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.

Yahoo for Snapchat?; Why SodaStream Fizzled; The Container Store Coming Up Short

Make it snappy…

Image courtesy of KROMKRATHOG/FreeDigitalPhotos.net

Image courtesy of KROMKRATHOG/FreeDigitalPhotos.net

There’s an expensive little rumor going around that Yahoo is about to plunk down a hefty $20 million to become a part of the magic we call Snapchat. However, the app that has around 100 million users, and doesn’t generate much in the way of revenue, has got some wondering what exactly Snapchat sees in Yahoo. After all, Snapchat already dissed offers from both Google and Facebook. Snapchat, whose valuation is currently pegged at a not-so-modest $10-$20 billion, depending on whom you ask, is getting ready to prance around its latest offering, Snapchat Discovery. In case you hadn’t heard, that service is for professionally produced content, and like regular Snapchat, the content would still disappear after a certain period of time. Good thing Yahoo has been scooping up scads of professional producers to come up with new content. And let’s face it, Yahoo does have a certain knack for distributing all kinds of entertaining and useful content, apps and of course, the all-important ads, which is something from which Snapchat could surely benefit. As for Yahoo, well it needs something to do with all that money it made off of Alibaba Group.

Fizzled out…

Image courtesy of Suat Eman/FreeDigitalPhotos.net

Image courtesy of Suat Eman/FreeDigitalPhotos.net

Just because you’ve got Scarlett Johansson shilling for you, doesn’t mean your earnings are going to be just as star-studded. Case in point: SodaStream, the Israel-based company that went public in 2010, and which just saw its shares plunk down to a new low. Shares of the soda machine-maker fell below $23.00 for the first time. Ever. The company’s own predictions forecasted a 13% hit in its revenue, falling to a paltry $125 million. Certainly, the fact that Coca Cola, together with Green Mountain Coffee, are parading out its own version of a soda-making machine aren’t helping matters. So like every other company with food and beverage offerings that has taken a fiscal punch, SodaStream has made the decision to shift its focus to “health and wellness.”

Contain yourself!

Image courtesy of graur razvan donut/FreeDigitalPhotos.net

Image courtesy of graur razvan donut/FreeDigitalPhotos.net

With a name like “The Container Store” you can’t go wrong. Or can you? Shares of the company took a big a harsh 11% hit after reporting its second quarter earnings. It seems  the company failed to sell enough “containers” and such. Even though it earned over $193 million in revenue, it was several million short of Wall Street predictions. However, all was not lost as the company still managed to pull in an $0.11 per share profit.

Hamas Terrorists/Murderers Win Big Over the FAA, Boeing Not Up Up and Away and Facebook Sooo High Up

Yes, the terrorists have won…

Image courtesy of FrameAngel/FreeDigitalPhotos.net

Image courtesy of FrameAngel/FreeDigitalPhotos.net

It looks like the murderous terrorist Hamas organization scored a major victory against the world, and the US commercial airline industry as it got the FAA to ban flights to Israel. All major carriers including Delta and United Airlines have canceled flights because they are concerned that bloodthirsty Hamas will bring down aircraft with its never-ending supply of missiles obtained with lots of assistance from its nuke-happy friends in Iran. It’s a curious ban since there isn’t one in place for Afghanistan, Pakistan or Yemen – which begs the question as to whether or not the ban was really born out of safety concerns or just blatant run-of-the-mill anti-Semitism and sympathy for terrorists. Hmmm. The ban is expected to reduce revenue for airlines by tens of millions of dollars –  if not more. A major coup for Hamas, no doubt. But at least former New York City Mayor Michael Bloomberg who knows a things or two about money and politics, showed some major falafel balls by coming to Israel on an El Al flight to show solidarity for a country that is under constant attack by butchers whose sole purpose in life is to murder every single Jewish person on the planet.

Not exactly taking off?

Image courtesy of Stuart Miles/FreeDigitalPhotos.net

Image courtesy of Stuart Miles/FreeDigitalPhotos.net

Aerospace and defense company Boeing released its earnings today and all I can say is: Wow. “Wow” for two very distinct reasons. Reason number one is that the Chicago, Illinois-based company pulled in a profit of over 50% with a net income of close to $1.7 billion and $2.24 earnings per share. Boeing didn’t just beat the Street’s estimates it pummeled them. As for “wow” reason number two: The stock isn’t soaring, flying high or (insert any number of aviation-related analogies here) despite its amazing profits. That’s because Boeing’s $22.04 billion revenue was lower than Wall Street’s $22.3 billion estimate. Potatoes. Puhtatoes, I know, but still, when Wall Street has expectations, you best meet them. The company delivered 181 new aircraft this year – a 7% increase –  with over 780 more in the works. It’s all very promising but Wall Street wasn’t as smitten with the fact that the company got a one-time $524 million tax-cut that helped bring in that profit. It probably also didn’t help that Malaysia Airlines flights 370 and 17 were both Boeing jets.

“Like”

Image courtesy of Master isolated images/FreeDigitalPhotos.net

Image courtesy of Master isolated images/FreeDigitalPhotos.net

But guess who did soar? Facebook. Okay so that’s not exactly shocking news. Maybe just a little bit to the investors who were a tad bit skeptical over Facebook’s lack of mobile ad revenue. But it looks like this quarter cleared up those concerns as the social media giant is up over 60% propelled by those very ads and the cash they are bringing in – even as I write this. Analysts expected sales of $2.8 billion but hellooooo – this is Facebook we’re talking about and it pulled in more – $2.9 billion, naturally. Net income was up over $790 million and $.30 a share. That’s way more than double from a year ago. And with 1.5 million advertisers, and over 1.3 billion users, Facebook and its investors have a lot to “like.”