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Thursday April 18, 2019

Finances

Finances
 

Delta Flies Above Earnings Estimates

Delta Air Lines, Inc. (DAL) released its quarterly earnings report on Wednesday, April 10. The airline announced record revenue for the first quarter and increased its earnings projections.

Delta reported quarterly revenue of $10.47 billion. This is up from last year's first quarter revenue of $9.97 billion and above the $10.42 billion in revenue that Wall Street predicted.

"Our March quarter performance demonstrates the power of our growing brand preference, our unmatched competitive advantages and most importantly the Delta people who are committed to providing the best travel experiences for our customers every day," said Delta CEO Ed Bastian. "With the momentum in our business and our American Express contract renewal, we have increased confidence in achieving our full-year plan of top-line growth, margin expansion and double-digit earnings growth."

The company announced earnings of $730 million for the quarter, which was up from earnings of $557 million one year ago. On an adjusted earnings per share basis, the company reported earnings of $0.96 per share, which was more than the $0.90 per share that analysts predicted.

On Wednesday, Delta announced that it expects to earn between $2.05 and $2.35 per share in the second quarter, surpassing analysts' average estimates of $2.14 per share. The company also expects to increase its flight capacity by 4% to 4.5% year-over-year. Delta's president, Glen Hauenstein, cited customer demand as the reason for the expected growth. He noted, "Demand for Delta's product has never been stronger, as evidenced by our 7.5% top line growth in the March quarter. This underpins our expectation that June quarter unit revenue should grow 1.5% to 3.5%, with sequential improvement in passenger unit revenue across all entities."

Delta Air Lines, Inc. (DAL) shares closed at $58.04, up 0.9% for the week.

Rite Aid's Shares Fall


Rite Aid Corporation (RAD) reported quarterly earnings on Thursday, April 11. The drug store chain reported revenue that fell below Wall Street's estimates, causing shares to fall more than 10% after the report's release.

Rite Aid announced revenue of $5.38 billion for the fourth quarter. This is down from revenue of $5.39 billion reported in the same quarter last year and below the $5.56 billion in revenue that analysts expected.

"Despite a mild flu season, we delivered our third consecutive quarter of same-store pharmacy sales and prescription count growth thanks to a record number of immunizations and other script growth initiatives," said Rite Aid CEO John Standley. "As we begin our new fiscal year, we'll look to build on this momentum as we continue transforming our business to better align with our new operational footprint and deliver greater value in the emerging value-based care marketplace."

The company reported an earnings loss of $272.98 million for the quarter, down from earnings of $767.07 million one year ago. On an adjusted earnings per share basis, the company posted an earnings loss of $0.01 per share, which was better than analysts' estimates of an earnings loss of $0.02 per share.

On Thursday, Rite Aid announced that it expects revenue of $21.5 billion to $21.9 billion for the full year, falling short of the $22.1 billion analysts were projecting. The company also announced that its board approved a 1-for-20 reverse stock split in order to reduce the number of outstanding shares and comply with the New York Stock Exchange's share price listing rules. Following the earnings release, the company's shares fell 10.3% to $0.51.

Rite Aid Corporation (RAD) shares closed at $.50, down 16% for the week.

Bed Bath and Beyond's Shares Tumble


Bed Bath & Beyond Inc. (BBBY) announced quarterly earnings on Wednesday, April 11. The home goods retailer saw shares fall more than 8% following the report's release.

Revenue for the fourth quarter reached $3.31 billion. This is down from revenue of $3.72 billion reported during the same quarter last year and below the $3.33 billion in revenue that analysts expected. For the full year, Bed Bath and Beyond's revenue totaled $12.03 billion, down from $12.35 billion in the previous year.

"During the fourth quarter and throughout fiscal 2018, we have been driving significant foundational change across our business," said Bed Bath and Beyond CEO Steven Temares. "The pace of our transformation accelerated during fiscal 2018 and we made measurable progress within each of our four focus areas of our plan. While this is a multiyear effort, our Board and management team are confident that the actions underway to drive our near-term and long-term financial targets will enable Bed Bath & Beyond to succeed and drive shareholder value."

Bed Bath & Beyond reported a loss in quarterly net earnings of $253.80 million, down from earnings of $194.04 million one year ago. On an adjusted earnings per share basis, the company posted earnings of $1.20 per share, surpassing the $1.10 per share that analysts predicted.

On Wednesday, the company announced that it expects to earn between $2.11 and $2.20 per share in fiscal 2019, exceeding analysts' estimates of $1.80 per share. Despite the positive earnings outlook, Bed Bath and Beyond's shares fell more than 8% on Wednesday as analysts focused on the retailer's 1.4% drop in comparable sales for the fourth quarter and increased competition from online retailers. The company hopes to combat declining sales by re-platforming its websites, improving its personalized marketing efforts and expanding customers' online experience.

