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Tag: Expectations

  • OneWater (NASDAQ:ONEW) Misses Q2 Revenue Estimates, Stock Drops 14.6%

    OneWater (NASDAQ:ONEW) Misses Q2 Revenue Estimates, Stock Drops 14.6%

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    OneWater (NASDAQ:ONEW) Misses Q2 Revenue Estimates, Stock Drops 14.6%

    Boat and marine products retailer OneWater Marine (NASDAQ:ONEW) missed analysts’ expectations in Q2 CY2024, with revenue down 8.7% year on year to $542.4 million. It made a non-GAAP profit of $1.05 per share, down from its profit of $1.95 per share in the same quarter last year.

    Is now the time to buy OneWater? Find out in our full research report.

    OneWater (ONEW) Q2 CY2024 Highlights:

    • Revenue: $542.4 million vs analyst estimates of $611 million (11.2% miss)

    • EPS (non-GAAP): $1.05 vs analyst estimates of $2.17 (51.6% miss)

    • Gross Margin (GAAP): 24.4%, down from 26.8% in the same quarter last year

    • Locations: 98 at quarter end, down from 99.5 in the same quarter last year

    • Market Capitalization: $444.5 million

    “In the third quarter, our strategic inventory management and operational execution drove outperformance against the industry. However, our performance for the quarter was below our expectations due to a progressively weaker market environment and a negative impact from weather in Texas,” commented Austin Singleton, Chief Executive Officer at OneWater.

    A public company since early 2020, OneWater Marine (NASDAQ:ONEW) sells boats, yachts, and other marine products.

    Boat & Marine Retailer

    Retailers that sell boats and marine products sell products, sure, but they also sell an image and lifestyle to an often wealthier customer. Unlike a car–which many use daily to get to/from work and to run personal and family errands–a boat or yacht is certainly a discretionary, luxury, nice-to-have purchase. While there is online competition, especially for research and discovery, the boat and yacht market is still very brick-and-mortar based given the magnitude of the purchase and the logistical costs associated with moving these products over long distances.

    Sales Growth

    OneWater is a small retailer, which sometimes brings disadvantages compared to larger competitors that benefit from economies of scale. On the other hand, one advantage is that its growth rates can be higher because it’s growing off a small base.

    As you can see below, the company’s annualized revenue growth rate of 20.8% over the last five years was exceptional as it added more brick-and-mortar locations and increased sales at existing, established stores.

    OneWater Total RevenueOneWater Total Revenue

    OneWater Total Revenue

    This quarter, OneWater missed Wall Street’s estimates and reported a rather uninspiring 8.7% year-on-year revenue decline, generating $542.4 million in revenue. Looking ahead, Wall Street expects sales to grow 7.1% over the next 12 months, an acceleration from this quarter.

    When a company has more cash than it knows what to do with, buying back its own shares can make a lot of sense–as long as the price is right. Luckily, we’ve found one, a low-priced stock that is gushing free cash flow AND buying back shares. Click here to claim your Special Free Report on a fallen angel growth story that is already recovering from a setback.

    Key Takeaways from OneWater’s Q2 Results

    We struggled to find many strong positives in these results. Its revenue and EPS missed analysts’ expectations and its full-year earnings forecast fell short of Wall Street’s estimates. Overall, this quarter could have been better. The stock traded down 14.6% to $25.89 immediately after reporting.

    OneWater may have had a tough quarter, but does that actually create an opportunity to invest right now? When making that decision, it’s important to consider its valuation, business qualities, as well as what has happened in the latest quarter. We cover that in our actionable full research report which you can read here, it’s free.

