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 Shares of Spirit AeroSystems Holdings Inc. dropped 4.3% after the commercial and defense aircraft structures supplier, which receives the bulk of its revenue from Boeing Co. , reported a much wider-than-expected loss as revenue fell well below expectations, citing the "dual challenges" of the 737 MAX grounding and the COVID-19 pandemic. The company swung to a net loss of $256 million, or $2.46 a share, from net income of $168 million, or $1.61 a share, in the year-ago period. Excluding non-recurring items, the adjusted loss per share was $2.28, wider than the FactSet loss consensus of $1.25. Revenue sank 68% to $644.6 million, below the FactSet consensus of $830.2 million, as revenue of all three business segments declined more than forecast. Deliveries decreased to 159 shipsets during the quarter from 449 shipsets a year ago, including Boeing 737 MAX shipsets of 19 compared with 147 shipsets last year. For the third quarter, Spirit expects to record forward losses of $25 million to $35 million on Boeing's 787 program and losses of $13 million to $20 million on Airbus SE's A350 program. Spirit's stock has plunged 73.3% year to date through Monday, while Boeing shares have shed 50.2% and the Dow Jones Industrial Average has slipped 6.6%.
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Arconic Corp. swung to a wider-than-expected loss in the second quarter and revenue missed estimates, as the coronavirus pandemic hurt the car, aerospace, industrial and construction markets that it serves. The Pittsburgh, Pa.-based maker of aluminum used in cars and planes said it had a loss of $92 million, or 84 cents a share, in the quarter, after income of $5 million, or 4 cents a share, in the year-earlier period. Sales slumped to $1.187 billion from $1,923 billion. The FactSet consensus was for a loss of 16 cents a share, and sales of $1.283 billion. The net loss includes $76 million of after-tax special items primarily related to a non-cash charge to annuitize U.K. pension obligations, debt issuance costs, plant closure costs, and a previously announced restructuring. Arconic started operating as a stand-alone company on April 1, "when sudden declines in critical end markets due to the COVID-19 pandemic shut down many of its customers' production facilities around the world," it said in a statement. The company took $200 million of cash conservation measures in April and has since increased that target to $250 million. Shares were not active premarket, but have gained 30% in the month to date, while the S&P 500 has gained 5%.
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Ralph Lauren Inc. stock fell 4.6% in Tuesday premarket trading after the luxury lifestyle brand reported fiscal first-quarter revenue that missed expectations. Net losses totaled $127.7 million, or $1.75 per share, after net income of $117.1 million, or $1.47 per share, in 2019. Adjusted losses of $1.82 per share were wider than the $1.75 per share loss FactSet forecast. Revenue of $487.5 million dropped from $1.43 billion last year and were below the $600.0 million FactSet consensus. The majority of Ralph Lauren are open in North America, Europe and Asia, with stores in key markets closed eight-to-10 weeks during the quarter. Digital comp sales grew 13%. Ralph Lauren did not give guidance due to coronavirus-related uncertainty. Ralph Lauren shares are down 40.5% for the year to date while the S&P 500 index is up 2% for the period.
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The global tally for confirmed cases of the coronavirus that causes COVID-19 climbed above 18.3 million on Tuesday, according to data aggregated by Johns Hopkins University, and the death toll rose to 694,406. At least 10.9 million people have recovered. The U.S. case tally climbed to 4.72 million and the death toll rose to 155,471. Hurricane Isaias has made landfall in North Carolina, which is already grappling with the pandemic. At least 602 new deaths and 47,832 new cases were counted in the U.S. on Monday, according to the New York Times. Brazil is second to the U.S. with 2.8 million cases and 94,665 deaths. India is third measured by cases at 1.9 million, followed by Russia with 859,762 and South Africa with 516,862. Mexico has 443,813 cases and 48,012 deaths, the third highest in the world. The U.K. has 307,251 cases and 46,295 fatalities, the highest in Europe and fourth highest in the world. China, where the illness was first reported late last year, has 88,099 cases, and 4,672 fatalities.|
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Shares of Eastman Kodak Co. tumbled 24% in afternoon trading Monday, putting them on track for a third-straight double-digit percentage decline, after the digital printing and film company, which is getting into the pharmaceuticals ingredients business, disclosed that holders of convertible notes were exercising their right to convert notes into common stock. The stock has now dropped 50% since skyrocketing 16-fold in three days to $33.20 on July 29, after the Trump administration announced on July 28 that Kodak received a $765 million loan, as part of a Defense Production Act directive to loosen the reliance on foreign sources for pharmaceutical ingredients. In an 8-K filing with the Securities and Exchange Commission on Monday, Kodak said the holders of the 5.00% convertible notes due 2021, which were issued in May 2019, are converted a total of $95 million of the notes into 29.9 million shares of Kodak common stock, on July 29. That would imply a value of $3.175 per converted share, while the stock was currently trading at $16.58. On July 27, Kodak granted Chief Executive James Continenza options to buy Kodak stock at various strike prices, which are now all in the money, to "protect" him from dilution of his share holdings, in case the convertible debt issued in May 2019 were converted into stock. Kodak's stock has now rallied nearly fourfold (up 256.6%) year to date, while the S&P 500 has gained 2.0%.
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Facebook Inc. plans to lease the Farley Building, a centerpiece of a large New York City project in the works from Vornado Realty Trust , the companies announced Monday afternoon, sending Vornado shares higher in after-hours trading. Facebook is taking all of the available office space, about 730,000 square feet, in the Farley Building, which stretches between 31st and 33rd streets and 8th and 9th avenues in Manhattan. Vornado described Farley as the "cornerstone" of its Penn District project, for which it has 10 million square feet of space and allocated $2 billion to develop the area near Penn Station and Madison Square Garden. "The Farley Building will further anchor our New York footprint and create a dedicated hub for our tech and engineering teams," Robert Cookson, a Facebook vice president for real estate and facilities, said in the news release. "We look forward to being a part of this iconic New York City landmark's future for years to come." Vornado shares jumped more than 7% in after-hours trading after the announcement was made. The stock has suffered amid doubts about commercial real estate in the era of COVID-19, falling 48.8% so far this year.
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Shares of Nio Inc. spiked up 14.2% in afternoon trading Monday, after the China-based electric vehicle maker and Tesla Inc. rival reported upbeat July deliveries data. Nio said it delivered 3,533 vehicles in July, up more than fourfold (up 322.1%) from a year ago, including 2,610 of its ES6 5-seater SUV and 923 6-and-7 seater ES8 SUVs. "In July, we are pleased to have achieved the second-highest monthly delivery results despite the impact on productions due to a 5-day suspension of manufacturing to prepare for EC6 productions and other flood-related supply chain challenges," said Chief Executive William Bin Li. That helped boost other EV makers, with Tesla's stock surging 3.6% and Nikola Corp. shares running up 17.1%. Nikola is scheduled to report second-quarter results after Tuesday's closing bell. Separately, Electric truck maker Lordstown Motors Co. will become public, after agreeing to be acquired by blank-check company DiamondPeak Holdings Corp. , which saw its stock soar 15.4% on the news. The rally in EV maker shares comes as the S&P 500 gained 0.8%.
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