Latest news with #ex-Amazon
Yahoo
29-05-2025
- Business
- Yahoo
Analyzing the Current Earnings Outlook
Note: The following is an excerpt from this week's Earnings Trends report. You can access the full report that contains detailed historical actual and estimates for the current and following periods, please click here>>> Here are the key points: Total S&P 500 earnings for the June quarter are expected to be up +5.5% from the same period last year on +3.8% higher revenues, with a broader and greater pressure on estimates relative to other recent periods. Q2 earnings estimates for 15 of the 16 Zacks sectors are down since the quarter got underway, with Aerospace as the only sector whose estimates have moved higher. The Tech sector's estimates are down since the start of the period, but they have notably stabilized in recent weeks. The Q1 reporting cycle is now effectively behind us, with results from less than two dozen S&P 500 members still awaited at this stage. The Q1 earnings cycle has ended for 9 of the 16 Zacks sectors. Total Q1 earnings for the 477 S&P 500 members that have reported results are up +11.4% from the same period last year on +4.4% higher revenues, with 74.2% beating EPS estimates and 62.9% beating revenue estimates. An Underwhelming Retail Sector Earnings Performance Total Q1 earnings for the 28 of the 33 Retail sector companies in the S&P 500 index that have reported already are up +11.2% from the same period last year on +5.0% higher revenues, with 60.7% beating EPS estimates and 57.1% beating revenue estimates. Regular users of Zacks Research know that we have a stand-alone economic sector for the Retail sector, unlike the 'official' Standard & Poor's classification that places retailers in the Consumer Discretionary and Consumer Staples sectors. The Zacks Retail sector includes online vendors like Amazon AMZN, restaurant operators like McDonald's MCD, and conventional retailers like Walmart WMT and Target TGT. The comparison charts below show the Q1 EPS and revenue beats percentages for these companies in the context of what we had seen from the same group of 28 Retail sector companies in other recent periods. Image Source: Zacks Investment Research As you can see above, these Retail sector companies have been struggling to beat EPS and revenue estimates. The comparison charts below show this group's earnings and revenue growth rates in a historical context. The right-hand chart shows the group's earnings and revenue growth pace on an ex-Amazon basis. Image Source: Zacks Investment Research As you can see below, the group's +11.2% earnings growth drops to a decline of -5.0% once Amazon's substantial contribution is excluded from the numbers. If we look at Retail sector earnings on an annual basis, the expectation is for +4.1% earnings growth this year, which follows +22.7% growth in 2024. But as we saw with the Q1 earnings results, all of that growth is coming from Amazon, with this year's +4.1% earnings growth dropping to -0.6% and last year's +22.7% dropping to +1.8% once Amazon's contribution is excluded from the sector's numbers. A significant part of the sector's earnings challenge is a result of margin pressures, with the logistics associated with e-commerce sales forcing retailers to spend heavily on fulfillment and deliveries. You can see this in the chart below that shows the sector's net margins on an annual basis. The left-hand side showing the sector as a whole and the right-hand side showing the sector's margins excluding Amazon. Image Source: Zacks Investment Research As you can see above, Retail sector margins outside of Amazon have been on a downtrend since 2021, with this year's margins expected to serve as a bottom and start recovering going forward. Evolving Expectations for 2024 Q2 and Beyond The start of Q2 coincided with heightened tariff uncertainty following the punitive April 2nd tariff announcements. While the onset of the announced levies was eventually delayed for three months, the issue has understandably weighed heavily on estimates for the current and coming quarters. The expectation at present is for Q2 earnings for the S&P 500 index to increase by +5.5% from the same period last year on +3.8% higher revenues. The chart below shows how Q2 earnings growth expectations have evolved since the start of the year. Image Source: Zacks Investment Research While it is not unusual for estimates to be adjusted lower, the magnitude and breadth of Q2 estimate cuts are greater than we have seen in the comparable periods of other recent quarters. Since the start of the quarter, estimates have come down for 15 of the 16 Zacks sectors, with the biggest declines for the Transportation, Autos, Energy, Construction, and Basic Materials sectors. The only sector experiencing favorable revisions in this period is Aerospace. Estimates for the two largest earnings contributors to the index – Tech & Finance – have also declined