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  • Alec Baldwin’s involuntary manslaughter trial begins with jury selection

    Alec Baldwin’s involuntary manslaughter trial begins with jury selection

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    Alec Baldwin’s trial in the shooting of a cinematographer begins Tuesday with the selection of jurors who will be tasked with deciding whether the actor is guilty of involuntary manslaughter.Getting chosen to serve in a trial of such a major star accused of such a major crime would be unusual even in Los Angeles or Baldwin’s hometown of New York. But it will be essentially an unheard-of experience for those who are picked as jurors in Santa Fe, New Mexico, though in recent years the state has increasingly become a hub of Hollywood production.Baldwin and his wife Hilaria arrived at the courthouse Tuesday with their youngest child, Ilaria Catalina Irena Baldwin. The couple have seven children, ranging in ages from 1 to 10.Baldwin, 66, could get up to 18 months in prison if jurors unanimously decide to convict him. The jurors are tasked with deciding whether Baldwin committed the felony when, during a rehearsal in October 2021, a revolver went off while he was pointing it at cinematographer Halyna Hutchins, killing her and wounding director Joel Souza. They were on the set of the Western film “Rust,” at Bonanza Creek Ranch some 18 miles from where the trial is being held.Baldwin has said the gun fired accidentally after he followed instructions to point it toward Hutchins, who was behind the camera. Unaware that the gun contained a live round, Baldwin said he pulled back the hammer — not the trigger — and it fired.The star of “30 Rock” and “The Hunt for Red October” made his first appearance in the courtroom on Monday, when Judge Mary Marlowe Sommer, in a significant victory for the defense, ruled at a pretrial hearing that Baldwin’s role as a co-producer on “Rust” isn’t relevant to the trial.On Tuesday, 79 people will be questioned and narrowed down. “It’s a process where both sides get to ask really specific questions of jurors,” John Day, a legal expert with sister station KOAT, said.He added, questions will come after some extensive research by both the prosecution and the defense.”Like, looked up their social media posts to see if they’ve said anything about this trial, or about guns in general, or Alec Baldwin in particular,” Day said.Candidates will also be grouped up in a 50-minute selection to ensure a faster process. Something that differed from Hannah Gutierrez-Reed’s trial. Twelve jurors and four alternates were selected in her case.”They were feeling pretty strongly that she had one job, and she didn’t do it,” Day said. “Her job was to make sure that there was no live ammunition on the set and that the guns didn’t have anything that was going to hurt someone.”That means finding the perfect juror will be key in a limited amount of time. “The ultimate juror is someone who can say, ‘I might know about the case, but I don’t have an opinion,’” Day said.However, certain ideas may be favored.For the prosecutions, the team will be looking closely at gun safety.”You’re going to want people on the jury who are familiar with gun safety issues, right?” Day said. “Who knows about gun safety, and who is going to be skeptical of somebody pointing a gun at someone without knowing what’s in it.”As for the defense, attorneys will closely look at movie set protocols.”You’re going to want people who would agree that a film is not like real life,” he said. “That if you’re an actor on a film set and someone hands you a gun and says it’s safe, there’s no reason to think otherwise.”But each side can only reject a certain number of potential jurors. “People that can kick off or they can say, ‘we’re not going to take that person for this reason,’” Day said. “It’s a process of narrowing down a large pool into a much smaller pool of jurors and alternates.”Jury selection will begin Tuesday morning at the Santa Fe County Courthouse. Opening statements are expected Wednesday.The Associated Press contributed to this report.

    Alec Baldwin’s trial in the shooting of a cinematographer begins Tuesday with the selection of jurors who will be tasked with deciding whether the actor is guilty of involuntary manslaughter.

    Getting chosen to serve in a trial of such a major star accused of such a major crime would be unusual even in Los Angeles or Baldwin’s hometown of New York. But it will be essentially an unheard-of experience for those who are picked as jurors in Santa Fe, New Mexico, though in recent years the state has increasingly become a hub of Hollywood production.

    Baldwin and his wife Hilaria arrived at the courthouse Tuesday with their youngest child, Ilaria Catalina Irena Baldwin. The couple have seven children, ranging in ages from 1 to 10.

    Baldwin, 66, could get up to 18 months in prison if jurors unanimously decide to convict him. The jurors are tasked with deciding whether Baldwin committed the felony when, during a rehearsal in October 2021, a revolver went off while he was pointing it at cinematographer Halyna Hutchins, killing her and wounding director Joel Souza. They were on the set of the Western film “Rust,” at Bonanza Creek Ranch some 18 miles from where the trial is being held.

    Baldwin has said the gun fired accidentally after he followed instructions to point it toward Hutchins, who was behind the camera. Unaware that the gun contained a live round, Baldwin said he pulled back the hammer — not the trigger — and it fired.

