Today is Thursday, March 24, 2022.
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KB Home’s Supply Chain Pain
Shares of KB Home (NYSE: KBH) dropped 4.33% in after-hours trading on Wednesday after the home-builder posted negative earnings.
Financials: KB Home reported earnings per share of $1.47 and revenue of $1.4 billion in the quarter; both were below estimates.
Challenges: The company was hit with supply chain issues and increased stress in its “already-constrained construction labor force.” The result was delayed build times and completions.
Outlook: For the full-year guidance, KB Home said it expects housing revenues in the range of $7.2 billion to $7.6 billion, which was below estimates.
The Good: In spite of these problems, the average selling price rose 22% in the quarter and homebuilding operating income grew 49%.
Numbers: Shares of KB Home are down 12.51% over the past six months.
Final Thoughts: If mortgage rates climb this year as expected, how would that impact KB Home in 2022?
Notable Earnings Today: Darden Restaurants (NYSE: DRI), Nio (NYSE: NIO), TD Synnex (NYSE: SNX), Honest Company (Nasdaq: HNST), Hello Group (Nasdaq: MOMO), Co-Diagnostics (Nasdaq: CODX), Kingsoft Cloud Holdings (Nasdaq: KC), Joby Aviation (NYSE: JOBY), FactSet Research Systems (NYSE: FDS), Curiositystream (Nasdaq: CURI), Titan Machinery (Nasdaq: TITN), Mister Car Wash (NYSE: MCW), Gambling.com Group (Nasdaq: GAMB), MedAvail Holdings (Nasdaq: MDVL), Hookipa Pharma (Nasdaq: HOOK), SmartRent (NYSE: SMRT), Impel NeuroPharma (Nasdaq: IMPL), One Stop Systems (Nasdaq: OSS), uCloudlink Group (Nasdaq: UCL), The Metals Company (Nasdaq: TMC), Altus Power (NYSE: AMPS), Charlotte's Web Holdings (OTCMKTS: CWBHF), Neogen (Nasdaq: NEOG), Sigma Labs (Nasdaq: SGLB), Titan Medical (Nasdaq: TMDI), Unique Fabricating (NYSEAMERICAN: UFAB).
Notable IPOs Today: RF Acquisition Corp. (Nasdaq: RFACU).
Notable Equity Crowdfunding Campaigns Ending Today: NanoVMs (StartEngine), Armslock USA (Wefunder).
Notable Economic Events Today: Jobless Claims (8:30 a.m. ET), Durable Goods Orders (8:30 a.m. ET), Manufacturing PMI (9:45 a.m. ET), Services PMI (9:45 a.m. ET).
Why Cardano is Soaring This Week
The price of the cryptocurrency Cardano was up about 13% on Wednesday and about 20% in the past week.
Catalyst: Overall, the entire crypto market has been strong this week, but Cardano is jumping at a higher rate.
New Fund: Grayscale Investment released a new fund this week that will include digital currencies linked to smart contracts. That includes Cardano.
Final Thoughts: Even with the price increase, the value of Cardano is still down so far for 2022.
When Will Impossible Foods Go Public?
Plant-based meat company Impossible Foods is expected to have an initial public offering (IPO) as early as this year.
Valuation: As of its most recent private capital raise, Impossible Foods was worth $7 billion.
Bright Future: Investors see the growing plant-based meat industry and the emergence of environmental social governance (ESG) investing as reasons to be bullish on the company.
Bad Omen: But competitor Beyond Meat (Nasdaq: BYND) has seen its stock price plummet. Some people think the same fate awaits Impossible Foods if it goes public.
Final Thoughts: Impossible Foods has not stated when - and if - it will go public, but keep an eye on any developments. If it went public, it would be one of the most anticipated IPOs of the year.
Trends to Watch
Not Lovin’ It: McPlant test is said to be off to a tepid start for McDonald's and Beyond Meat (Seeking Alpha)
Back Open: Russian Stock Market to Partially Reopen on Thursday (The Wall Street Journal)
Big Implications: Who stands to make and lose money if the SEC climate rule becomes law (CNBC)
Deja Vu: 'Meme stock' rally redux? GameStop, AMC shares rocket higher (Reuters)
Farmer’s Market: FarmTogether Announces New Sustainable Farmland Fund (Crowdfund Insider)
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