Bed Bath & Beyond Inc. (BBBY) shares closed at $17.99, down 1.6% for the week.

The Dow started the week at 26,313 and closed at 26,412 on 4/12. The S&P 500 started the week at 2,888 and closed at 2,907. The NASDAQ started the week at 7,925 and closed at 7,984.
 

Yields Hit Three-Week Highs

Yields on U.S. Treasury bonds bounced back from mid-week lows following upbeat economic data from China released early Friday. The news increased investors' risk appetites and sent yields soaring to three-week highs.

On Friday, China released economic data showing that Chinese exports in March increased 14.2% year-over-year, surpassing the 8% increase economists expected. In February, exports were down 20.7% from a year ago.

Treasury yields jumped to three-month highs following the news. The yield on the 10-year Treasury note gained 3.8 basis points to 2.540%, while the yield on the 30-year Treasury bond climbed 2.4 basis points to 2.961%.

"Treasuries are on their back foot to close out the week, an unsurprising development given stronger-than-expected data out of both China...and the eurozone," wrote Jon Hill, interest-rate strategist at BMO Capital Markets.

Yields held on to their gains following the release of U.S. import data on Friday. The Labor Department reported that U.S. import prices increased for the third straight month in March.

The data indicated that import prices rose 0.6% in March, which was above the 0.4% increase that analysts expected. The Labor Department credited increased costs of fuel and industrial supplies for the monthly boost.

The 10-year Treasury note yield closed at 2.56% on 4/12, while the 30-year Treasury bond yield was 2.97%.
 

Mortgage Rates Move Higher

Freddie Mac released its latest Primary Mortgage Market Survey (PMMS) on Thursday, April 11. The report revealed that mortgage rates inched slightly higher this week.

The 30-year fixed rate mortgage averaged 4.12% this week, up from 4.08% last week. During this time last year, the 30-year fixed rate mortgage averaged 4.42%.

This week, the 15-year fixed rate mortgage averaged 3.60%, an increase from last week when it averaged 3.56%. Last year at this time, the 15-year fixed rate mortgage averaged 3.87%.

"Rates moved up slightly this week while mortgage applications decreased following last week's jump in rates — indicating borrower sensitivity to changing mortgage rates," said Sam Khater, Chief Economist at Freddie Mac. "Despite the recent rise, we expect mortgage rates to remain low, in line with the low 10-year treasury yields, boosting homebuyer demand in the next few months."

Based on published national averages, the money market account closed at 1.22% on 4/12. The one-year CD finished at 2.57%.

Published April 19, 2019
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Shelby Harder, 2018
Dr. Irving Auld and Dorothy
Roher Auld Scholarship

"Many students take for granted what a university has to offer. However, I am thankful every single day for the opportunity to attend this prestigious school. At Lawrence, you have the ability to engage in Socratic debates about the world we live in at dinner, play recreational or NCAA sports, and talk one on one with brilliant professors. At Lawrence, you don't just 'learn' a subject, you are immersed in it. You dive into the liberal arts and these professors show you the beauty in it all, and how everything is tied together. I am a Biochemistry major with a soft spot for rocket science, philosophy, and evolution. Lawrence is my dream school, and it would have never been possible without the Dr. Irving Auld and Dorothy Roher Auld Scholarship. I am forever grateful for their generosity."

Juliana E. Olsen-Valdez, 2018
Carroll Family Scholarship

"Lawrence University is a great place for students looking to embrace their multi-interested approach to learning. As a Geology major, I have spent many long hours in laboratories. But, I have also had the opportunity to organize and lead students on outdoor backpacking trips, help build a stronger community for International students, participate in dialogues on campus initiatives, attend dozens of musical events, and study abroad in a field-based geology program, all while taking classes in a variety of academic spheres on campus. Lawrence, as an institution and student body, creates a collective of learners, listeners, and leaders who are continuously evolving their understanding of the world around them. I am fortunate to have the support of the Carroll Family Scholarship, so that I can say I am a part of this exceptional community too!"

Weiqi "Vicky" Liang, 2019
Marian H. Cuff Endowed Scholarship

"Lawrence is a special institution with nice people around the campus. I better myself by trying out different things and using new ways to think critically. Even though I am a Philosophy major, I have successfully taken classes in Anthropology, Biology, Economics, and Government. In addition, I still find many great extracurricular opportunities to explore, such as singing with Viking Chorale, even though I am not a music major. While having the great experience of volunteering at the elderly center last year, I became an elder advocacy coordinator at the Volunteer Community Service Center. At Lawrence, I've learned to handle difficult academic problems while looking forward to exploring possible opportunities. I am very grateful to be awarded the Marian H. Cuff Endowed Scholarship for every year I have been here, and appreciate that the scholarship has provided this wonderful Lawrence experience to me."