    The star of “30 Rock” and “The Hunt for Red October” made his first appearance in the courtroom on Monday, when Judge Mary Marlowe Sommer, in a significant victory for the defense, ruled at a pretrial hearing that Baldwin’s role as a co-producer on “Rust” isn’t relevant to the trial.

    On Tuesday, 79 people will be questioned and narrowed down.

    “It’s a process where both sides get to ask really specific questions of jurors,” John Day, a legal expert with sister station KOAT, said.

    He added, questions will come after some extensive research by both the prosecution and the defense.

    “Like, [they may have] looked up their social media posts to see if they’ve said anything about this trial, or about guns in general, or Alec Baldwin in particular,” Day said.

    Candidates will also be grouped up in a 50-minute selection to ensure a faster process.

    Something that differed from Hannah Gutierrez-Reed’s trial. Twelve jurors and four alternates were selected in her case.

    “They were feeling pretty strongly that she had one job, and she didn’t do it,” Day said. “Her job was to make sure that there was no live ammunition on the set and that the guns didn’t have anything that was going to hurt someone.”

    That means finding the perfect juror will be key in a limited amount of time.

    “The ultimate juror is someone who can say, ‘I might know about the case, but I don’t have an opinion,’” Day said.

    However, certain ideas may be favored.

    For the prosecutions, the team will be looking closely at gun safety.

    “You’re going to want people on the jury who are familiar with gun safety issues, right?” Day said. “Who knows about gun safety, and who is going to be skeptical of somebody pointing a gun at someone without knowing what’s in it.”

    As for the defense, attorneys will closely look at movie set protocols.

    “You’re going to want people who would agree that a film is not like real life,” he said. “That if you’re an actor on a film set and someone hands you a gun and says it’s safe, there’s no reason to think otherwise.”

    But each side can only reject a certain number of potential jurors.

    “People that [the teams] can kick off or [that] they can say, ‘we’re not going to take that person for this reason,’” Day said. “It’s a process of narrowing down a large pool into a much smaller pool of jurors and alternates.”

    Jury selection will begin Tuesday morning at the Santa Fe County Courthouse. Opening statements are expected Wednesday.

    The Associated Press contributed to this report.

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  • Consumer sentiment jumps in early December for the first increase in five months

    Consumer sentiment jumps in early December for the first increase in five months

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    This is a developing story. Stay tuned for updates here.

    The numbers: The University of Michigan’s gauge of consumer sentiment rose to a preliminary December reading of 69.4 from a six-month low of 61.3 in the prior month. This is the highest level since August.

    Economists polled by the Wall Street Journal had expected a December reading of 62.4.

    Expectations of inflation cooled in early December, according to the report.

    Americans think inflation will average a 3.1% rate over the next year, down from 4.5% in the prior month. That’s the lowest level since March 2021.

    Expectations for inflation over the next five years fell to 2.8% from 3.2% in November, which was the highest reading in over a decade.

    Key details: According to the report, a gauge of consumers’ views on current conditions jumped to 74 in December from 68.3 in the prior month, while a barometer of their expectations of the future rose to 66.4 from 56.8.

    Big picture: A lot of factors were behind the increase in confidence, with the solid job market and declining gasoline prices mentioned most often by economists. Stock prices have also been strong. Despite the gains, sentiment is still well below prepandemic levels.

    Market reaction: Stocks
    DJIA

    SPX
    were higher in early trading on Friday, while the 10-year Treasury yield
    BX:TMUBMUSD10Y
    rose to 4.21% after the solid job report was released earlier in the morning.

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  • Why Employers and Employees Aren’t Agreeing on Expectations | Entrepreneur

    Why Employers and Employees Aren’t Agreeing on Expectations | Entrepreneur

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    Opinions expressed by Entrepreneur contributors are their own.

    In just seven years, we will face a global worker shortage of 85 million people, according to the 2023 Workforce Trends ManPower Group report. That means there will be major shifts in the power balance between employees and employers. Traditional employers with a command and control leadership style will have less power as power shifts more to employees.

