Smokin’ Earnings for CVS; Yelp Satisfies Craving by Scooping Up Eat24; Israelis Go Full Force On Corporate Cyber Attacks

Butt out…

Image courtesy of Mister GC/FreeDigitalPhotos.net

Image courtesy of Mister GC/FreeDigitalPhotos.net

CVS had some smokin’ good earnings even though it kicked the tobacco habit. As one of the largest pharmacies in all the land, CVS beat those fourth quarter estimates, and perhaps even shocked the tobacco industry, by earning a record $1.32 billion in profit and $1.21 a share. A year ago CVS pulled in $1.27 billion, tobacco and all. It was a big gamble, getting rid of cigarettes and its nicotine friends, since tobacco helped CVS pull in $2 billion annually. What may have contributed, however, to this quarter’s pleasing numbers was a super-combo of two very unique factors:  First, there are more insured Americans – who were previously uninsured – making up for lost times by getting all their prescriptions filled, and then some. Then there was that flu vaccine that proved less than useful against this season’s particularly nasty strain of the virus. Because the vaccine wasn’t as effective this time around, consumers were flocking to CVS to buy flu remedies causing a 13% increase in sales to $37.1 billion. Analysts only expected CVS to pull in $36 billion. So I guess, in some weird alternate universe, CVS can thank the flu. Sort of.

Can I get that to go?

Image courtesy of Iamnee/FreeDigitalPhotos.net

Image courtesy of Iamnee/FreeDigitalPhotos.net

Yelp is hoping to increase its presence in the food delivery arena by chowing down Eat24 to the very hearty price of $134 million. The two companies did some experimenting over a year ago and apparently it whet Yelp’s appetite to go full force on acquiring the online ordering engine. While Eat24 was only founded back in 2008, it already deals with 200,000 restaurants in 1,500 cities. Yelp will now compete with GrubHub –  who itself had a nifty little IPO debut back in April –  and is counting on its recent purchase to allow for a more streamlined approach to the online ordering experience. Sounds pretty tasty to me. Yelp currently has around 84,000 advertising accounts and, in case you were curious, it also has about a million restaurants listed with 135 million average monthly users dishing out their reviews, however unsavory they might be.

Bring it on…

Image courtesy of chanpipat/FreeDigitalPhotos.net

Image courtesy of chanpipat/FreeDigitalPhotos.net

Because Israel’s cyber-security is actually a matter of life and death for its citizens, it only make sense that it would lead the way in cyber-hacking defense. And since necessity is the mother of invention, it should come as no surprise that the latest defense mechanism to be used in the fight against corporate hacking – think Target, JPMorgan Chase, Home Depot, to name but a few –  is coming from Israel’s military. And hey, if you happen to make a few bucks on all the economic opportunities that come with protecting your peeps, then why not? Unit 8200, Israel’s elite intelligence division, has entered the cyber defense fray, launching its very own “cyber security” foundry called Team 8. With some help from investors like Google Chairman Eric Schmidt and Cisco, it’s safe to say (no pun intended, or maybe a little) that Team 8’s got some major street cred. Founded by former Unit 8200 member Nadav Zafrir, Team 8 bills itself as a “start-up for start-ups” (catchy, huh?).  No doubt Target, Home Depot and JPMorgan Chase are currently exploring their cyber-security options and licking their chops in anticipation of what Team 8 can do for them. Or not. Whatever the cost to implement the technology, it will still pale in comparison to the epic damage cyber hacks can cause. But I’m guessing if Eric Schmidt is throwing money at Team 8, then it’s probably worth it to have a go at the technology.

Snapchat’s latest News it and Lose it Feature; American Airlines Earnings Soar; Dow’s Downer of Day

Snap to it…

Image courtesy of Stuart Miles/FreeDigitalPhotos.net

Image courtesy of Stuart Miles/FreeDigitalPhotos.net

Maybe Snapchat’s $10 billion valuation isn’t so crazy after all now that the disappearing messaging app has introduced its latest – and possibly greatest – feature, Discovery. This new feature is going to offer bite-sized bits of news giving the user  several options to get more on a story all with the convenient, effortless swipe of a finger. And then, true to Snapchat tradition (and technology), the stories will last for 24 hours before…you guessed it, they vanish into thin virtual air. A slew of media companies are already partnered with the app, including (but not limited to) CNN, ESPN and Yahoo News. The hope is that this little partnership will take that younger, hipper audience of 100 million monthly active users (and counting) and turn them into traditional news enthusiasts. Then there’s the ad revenue aspect. Gotta love those ads (and the revenue they hopefully bring in). Snapchats plans to post ads and then split the revenue with its media partners.

