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REV Group Q3 Net Profit More Plunges; Trims FY22 Sales Outlook

Kraft Heinz Affirms Full Year Guidance

The Kraft Heinz Company (KHC) said it continues to expect 2022 organic net sales growth in the high single digits versus the prior year period and adjusted EBITDA to be in the range of $5.8 billion to $6.0 billion. For the second half of 2022, the company now expects adjusted EBITDA to be split approximately 43% to 57% between the third quarter and the fourth quarter, versus a 45% to 55% split previously expected.

The company noted that its outlook now contemplates inflation for the full year of approximately 20%, up from the previous expectation for inflation to be in the high teens.

The company also outlined additional details on its long-term algorithm, which targets: organic net sales growth of 2% to 3%; adjusted EBITDA growth of 4% to 6%; and adjusted EPS growth of 6% to 8%. The company has updated its long-term net leverage target ratio from consistently below four times to approximately three times.

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Chicago Business Barometer Inches Slightly Higher In August

A report released by MNI Indicators on Wednesday showed its reading on Chicago-area business activity was little changed in the month of August.

MNI Indicators said its Chicago business barometer inched up to 52.2 in August from 52.1 in July, with a reading above 50 indicating growth. Economists had expected the business barometer to edge down to 52.0.

The slight uptick came after the Chicago business barometer dropped to its lowest level since August 2020 in the previous month.

The modest increase by the headline index came as the production index jumped to 54.9 in August from 48.2 in July, while the new orders index climbed to 48.9 from 44.5.

On the other hand, MNI Indicators said the employment index edged down to 54.6 in August from 56.1 in July, implying little change in the tightness of the labor market.

The supplier deliveries index also slid to 62.1 in August from 67.1 in July, with MNI Indicators noting stockpiling in the first quarter of the year likely exasperated delivery issues.

With regard to inflation, the prices paid index was nearly unchanged at 81.8 in August, suggesting price pressures remain acute.

G-III Apparel Q2 Adj. Profit Declines; Net Sales Up 25%

G-III Apparel Group, Ltd. (GIII) reported second-quarter non-GAAP net income per share of $0.39 compared to $0.41, last year. Net income for the second quarter was $36.3 million, or $0.74 per share, compared to $19.2 million, or $0.39 per share.

On average, seven analysts polled by Thomson Reuters expected the company to report profit per share of $0.47, for the quarter. Analysts’ estimates typically exclude special items.

Net sales increased 25% to $605.2 million from $483.1 million, last year. Analysts on average had estimated $594.78 million in revenue.

For fiscal 2023, the company expects net sales of approximately $3.15 billion. The company expects non-GAAP net income between $177.0 million and $182.0 million, or between $3.60 and $3.70 per share.

For the third quarter, the company expects net sales of approximately $1.07 billion. The company projects non-GAAP net income between $87.0 million and $92.0 million, or between $1.80 and $1.90 per share.

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Wesco Intl To Acquire Rahi Systems For $217 Mln; Lifts FY22 Adj. Earnings Growth Outlook

Wesco International (WCC) Wednesday announced a definitive agreement to acquire privately held global hyper-scale data center solutions provider Rahi Systems Holdings, Inc. for $217 million.

The company said the purchase price represents approximately 7.5x Rahi’s projected trailing 12 months adjusted EBITDA.

In a separate announcement, Wesco said reaffirmed the 2022 financial outlook and long-term growth view. The company now expects adjusted earnings per share of $15.60 to $16.40, or up 55 to 65 percent versus the prior year.

Earlier, the company was looking for fiscal 2022 adjusted earnings per share to grow double digits to between $11.00 to $12.00.

Wesco expects sales to increase by 16 to 18 percent, while the previous projection was a sales increase of 5 to 8 percent.

Wesco expects to achieve a ‘mid-single digit plus’ organic sales compound annual growth rate, with EBITDA and earnings per share growing at least twice the sales growth rate. The previous outlook for Adjusted EBITDA margin was the growth of 6.7 to 7.0 percent.

The Company plans to begin the cash dividend on its common stock of approximately $1.50 per share annually, payable quarterly starting in the first quarter of 2023.

REV Group Q3 Net Profit More Plunges; Trims FY22 Sales Outlook

REV Group, Inc. (REVG), a manufacturer of specialty vehicles, on Wednesday reported that net income for the third quarter plunged to $9.5 million or $0.16 per share from $23.7 million or $0.36 per share in the prior-year quarter.

Excluding items, adjusted net income for the quarter were $0.24 per share, compared to $0.37 per share in the prior-year quarter.

Net sales for the quarter edged up to $594.8 million from $593.3 million in the same quarter last year. The Street was looking for revenues of $592.62 million for the quarter.

Looking ahead to fiscal 2022, the company now projects net income in a range of $14 million to $25 million and adjusted net income in a range of $44 million to $54 million on net sales between $2.25 billion and $2.35 billion. The Street is looking for revenues of $2.34 billion for the quarter.

Previously, the company expected net income in the range of $14 million to $35 million and adjusted net income in the range of $43 million to $62 million on net sales between $2.25 billion and $2.40 billion.

The company’s board of directors also declared a quarterly cash dividend of $0.05 per share of common stock, payable on October 14, 2022, to shareholders of record on September 30, 2022.

For more earnings news, earnings calendar, and earnings for stocks, visit rttnews.com