since the quarter began. Tech sector earnings are expected to be up +11.9% in Q2 on +9.9% higher revenues. While these earnings growth expectations are materially below where they stood at the start of April, the revisions trend appears to have notably stabilized lately, as we have been flagging in recent weeks. You can see this in the sector's revisions trend in the chart below. Image Source: Zacks Investment Research This stabilizing turn in the Tech sector's revisions trend can be seen in expectations for full-year 2025 as well, as the chart below shows. Image Source: Zacks Investment Research The above two charts show that estimates for the Tech sector have stabilized and are no longer under the type of downward pressure that we were experiencing earlier. The Tech sector is much more than just any another sector, as it alone accounts for almost a third of all S&P 500 earnings. The Earnings Big Picture The chart below shows expectations for 2025 Q1 in terms of what was achieved in the preceding four periods and what is currently expected for the next four quarters. Image Source: Zacks Investment Research The chart below shows the overall earnings picture for the S&P 500 index on an annual basis. Image Source: Zacks Investment Research While estimates for this year have been under pressure lately, there haven't been a lot of changes to estimates for the next two years at this stage. Stocks have recouped their tariff-centric losses, although the issue has only been deferred for now. While some of the more dire economic projections have eased lately, there is still plenty of macro uncertainty that will likely continue to weigh on earnings estimates in the days ahead, particularly as we gain visibility on the tariffs question. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Inc. (AMZN) : Free Stock Analysis Report Target Corporation (TGT) : Free Stock Analysis Report Walmart Inc. (WMT) : Free Stock Analysis Report McDonald's Corporation (MCD) : Free Stock Analysis Report This article originally published on Zacks Investment Research ( Zacks Investment Research Sign in to access your portfolio
Miami Herald
26-04-2025
- Automotive
- Miami Herald
Hundreds of EV Jobs for Indiana? Slate Auto Eyes Former Printing Plant
Slate Auto is the newest automaker on the scene, with strong support from Jeff Bezos and a few other ex-Amazon executives being just a few of its noteworthy attributes. Slate has been rightfully making headlines for its highly customizable $27,500 EV that plays double duty as a transformer, able to be easily turned from a truck into an SUV or a fastback SUV body style. Better yet, not only will that base MSRP drop to around $20,000 after the federal EV tax credit, but the automaker plans to produce its vehicles in the U.S. The EV startup is close to leasing a former printing plant in Warsaw, Indiana, that was home to R.R. Donnelley until around two years ago. Slate has not disclosed the sum they're paying for the 1.4 million-square-foot facility, but Indiana economic development officials told News Now! Warsaw earlier this year that the factory could employ up to 2,000 people and that the company was offered an incentive package by the county. Slate was not mentioned in any of these discussions, but a report from TechCrunch shows that aerial photos shown by the automaker earlier on Thursday match a public listing for the factory. Even before this, Slate Auto was based out of "Re:Build Manufacturing," a company focused on "rekindling American industry." It seems that patriotism and a dedication to local manufacturing are key points in Slate's mission. "Our truck will be made here in the USA as part of our commitment to re-industrializing America," Slate's CEO, Chris Barman, said onstage while the factory photo was displayed behind her. It might seem insane to think that a locally made automobile can retail for $20,000 after the EV incentives, but there are two key factors contributing to that figure. The first is the simplistic nature of the Slate. One look at its configurator will show you just how barebones you can order this thing. Not to mention that any colors or designs you want are offered as wraps, rather than paint, saving both the customer and Slate oodles of cash. The second, of course, is the healthy dose of funding the company has received. Between Jeff Bezos, Guggenheim Partners CEO Mark Walter, and powerhouse VC firm General Catalyst, Slate Auto has raised well over $100 million to date. If the excited customers speak with their wallets as well, we could not only see the introduction of one of the cheapest EVs around, but also a strong injection of capital into American manufacturing and the creation of hundreds of jobs. It's safe to say that something of this magnitude is not often seen in the automotive industry, and we can only hope it's as successful as it seems it will be. Copyright 2025 The Arena Group, Inc. All Rights Reserved.