Things that make you go hmmm…

Image courtesy of vectorolie/FreeDigitalPhotos.net

Image courtesy of vectorolie/FreeDigitalPhotos.net

American Airlines had a very good year and I can assure you I had nothing to do with it. The company posted its fourth quarter earnings regaling us with the news that it scored $597 million in net income. That number was particularly impressive since last year at this time the company posted a $2 billion loss. To be fair, (and I hate it that I have to be fair to American Airlines) that loss was because of one-time costs from its merger with US Airways and from its bankruptcy case. American Airlines also hooked in $1.1 billion in earnings with $1.52 per share, beating Wall Street’s estimates by a single, solitary cent. American Airlines can thank dropping fuel prices for some of its impressive earnings and the company plans to take a chunk of its $2.9 billion profit to update its pre-historic fleet and raise salaries. But if you’re hoping for a drop in fares, don’t hold your breath. It’s not happening.

Dow and out…

Image courtesy of David Castillo Dominici/FreeDigitalPhotos.net

Image courtesy of David Castillo Dominici/FreeDigitalPhotos.net

Today’s blizzard/storm had nothing on the Dow’s performance today which looked particularly disastrous with no thanks to some of the world’s biggest companies taking huge hits. Microsoft takes the number one spot with more than a 9% hit on its stock price today, despite the fact that it beat earnings estimates by 4%. Investors just didn’t see the growth, sales and transitioning that they expect from the once powerful and mighty software company. Oh well. Caterpillar takes the number two spot with a 7% hit on its shares. The company missed earnings expectations by $0.20. As prices for copper, coal and iron ore come down, there is less demand for mining equipment, which is precisely what Caterpillar does. The fact that the dollar is stronger than most other currencies is also putting a crimp in the Dow today. Procter & Gamble, is among those companies whose lousy earnings took a nasty 3.8% hit in its stock price, in part, because of this strong dollar of ours.  Other companies that have seen better days on the Dow include: Intel, Cisco, IBM, Nike. But alas, the list does not end there.

Not-So-Splashy Earnings for SeaWorld, Retails Fails and Cisco’s Mixed Messages

Tanked…

Image courtesy of tor00722/FreeDigitalPhotos.net

Image courtesy of tor00722/FreeDigitalPhotos.net

Shares of SeaWorld (SEAS) appear to be evaporating by 33% today after the amusement park company forecasted a decline of 6-7% with a lot of help from the very unflattering docu-drama “Blackfish.” The film, which takes a look at how killer whales in captivity are treated, seemed to put a damper on traffic to SeaWorld, especially at its San Diego location. The film had its debut just two months before SeaWorld’s IPO. Coincidence? Hmm. This marks the first time “Blackfish” has actually been mentioned with respect to SeaWorld’s earnings. Wall Street had predicted the company would pull in revenues of $447 million. But no such luck as revenues came in closer to the $405 million mark. To make matters worse, revenue was $415 million this time last year.

July retail blues…

Image courtesy of renjith krishnan/FreeDigitalPhotos.net

Image courtesy of renjith krishnan/FreeDigitalPhotos.net

Just when things were starting to look up, leave it to the month of July to put a damper on our fiscal spirits. That’s because, according to the US Commerce Department, US retail sales disappointed. How much did they disappoint? Well…they flat-lined. Sales flatlined despite jobs growth. Yes all that exciting job growth that we have been seeing the last few months could not pull July out of its lousy retail funk. Apparently, even all those people cashing in all their brand new employment checks still need a bit more time before they decide to part with their funds. The other little issue at play is that even though sales did grow in the clothing, personal care and, of course, groceries categories, those gains were offset by losses in other retail sectors. Let’s just hope (and spend) that this was a minor hiccup in a major fiscal recovery and not some evil sign of things to come.

Speaking of unemployment numbers…

Image courtesy of xedos4/FreeDigitalPhotos.net

Image courtesy of xedos4/FreeDigitalPhotos.net

IT provider Cisco came out with its fourth quarter earnings and actually beat analysts’ estimates. The company pulled in about $12.4 billion in fourth quarter revenue while Wall Street expected $12.1 billion. But. There’s always a but isn’t there? This one is about the company also announcing its plans to cut 8% of its workforce. In case you were wondering, that translates to 6,000 soon-to-be ex Cisco employees who will need to redo their LinkedIn profiles.