Prof. Fournier Press Review: November 15 – November 19
By Pierre Fournier
Agenda: Walmart, Great-West, Goodfood, Starbucks & Amazon, Air Canada, Johnson & Johnson.
Excellent results for Walmart. According to CNBC, Walmart reports quarterly results above analysts' expectations. In addition, the company reassures its customers by mentioning that its inventory is higher than last year, which is excellent news as Christmas purchases are approaching. The chain store's revenue increased by 4 percent to US $ 140 billion for the quarter ending late October.
Dividend increase for Great-West. Great news for Great-West shareholders. Indeed, according to Yahoo Finance, the company specializing in financial and insurance services announced that it is increasing its dividend by 12%. In addition, Great-West has declared an additional dividend of 5.2 cents. Shareholders on record December 3 will be paid this additional dividend on December 31.
The reopening of the economy is hurting Goodfood. According to Yahoo Finance, the Montreal-based company specializing in ready-to-cook meals says the relaxation of sanitary measures put in place since the summer has caused a reduction in sales at Goodfood. However, the company hopes its online sales can help increase sales. Nonetheless, Goodfood mentions that revenues for the last quarter are significantly higher than the same quarter before the pandemic, confirming that Goodfood has experienced a significant increase in new subscribers.
Image: Starbucks. All rights reserved.
Partnership between Starbucks and Amazon. According to CNN, Starbucks has announced a partnership with US company Amazon. They are collaborating on a store located near Central Park in Manhattan, New York. The store is very similar to a grocery store and a coffee shop, and customers will be able to do their grocery shopping without having to check out at the cash register. Essentially, cameras and sensors will track consumer purchases. This location near Central Park is a test market, and if the results are successful, other locations will open in New York and across the United States.
Air Canada ends support from the federal government. Air Canada says it no longer needs the program support it has received from the federal government due to the onset of the health crisis. The company mentions that with the recovery of the airline sector in recent months, its financial situation is much better. Another action that denotes a recovery in the airline sector is that Air Canada mentions that it will restore service to certain regional airports that it had ceased to serve following the start of the pandemic.
Johnson & Johnson splits into two companies. According to CNBC, US healthcare firm Johnson & Johnson announced that it intends to split into two separate companies. One entity will focus on hygiene products and non-prescription drugs, and the other will operate other J&J activities such as the production and sale of medical equipment and vaccines against COVID-19. This J&J announcement comes shortly after similar announcements from General Electric and Toshiba, which are also breaking into separate companies.