    With increased power over employees, expectations are shifting. Consider these statistics:

    • 31% of current workers would take another role in the next month if it offered a better blend of work and lifestyle.
    • 68% of Gen Z workers are not satisfied with their organization’s progress in creating a diverse and inclusive work environment and 56% would not accept a role without diverse leadership.
    • More workers think that the ability to collaborate (83%), solve problems (82%) and be trustworthy (82%) are more important to do their job well than simply being a high producer (76%).
    • 57% of employees are already pursuing training outside of work, because company training programs don’t teach them relevant skills.
    • 75% of investors say companies should address ESG (environmental, social and governance) issues, even if doing so reduces short-term profitability (diversity, equity and inclusion fit in the “S”).

    To address these growing macro trends, organizations need to:

    • Model and reinforce workplace flexibility — especially senior leadership).
    • Objectively measure employee performance (a.k.a. behaviors + results).
    • Proactively address ESG social issues before it is mandated.

    Related: How to Balance Employee Happiness and Business Expectations

    1. Model and reinforce workplace flexibility — especially senior leadership

    Considering nearly one-third of workers would leave their roles immediately for better work-life integration, this signals a growing expectation for authentic flexibility. No longer a nice to have, it is a must-have for workers. More traditional cultures have been slow to change, expecting employees to return post-pandemic to the status quo. Rather than retreat to past notions of workplace expectations, this is an opportunity to shift to meet shifting employee expectations. People are looking to leaders to not just say flexibility is important but to model it through their own actions. As leaders work remotely and take time off, employees feel safer doing so as well.

    Here are some unconventional ways leadership can promote flexibility (Note: For front-line workers, virtual work may not be a possibility and flexibility can be more constrained):

    • Host a workplace offsite at a remote location where employees can bring their families, mixing work and life in a relaxed environment.
    • Set expectations for in-person days in the office environment. Consider maybe one or two designated days per week that your employees are expected to be physically present, and working from home the remainder of the days.
    • Be clear about holiday observances cross-culturally. Be cognizant of holiday celebrations and out-of-office obligations.
    • Talk to team members about their travel interests or family visits, encouraging them to work from other locations if they can and want to during less busy times.

    2. Objectively measure employee performance (behaviors + results)

    Subjective criteria invite bias into the performance management process. More often, inclusive behavior is just as important as the ability to get results. If your employees are getting results with exclusionary behavior, they need to be held accountable for these behaviors as well — trust, collaboration and problem-solving skills. Increasingly, toxic workplace behavior is a key reason for employees self-selecting out organizations. If you tolerate toxic behavior because the person is getting results, it’s the same as saying toxic workplace behavior is acceptable.

    Consider adding competencies to the performance management process to ensure people are not only getting the results but they’re being held accountable for their behavior. Competencies like communication, leadership, empathy and vulnerability are highly correlated with healthy workplace cultures. What gets measured and gets done. When people are held accountable for their behavior, the culture shifts.

    Related: Employees Only Meet Expectations When They Know What’s Expected

    3. Proactively address ESG social issues — before it’s mandated

    Europe’s expected mandate of ESG reporting will affect any organization that does business in Europe. Rather than having to react once enacted, it’s important to proactively prepare. Because diversity, equity and inclusion (DEI) are a part of the social component of ESG, organizations will be expected to report on DEI activities and representation numbers. Investors, customers and employees alike are asking how organizations are contributing to positive social change. As the power continues to shift to employees, expect this question to be asked more often, realizing future consumers and employees are voting with their dollars and employment decisions. People want to work with organizations that are creating social good.

    Case study

    A Fortune 25 client of ours in the financial services industry realized this shift in employee power. Instead of maintaining the status quo, they decided to develop a program that responded to changing employee needs. They built a nine-month Men as Allies program with a curriculum to support learning on flexibility, inclusive leadership skills and how to effectively mentor and sponsor people different from themselves. The result was a boost in year-over-year membership growth of 30% for women and 40% for men as allies. Promotion rates and retention for women in the program increased as well.

    With a growing disconnect in workplace expectations, it’s important that organizations realize that the workplace needs to change, not the employees. By modeling flexibility, measuring employee performance and anticipating ESG expectations, we can meet employees where they are and create more inclusive workplaces where all people feel seen, heard and feel like they belong.

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    Julie Kratz

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