OIS – Oil States International (OIS) Reports Q1 Loss, Misses Revenue Estimates

Oil States International (OIS Free Report) came out with a quarterly loss of $0.26 per share versus the Zacks Consensus Estimate of a loss of $0.30. This compares to loss of $0.14 per share a year ago. These figures are adjusted for non-recurring items.

This quarterly report represents an earnings surprise of 13.33%. A quarter ago, it was expected that this energy services company would post a loss of $0.27 per share when it actually produced a loss of $0.21, delivering a surprise of 22.22%.

Over the last four quarters, the company has surpassed consensus EPS estimates four times.

Oil States International, which belongs to the Zacks Oil and Gas – Mechanical and and Equipment industry, posted revenues of $125.59 million for the quarter ended March 2021, missing the Zacks Consensus Estimate by 10.40%. This compares to year-ago revenues of $219.69 million. The company has not been able to beat consensus revenue estimates over the last four quarters.

The sustainability of the stock’s immediate price movement based on the recently-released numbers and future earnings expectations will mostly depend on management’s commentary on the earnings call.

Oil States International shares have added about 11.8% since the beginning of the year versus the S&P 500’s gain of 11.5%.

What’s Next for Oil States International?

While Oil States International has outperformed the market so far this year, the question that comes to investors’ minds is: what’s next for the stock?

There are no easy answers to this key question, but one reliable measure that can help investors address this is the company’s earnings outlook. Not only does this include current consensus earnings expectations for the coming quarter(s), but also how these expectations have changed lately.

Empirical research shows a strong correlation between near-term stock movements and trends in earnings estimate revisions. Investors can track such revisions by themselves or rely on a tried-and-tested rating tool like the Zacks Rank, which has an impressive track record of harnessing the power of earnings estimate revisions.

Ahead of this earnings release, the estimate revisions trend for Oil States International was mixed. While the magnitude and direction of estimate revisions could change following the company’s just-released earnings report, the current status translates into a Zacks Rank #3 (Hold) for the stock. So, the shares are expected to perform in line with the market in the near future. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

It will be interesting to see how estimates for the coming quarters and current fiscal year change in the days ahead. The current consensus EPS estimate is -$0.22 on $152.56 million in revenues for the coming quarter and -$0.82 on $626.33 million in revenues for the current fiscal year.

Investors should be mindful of the fact that the outlook for the industry can have a material impact on the performance of the stock as well. In terms of the Zacks Industry Rank, Oil and Gas – Mechanical and and Equipment is currently in the bottom 12% of the 250 plus Zacks industries. Our research shows that the top 50% of the Zacks-ranked industries outperform the bottom 50% by a factor of more than 2 to 1.

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SQ – Cathie Wood's ARK Invest Sells Over 280,000 Shares of Square

A couple of the ARK exchange-traded funds run by ETF star Cathie Wood made a huge sell on Wednesday. Accordingly these funds sold nearly 280,000 shares of Square Inc. (NASDAQ: SQ) shares on Wednesday, as the price of these ETFs dropped less than 1% in the session. Note that this ETF is still up over 100% in the last year.

ARK Innovation ETF (NYSEARCA: ARKK) sold 185,396 shares of Square, and ARK Next Generation Internet ETF (NYSEARCA: ARKW) sold 94,679 shares. At Wednesday’s closing price this would have valued this sale at roughly $71.2 million. Even though this is a small fraction of the total holdings, every little bit counts. ARKK is up 136% in the last year and ARKW is up 148%.
24/7 Wall St. recently reported on Square:

Square Inc. (NYSE: SQ) comes in at number two on Cathie Wood’s list. ARK Invest holds 10.26 million shares valued up to $2.68 billion. ARKK holds 6.66 million shares, ARKF holds 1.89 million shares and ARKW holds 1.71 million shares.
Square stock recently traded near $269, with a consensus price target of $267.86. The 52-week trading range is $56.63 to $283.19.

Catherine Wood, the CEO and CIO of ARK Investment Management LLC is a minority and non-voting shareholder of 24/7 Wall St., LLC, owner of 247wallst.com.

AMZN – Amazon plans to raise wages for 500,000 workers

In light of a current effort to hire for tens of thousands of jobs across its customer, fulfillment, delivery, package sortation and fulfillment, Amazon (AMZN) moved up its annual fall pay review for those teams and plans to roll out pay increases starting in mid-May, Amazon executive Darcie Henry said in a blog post Wednesday. It will increase hourly pay by between $0.50 and $3, a total investment of more than $1 billion. “This is on top of our already industry-leading starting wage of at least $15 an hour and the more than $2.5 billion that we invested last year in additional bonuses and incentives for front-line teams,” Henry, Amazon’s vice president of people experience and technology, worldwide consumer, said. The move follows several weeks of scrutiny of Amazon’s labor practices amid a landmark union drive at a Bessemer, Alabama, warehouse. Union organizers lost the election by a large margin; while they are challenging some 500 ballots, the vote lead held by Amazon is greater than the total number of challenged ballots. Although it won this time, “there are many reasons for Amazon to be concerned about future unionization efforts—especially in areas of the country where an Amazon job doesn’t pay relatively as well as it might in Alabama,” Arindrajit Dube, an economics professor at the University of Massachusetts Amherst, told CNN Business in an email. Amazon already expanded its workforce to more than 1.3 million people globally last year after hiring 500,000 new workers as it scrambled to manage an increase in demand from the pandemic. Pay hikes could help the company attract additional employees in the midst of a tight labor market that has left other businesses, like restaurants, struggling to find workers. “An increasing tightness in the labor market means its $15 minimum wage is decreasingly effective at recruitment and retention of qualified workers, and a substantial raise can help with that,” Dube said. Although the company plans to raise pay for nearly half a million workers, it did not say it will officially raise its $15 minimum wage. Doing so would put it in step with rival Costco, which increased its starting rate for hourly store workers to $16 per hour in February. The wage increases for some workers are likely needed for hiring, but the “bottom line is they can afford a wage hike more than just about any big retail [or] e-commerce company,” Molly Kinder, a fellow at the Brookings Institute, said. Amazon earned $21 billion in profit in 2020, and its market capitalization was $1.74 trillion as of Wednesday’s close. “As I have written about Amazon, $15 is a floor, not a ceiling,” Kinder said.–CNN’s Nathaniel Meyersohn contributed to this report.