Yahoo
25-04-2025
- Automotive
- Yahoo
Slate: Introducing the Bezos-backed EV pickup for the masses
'We built it, you make it.' That's the motto for Slate, a new American electric vehicle company, which just revealed its launch model and is backed by ex-Amazon (AMZN) executives, including, reportedly, Jeff Bezos's family office Slate said its EV pickup, a bare-bones truck with a footprint smaller than a Ford (F) Maverick, will cost somewhere in the mid-$20K range, and it will come in any color you want — as long as it's slate gray, that is. The option-challenged vehicle offers a choice of two battery sizes for the rear-wheel-drive truck: a 52.7-kWh battery pack targeting 150 miles of range and an 84.3-kWh pack with 240 miles of range. However, the Michigan company will offer a massive number of custom parts, vinyl skins, and even a roof to make it an SUV if the customer desires. This is where the 'make it' part comes in, because the customers will install these items themselves. Buyers can also choose to do none of these things and have a cheap, utilitarian pickup. 'The auto industry has abandoned the working class in America. And what I think is so exciting and different about Slate is that we have taken this stance that we're going to build cars for working-class America, in America, for Americans,' Jeremy Snyder, Slate's chief commercial officer, told Yahoo Finance. 'It's just something that's been lost.' Slate's founders, former Amazon Consumer CEO Jeff Wilke and MIT classmate Miles Arnone, aimed to make this vehicle so American workers of all stripes could have cheap, reliable, and efficient transportation. As previously reported by TechCrunch, there are several former Amazon executives involved with Slate and one big investor: Amazon chairman Jeff Bezos. Bezos, through his family office, reportedly holds a passive stake and is not directly involved in the day-to-day business. Snyder said Slate wouldn't comment on Bezos's involvement. Nevertheless, unlike Amazon's other EV investment, Rivian (RIVN), Snyder said Slate will be cash flow positive shortly after production, which will begin in late 2026. Hitting that metric is a tough ask in the current automotive environment, where the industry has seen EV sales growth slow after massive gains earlier in the decade. The prospect of the federal EV tax credit going away is also a threat, in addition to the negative effects of President Trump's tariffs on critical supply chains. Synder said the company is able to hit its profitability goals because all its parts are made in America (save items like tires), and vehicle parts are not stamped. The exterior parts are composite pieces that are easier to make and avoid Trump's tariffs on steel and aluminum. In addition, the exterior parts are already dyed slate gray, meaning there's no paint shop either, thus lowering manufacturing costs. And with no options available at the factory, assembly is much simpler and can be done within a smaller footprint. Slate hasn't revealed its manufacturing location yet or how many vehicles it intends to build when volume production is met. One key to reaching the profitability goals is the higher-margin customization business. Snyder, who cut his teeth building out Tesla's retail network, sees customers being able to buy parts to customize their Slate EVs, akin to the App Store for iPhones. 'We're all about DIY," Snyder said. 'It's a very open-source ethos that allows customers to either like the vehicle [as is]," or, he added, "They can choose whatever color they want. They can do custom print on their wrap to make it however they want, they can 3D-print headlight covers and taillight covers.' Snyder added, 'Everybody wants to be a maker, everybody wants to stand out. Everybody wants to do their own thing ... we're giving the perfect platform for that.' Prospective customers can put their name on the reservation list starting immediately. Pras Subramanian is a reporter for Yahoo Finance. You can follow him on X and on Instagram.
