8%, or by about 29,000 shares. If the bears are caught being too aggressive into a solid quarter, then shares of OXM could soar higher post-earnings as the bears rush to cover some of their bets.
From a technical perspective, OXM is currently trending above its 200-day moving average and just below its 50-day moving average, which is neutral trendwise. This stock recently sold off hard from its August high of $69.29 to its low of $61.10 with higher-than-average volume flows. Shares of OXM have now started to rebound a bit off that low of $61.10 with strong upside volume flows. That move is quickly pushing shares of OXM within range of triggering a near-term breakout trade.
If you're bullish on OXM, then I would wait until after its report and look for long-biased trades if this stock manages to break out above its 50-day moving average at $65.77 a share to more resistance at $65.93 a share with high volume. Look for volume on that move that hits near or above its three-month average action of 103,286 shares. If that breakout triggers, then OXM will set up to re-test or possibly take out its 52-week high at $69.28 a share. Any high-volume move above that level will then give OXM a chance t
Best Dow Dividend Companies To Own For 2017: Hatteras Financial Corp(HTS)
Advisors' Opinion: Best Dow Dividend Companies To Own For 2017: Chipotle Mexican Grill Inc.(CMG)
Advisors' Opinion: - [By Ben Levisohn]
Shares of Chipotle Mexican Grill (CMG) have tumbled nearly 4% in after-hours trading after the food-safety-challenged restaurant chain said its first-quarter loss would be much larger than investors had expected.
Reuters In an SEC filing, Chipotle said it would lose a dollar per share, well below analyst forecasts for three cents. Chipotle also said it would “will incur higher expenses driven by increased marketing and promotions spend,” while same-store sales would fall “just” 26.1% in February, better than the 36.4% decline in January. Profit margins for the first quarter are expected to come in “in the mid-single digit range,” according to the filing.
But look at the bright side. Chipotle hired a food-safety expert, who just so happens to be the father of actor James Marsden. Yipee.
Shares of Chipotle Mexican Grill have dropped 3.8% to $484 at 4:50 p.m. in after-hours trading.
- [By Johanna Bennett] Getty Images
Shares of Chipotle Mexican Grill (CMG) fell 1.2% in after-hours market action after the troubled restaurant chain posted disappointing second-quarter financial results.
The Street did not have grand expectations for the quarter. Chipotle is struggling to recover from last year��s string of E. coli and salmonella outbreaks. Six months have passed since the last reported food safety incident, and according to a recent Morgan Stanley survey, approximately 25% of the chain��s customers have stopped going or reduced the frequency of their visits.
At 87 cents per share, earnings missed consensus estimates by three cents, while revenue fell 16.6% from last year to $998.4 million, according to data from Briefing.com. The Street had expected the company to earn 90 cents a share on revenue of $1.04 billion.
Same-store sales fell 23.6% during the quarter, against the 20.5% decline expected by the Street. Comparable sales rose 4.5% during the same span last year.
At $413.12, Chipotle remains well below the 52-week high $758.61 it hit last summer, before the first E. coli outbreak.
Investors have been waiting for the stock to find a bottom. Earlier this week, CLSA analyst Jeremy Scott argued that the risk/reward favors the bulls. He explains why:
Our $460 target price (unchanged) is based on a 30x FY18CL EPS, discounted at 8% (effective 28x multiple). We view FY18 as a more normalized operating environment. While our concerns over restaurant margins and store growth haven��t changed, over the next 12 months, we believe traffic recovery is the headline that matters. We think Chiptopia and Chorizo are the key catalysts.
- [By Ben Levisohn]
Shares of Chipotle Mexican Grill�(CMG) are tumbling in after-hours trading after the burrito purveyor beat earnings forecasts but disclosed that it was on the receiving end of a Justice Department subpoena.
Victor J. Blue/Bloomberg News Chipotle reported a fourth-quarter profit of�$2.17 a share, beating forecasts for $1.86 a share, on sales of $997.5 million, missing forecasts for $1.008 billion. The company said same-store sales dropped 14.6%, while profit margins fell to�19.6%, down from 26.6%. In the company’s press release, Chipotle founder Steve Ells�called the fourth quarter “the most challenging period in Chipotle��s history.”
It’s not gong to get much better. “2016 will be a very difficult year relative to our past performance,” co-CEO Monty Moran said in the same press release. Among the reasons why: The U.S. Attorney��s office for the Central District of California�served Chipotle with a subpoena “broadening the scope of the previously-announced criminal investigation.”
Shares of Chipotle Mexican Grill have tumbled 8.5% to $435.05 at $6:17 p.m. today.
UPDATE:�S&P Capital IQ’s Tuna Amobi�calls Chipotle’s shares “unattractive.” He explains why:
With easing health concerns after CDC’s investigation of E.coli cases at CMG’s restaurants, and despite a related criminal probe, we raise our 12-month target price by $40 to $440. With an impliedly steep premium P/E of 34.4X our ’16 estimate, below historic average but well above 18% long-term EPS growth, we still view Chipotle Mexican Grill as unattractive. With expense deleverage, we cut our ’16 EPS estimate by $1.28 to $12.78 and set ’17′s at $16.55. Q4 EPS of $2.17 vs. $3.84, was $0.19 above our estimate. Q4 revenues fell 7% on 15% decline in comp sales, as margins shed 600 basis points.
- [By Ben Levisohn]
Deutsche Bank’s Brett Levy argues that even if Chipotle Mexican Grill (CMG) can return to the kind of growth it had before its health scandals, competitive and operational pressures will keep its valuation lower than at its peak. He explains why:
Over the last year, Chipotle has seen its operations and share price move from high-teen SSS gains and over $750, respectively, to SSS declining as much as -40%, a ~$26 million loss in 1Q16 and its share dipping to ~$400. The story has had uncertainty in recent quarters, but neither Bulls nor Bears appear convinced on sales trends or the share price’s next move….We continue to believe competitive, operational and valuation concerns persist and remain “Bearish” with a Sell rating, newly lowered EPS estimates and $340 PT.
Competitive: It may not be smooth sailing to get guests back. Chipotle��s AUVs topped ~$2.5 million last year, but have since experienced a dramatic sales decline (an estimated annualized ~$350k per unit loss), creating an opportunity for food service operators to battle for these lost share dollars. Some of these customers may be lost for good, but in the battles to regain other guests, we believe additional issues may weigh on Chipotle��s prospects (even as these returning guests reintroduce Chipotle into their ��rotation��, we believe they will share visits with other acceptable options).
Operational: Margin pressure may persist on increased unit/corp. investments At its peaks, Chipotle��s restaurant-level margins of over 27% created one of the most impressive unit economics stories across the restaurant landscape. However, the uncertainty surrounding last year��s incident leads us to question the company��s future margin potential. Despite management��s expectations for a potential return to the mid-20s percentage margins (including ~200bps of food/safety related costs), we are less certain of this point…
Valuation: What is a fair
- [By Ben Levisohn]
Citigroup went full bull on Newmont Mining (NEM) and Barrick Gold (ABX), while Stifel offered more evidence that Chipotle Mexican Grill (CMG) should be trading at about half its closing price of $402.64.
Best Dow Dividend Companies To Own For 2017: Cara Therapeutics, Inc.(CARA)
Advisors' Opinion:
