Peloton was a pandemic darling as people favoured their tread bikes to exercise during the lockdown in the US. But as society has reopened sales growth has stalled and yesterday’s preliminary Q2 figures (ending 31 Dec), showed revenue in line with estimates but is delaying an opening of a $400mn factory which was expected to meet demand and the delay and management talks about layoffs can only be viewed as signs that demand is coming off rapidly.
Siemens Gamesa shows how real inflation is
The world’s largest manufacturer of offshore wind turbines published FY22 Q1 (ending 31 Dec) earlier this morning which was grim reading for investors. Underlying operating profit was negative €309mn and the fiscal year guidance is now -4% to +1% on underlying EBIT margin which significantly below where consensus was looking for €206mn in EBIT which is an EBIT margin of a little more than 2%. The problems for the industry has persisted for more than a year which includes difficulties sourcing components, factory delays due to Covid-19, logistics nightmare, and generally rising input costs such as rising steel prices. Wind turbine manufacturers are raising prices to offset rising input costs but it has the negative consequence of reducing order intake creating a double whammy for investors. While the green transformation will continue to ensure high long-term growth for this industry the narrative is clearly negative in the short-term.
Earnings season shifts gear next week
Next week 177 companies report earnings out the around 2,500 companies we track during the earnings season. The list below shows the most important earnings releases measured against interesting themes to watch and those that can either move the overall market or an industry. The three most important earnings releases are from Microsoft (Tuesday), Tesla (Wednesday), and Apple (Thursday).
Monday: IBM, Philips, Halliburton
Tuesday: Coloplast, Atlas Copco, Ericsson, Microsoft, Johnson & Johnson, NextEra Energy, Texas Instruments, American Express, General Electric, 3M, Moderna,
Wednesday: Christian Dior, Nidec, FANUC, Lonza Group, Tesla, Abbott Laboratories, Intel, Boeing, Freeport-McMoRan, Southern Copper
Thursday: LVMH, STMicroelectronics, Sartorius, SAP, Deutsche Bank, Unicredit, Diageo, Apple, Visa, Mastercard, McDonald’s
Friday: Volvo, H&M, Givaudan , Chevron, Caterpillar, Colgate-Palmolive