SIRI – SIRI Stock: From $6.31 To $6.07 Explanation

The stock price of Sirius XM Holdings Inc (NASDAQ: SIRI) fell 3.88% as it went from a previous close of $6.31 to $6.07. This is why it happened.

The stock price of Sirius XM Holdings Inc (NASDAQ: SIRI) fell 3.88% as it went from a previous close of $6.31 to $6.07. Investors are responding negatively to SiriusXM’s first quarter 2021 operating and financial results.
These are the results:— Revenue of $2.06 billion, an increase of 5% compared to the prior-year period— The company recorded a net income of $219 million in the first quarter of 2021, compared to $293 million in the prior-year period.— The first quarter 2021 net income included a $220 million non-cash impairment charge connected to the failure of the company’s SXM-7 satellite, not reflecting any potential insurance recoveries, a $25 million charge related to the surrender of certain office space, and a $95 million benefit associated with a state tax audit settlement.— The net income per diluted common share was $0.05 in the first quarter of 2021, compared to $0.07 in the prior-year period.— The diluted EPS was $0.07 in the first quarter excluding the impact of the two impairments and the tax audit settlement mentioned above.— The adjusted EBITDA in the first quarter was $682 million, up 7% from $639 million in the prior-year period.
KEY QUOTES:
“I am pleased to announce SiriusXM has started the year impressively – we added 126,000 self-pay net subscribers, an 83% increase as compared to the period a year ago, saw a first quarter record-low churn rate of 1.6%, and are reporting a new record-high quarterly adjusted EBITDA figure. These strong results reflect the value we bring to our listeners through the breadth and depth of our content. Our advertising revenue grew 24%, driven by robust monetization of both on- and off-platform opportunities, as well as the growing podcast market. While we are benefiting from the broader reopening of the economy and the acceleration of consumers’ digital adoption, the meaningful long-term investments we’ve been making are also paying off. This includes creating and delivering compelling content, strengthening our digital product experiences, and scaling a full suite of end-to-end distribution and monetization solutions for content creators and publishers. We are extremely focused on achieving our 2021 goals and reinforcing our long-term position as North America’s premier audio entertainment company.”
“Across SiriusXM, Pandora and Stitcher, we have added new channels, shows, hosts, and podcasts, enhancing the expertly curated audio entertainment experience across all formats from music to sports. Drake, one of the most streamed artists in the world, launched his exclusive full-time SiriusXM channel, Sound 42. All of our audio platforms were on display as rocker Tom Morello launched a SiriusXM show, multiple new streaming music channels, and a new podcast available on SiriusXM, Pandora and Stitcher. We are working with highly regarded creators on new podcasts; earlier this week we announced the acquisition of 99% Invisible, the acclaimed and popular podcast from Roman Mars and his creator team. This was our first year as the exclusive audio broadcaster of the Masters Tournament, and we have expanded our streaming rights with both the NBA and MLB. We also created special music and talk programming that honored both Black History and Women’s History months back-to-back.”
— Jennifer Witz, Chief Executive Officer of SiriusXM
Disclaimer: This content is intended for informational purposes. Before making any investment, you should do your own analysis.

BA – FAA orders Boeing to fix 737 Max electrical issue

A 737 Max lands at Boeing Field in Renton, Washington, after a test flight.
Boeing/Paul Christian Gordon

The Federal Aviation Administration on Wednesday ordered Boeing to fix an electrical issue in a group of 737 Max airliners before the planes can enter service. The Immediately Adopted Rule requires airlines to “modify the electrical bonding of the support panels in the flight deck to provide sufficient electrical grounding,” the agency said.The order concerns a problem Boeing first reported to the FAA on April 7. Two days later, the company notified 16 airline customers that they address a potential electrical problem that could interfere with the operation of a backup power control unit.

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Boeing said it has developed a solution to the issue and is in the process of fixing the affected aircraft.Approximately 109 Max aircraft are affected, 71 of which fly for US airlines and have been removed from service, the FAA said in a statement to CNET. The agency didn’t say which domestic carriers are affected, but current operators of the aircraft include American, United, Southwest and Alaska.This latest issue is unrelated to the repairs to the Max’s flight control system the FAA ordered in November. Though it’s now flying again globally — except for China, the Max was grounded worldwide for almost two years after crashes in 2018 and 219 killed 346 people. As part of Boeing’s third-quarter earnings announcement Wednesday, Boeing CEO Dave Calhoun said he expects the work to take a few days per airplane. “We are also working closely with the FAA and customers to address electrical issues identified in certain locations in the flight deck of select 737 Max airplanes, he said. “We will continue to focus on safety, quality and transparency through this process.”