Atlantic Capital Bank beats profit forecasts
Atlantic Capital Bancshares Inc., the parent company of the Atlanta-based bank that acquired the former FSG Bank in Chattanooga, earned $5 million, or 19 cents per share, in the first quarter, compared to a loss of $15.3 million, or 60 cents per share, in the fourth quarter of 2017.
The results topped Wall Street expectations. The average estimate of three analysts surveyed by Zacks Investment Research was for earnings of 17 cents per share.
The bank holding company posted revenue of $30.1 million in the period. Its adjusted revenue was $25.6 million, also exceeding Street forecasts. Three analysts surveyed by Zacks expected $25 million.
“These improved results reflect solid growth in our core corporate and business banking activities, higher loan yields, and the benefit of our cost reduction initiatives undertaken in prior quarters,” said Douglas Williams, president and chief executive officer. “We anticipate continued improvement in operating results throughout 2018 and into next year.”
Atlantic Capital Bancshares shares have increased nearly 9 percent since the beginning of the year.
Jeffrey Lorberbaum, CEO of Mohawk Industries, speaks to the Chattanooga Rotary Club Thursday, Nov. 6, 2014.Mohawk up 11 percent in quarter
The world’s biggest floorcovering manufacturer expects to roll out another year of higher profits with improved carpet and hardwood flooring sales and lower taxes in 2018.
Mohawk Industries Inc. said Thursday its adjusted first quarter earnings were up 11 percent over a year ago and Mohawk CEO Jeff Lorberbaum said he expects profits in the current quarter will be up from 5 to 7 percent from last year.
In the first three months of 2018, Mohawk earned adjusted net income of $225 million, or $3.01 per share, on sales of $2.4 billion. In the same period a year ago, Mohawk earned $201 million, or $2.68 per share, on sales of $2.2 billion.
“Mohawk is benefiting from its diverse geographical footprint and product portfolio,” Lorberbaum said. “Our performance in the first quarter accentuated this strength as we realized significant growth in LVT (luxury vinyl tile) in our largest markets and sales and profits grew strongly in our ceramic business outside the U.S.”
Mohawk earnings are being squeezed this year by the higher startup costs of new facilities, the loss of income from expired patents and higher material and freight costs. But the company’s effective tax rate is falling from 26 percent to 21 percent and the company is both increasing sales and prices for many of its products.
“We are initiating selective pricing actions by product and region that, combined with improving mix and cost reductions, will offset expected inflation,” Lorberbaum said.
Amazon’s profit doubles in quarter
Amazon got off to a roaring start in 2018, posting a profit during the first three months of the year that easy surpassed analysts’ expectations.
The Seattle retail giant on Thursday reported a profit of $3.27 a share during the three months ended in March, from $1.48 a share a year ago ago. Sales, including more than $4 billion contributed by Whole Foods Market stores that Amazon didn’t own a year ago, surged 42 percent, to $51 billion.
Analysts had anticipated a profit of $1.25 a share, and revenue of $49.9 billion, according to S&P Global Market Intelligence.
Amazon, famous for posting slim profits as it invests in the expansion of new and existing businesses, posted net income of $1.6 billion, just shy of the $1.9 billion haul taken in during the 2017 holiday shopping season. It had a year-earlier profit of $724 million.
Sales by Amazon Web Services, the company’s fast-growing unit that rents software and computing infrastructure to businesses, climbed 49 percent from a year earlier.
UPS quarter shows 15 percent profit gain
More deliveries and higher revenue per package boosted first-quarter profit at UPS, but the company was hampered by rising costs as it upgrades its network to keep up with online shopping.
United Parcel Service Inc. said Thursday that it earned $1.35 billion in the quarter, up 15 percent from a year earlier.
The results topped analysts’ forecasts, and the shares rose in midday trading.
Revenue grew by 10 percent, with double-digit gains in the Atlanta company’s international and freight businesses and a smaller pickup in the core U.S. package-delivery unit.
Operating profit fell, however, in the domestic-package business, which UPS blamed on bad weather, the startup of Saturday service, and investments in new facilities and automation to help meet the growing demand for delivery of online purchases by consumers.
CEO David Abney said in an interview that those investments will eventually pay off, but “you put the cost in before you get the benefit.”
“The underlying business performed as expected,” he said. “We were not disappointed in the U.S. operation.”
GM profits off by 60 percent
General Motors’ first-quarter net income fell 60 percent from a year ago, and its shares fell even though the numbers beat Wall Street estimates.
The Detroit automaker says it made just over $1 billion from January through March, or 77 cents per share. A year ago the company made $2.6 billion, or $1.70 per share.
GM says earnings and revenue fell because shipments to dealers dropped as factories were closed to retool for new full-size pickup trucks. But sales from dealers to buyers in the U.S., GM’s most profitable market, rose 3.8 percent driven by SUVs.
GM had warned that earnings would be slower in the first and fourth quarters of the year, but the company said it is still on track to reach annual pretax earnings of around $6.50 per share.
Excluding one-time costs such as restructuring in South Korea, the company made $1.43 per share. Analysts polled by FactSet expected $1.24. Revenue fell 3 percent to $36.1 billion. Analysts predicted $34.5 billion.
In North America the company made $2.2 billion before taxes for an 8 percent profit margin. The company’s joint venture in China made a record $600 million.
GM said all of its business units were profitable for the quarter.
Microsoft’s Cloud aids earnings gain
Microsoft, more than any other traditional software company, has swiftly and profitably made the shift to delivering software as an internet service.
The technology giant reinforced how well it has made that transition on Thursday, when it reported strong gains in both profits and sales in its fiscal third quarter, led by the rapid growth of its cloud software business.
The company’s net income rose 35 percent from a year earlier, to $7.4 billion. Revenue rose 16 percent to $26.8 billion in the quarter, exceeding the Wall Street consensus forecast of nearly $25.8 billion.
Microsoft’s earnings per share increased 36 percent to 95 cents a share, well above the analysts’ average estimate of 85 cents a share, compiled by Thomson Reuters.
Since Satya Nadella became chief executive in 2014, the cloud portion of Microsoft’s revenue has soared from 3 percent to more than 21 percent this year, according to estimates by Credit Suisse.