Anthony Cardella, 2018
Ansorge Family Scholarship

"I am so excited that I am able to attend Lawrence University. I know that I will make great progress studying piano with Dr. Michael Mizrahi. Since being at Lawrence I've already made a lot of progress and I really love it here. I am so grateful for the Ansorge Family Scholarship that made it possible for me to come to Lawrence because without it, I might not have been able to afford the cost of attending a school that is a great fit for me and a place where I will learn so much and go so far."

Milwaukee-Downer Scholarships and Professorships

Some of the many recipients of Milwaukee-Downer scholarships gather for a photo with Carolyn King Stephens M-D'62 and Marlene Crupi-Widen M-D'55 in January 2014 at the annual scholarship luncheon.

Rosamund Victoria Bille Adler Scholarship
Dr. Charles E. Albright Scholarship
Helen Daniels Bader Scholarship
James G. and Ethel M. Barber Scholarship
Catharine Beecher Endowed Fund for Downer Women
Bessie A. Bell Scholarship
Berk Scholarship
Frederick C. Best Scholarship
Beta Study Club Scholarship
Lynde Bradley Scholarship
Lucia R. Briggs-Alumnae Scholarship
Edith Lange Brooks Scholarship
Anne Barman Caldwell Scholarship
Alice Miller Chester Scholarship
City of Milwaukee Student Funds Scholarship
Milwaukee-Downer Class of 1940 Fund
Milwaukee-Downer Class of 1942 Fund
College Endowment Association Scholarship
Janet Cope Crawford Scholarship
Jessie Mabbott Daniels Scholarship
F. T. Day Scholarship
Rufus Dodge Scholarship
Julia P. Ely and Hannah R. Vedder Memorial Scholarship
General Endowed Scholarship - M-D College
Dr. Alfred W. and Mrs. Ada F. Gray Scholarship
Berenice E. Hess Scholarship Endowment
Lucille Ray Hibbard Scholarship
Belle Austin Jacobs Scholarship
Helen McDermott Jurack and Ronald J. Mason Scholarship
Marjorie S. Logan Scholarship
Nellie Maxwell Scholarship
S. Annabelle & Paul McGuire Scholarship
Memorial Scholarship Fund - Milwaukee-Downer
Milwaukee-Downer Class of 1953 Scholarship
Milwaukee-Downer Class of 1955 Scholarship
Milwaukee-Downer Class of 1956 Scholarship
Milwaukee-Downer Class of 1957 Scholarship
Milwaukee-Downer Class of 1958 and 1959 50th Reunion Scholarship
Milwaukee-Downer Club Scholarship
Milwaukee-Downer/Lawrence College Consolidation 50th Anniversary Scholarship
Francis Evelyn Kelley Morgan Memorial Scholarship
O'Neill-Anderson Family Scholarship Endowment
Elizabeth A. Olson Scholarship
Gilbert Haven Peirce, Sr. and Emma Elizabeth Manor Peirce Milwaukee-Downer Scholarship
Aleida J. Pieters Scholarship
Matilda Siefert Puelicher Scholarship
Elizabeth Ann Richardson Scholarship
William M. Ross Memorial Scholarship
Elizabeth Rossberg Scholarship
Charles Frederic Sammond Scholarship
Mildred L. Schroeder Scholarship
Sivyer Educational Fund for Women
Marion Merrill Smith Scholarship
Dr. Elizabeth A. Steffen Scholarship
W. Mead and Elizabeth McKone Stillman Scholarship
Strzelczyk Family Scholarship
Clare Scherf Sweetman Scholarship
Raymond H. and Jane K. Taylor Scholarship
Jerline E. Walfoort Memorial Scholarship
Barbara E. Wehr Fund
Harmony Weissbach Scholarship
Martha and Frances Wheelock Scholarship
James G. and Ethel M. Barber Professorship of Theatre and Drama
T. A. Chapman Professorship in Music
Alice G. Chapman Professorship in Physics
Alice G. Chapman Librarianship
Milwaukee-Downer College and College Endowment Association Professorship

Angela Small Fry Intia, 2019
Maurine Campbell Scholarship

"Thanks to the Maurine Campbell scholarship, I have been able to attend the amazing school that is Lawrence University. With the help from this scholarship, I have been able to pursue my dream career in chemistry working with the outstanding and extremely helpful faculty here. Even outside of chemistry I take the time for exploration into my interests and want to give back through my work as a resident life advisor, stock room assistant, and student supervisor at Bon Appetit. Everything I have learned here, academically or not has forever molded the person I am today."

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