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Express Tribune
25-04-2025
- Automotive
- Express Tribune
Slate Auto Unveils $25K customizable EV pickup backed by Jeff Bezos
Listen to article Michigan-based EV startup Slate Auto, backed by Amazon founder Jeff Bezos, has revealed its first vehicle: a $25,000 electric pickup designed for affordability and deep customization. Unveiled Thursday night at a launch event in Long Beach, California, the no-frills Slate Truck features a 52.7 kWh battery with an estimated range of 150 miles and a 201-horsepower motor driving the rear wheels. Buyers can upgrade to an 84.3 kWh battery offering up to 240 miles of range. Deliveries are expected to begin in late 2026. Targeted at cost-conscious and DIY-savvy consumers, the base model comes with steel wheels, crank windows, and no radio or power features. Customers can add upgrades from a catalog of over 100 accessories, including vinyl wraps, power windows, and a $5,000 SUV conversion kit. 'All trucks come in one slate-gray color and base form,' said Slate CEO Chris Barman, a former Fiat-Chrysler executive. 'This allows us to cut complexity and reduce costs dramatically.' Slate aims to appeal to younger and working-class buyers who value personalization. The vehicles are designed to be easily modified by owners or installed at local service centers. Founded by ex-Amazon executives Jeff Wilke and Miles Arnone, Slate seeks to avoid high startup losses with a lean manufacturing model based in the US. The company says its composite body panels and absence of a paint shop reduce capital costs by up to $500 million. Unlike rivals Tesla and Rivian, whose pickups start near $70,000, Slate intends to offer the most affordable new EV and pickup truck on the US market. A refundable $50 deposit secures a reservation. Company officials emphasized a maker ethos: 'We're giving customers a blank slate to build their dream truck,' said Slate's Chief Commercial Officer Jeremy Snyder.
Yahoo
25-04-2025
- Automotive
- Yahoo
Slate: Introducing the Bezos-backed EV pickup for the masses
'We built it, you make it.' That's the motto for Slate, a new American EV company, which just revealed its launch model and is backed by ex-Amazon execs including, reportedly, Jeff Bezos' family office Slate says its EV pickup —a bare-bones truck with a footprint smaller than a Ford Maverick — will cost somewhere in the mid-$20K range, and it will come in any color you want — as long as it's slate grey, that is. The option-challenged vehicle offers a choice of two battery sizes for the rear-wheel-drive truck: a 52.7-kWh battery pack targeting 150 miles of range and an 84.3-kWh pack with 240 miles of range. However, the Michigan company will offer a massive number of custom parts, vinyl skins, and even a roof to make it an SUV if the customer desires. This is where the 'make it' part comes in, because the customers will install these items themselves. Buyers can also choose to do none of these things and have a cheap, utilitarian pickup. 'The auto industry has abandoned the working class in America. And what I think is so exciting and different about Slate is that we have taken this stance that we're going to build cars for working-class America, in America, for Americans,' Jeremy Snyder, Slate's chief commercial officer, told Yahoo Finance. 'It's just something that's been lost.' Slate's founders, former Amazon Consumer CEO Jeff Wilke and MIT classmate Miles Arnone, aimed to make this vehicle so American workers of all stripes could have cheap, reliable, and efficient transportation. As previously reported by TechCrunch, there are several former Amazon execs involved with Slate and one big investor: Amazon chairman Jeff Bezos. Bezos, through his family office, reportedly holds a passive stake and is not directly involved in the day-to-day business. Snyder said Slate wouldn't comment on Bezos's involvement. Nevertheless, unlike Amazon's other EV investment, Rivian, Snyder says Slate will be cash flow positive shortly after production, which will begin in late 2026. Hitting that metric is tough ask in the current automotive environment, where the industry has seen EV sales growth slow after massive gains earlier in the decade. The prospect of the federal EV tax credit going away is a threat as well, in addition to the negative effects of President Trump's tariffs on critical supply chains. Synder says the company is able to hit its profitability goals because all its parts are made in America (save items like tires), and vehicle parts are not stamped. The exterior parts are composite pieces that are easier to make and avoid Trump's tariffs on steel and aluminum. In addition, the exterior parts are already dyed slate gray, meaning there's no paint shop either — thus lowering manufacturing costs. And with no options available at the factory, assembly is much simpler and can be done within a smaller footprint. Slate hasn't revealed its manufacturing location yet or how many vehicles it intends to build when volume production is met. One key to reaching the profitability goals is the higher-margin customization business. Snyder, who cut his teeth building out Tesla's retail network, sees customers being able to buy parts to customize their Slate EVs, akin to the App Store for iPhones. 'We're all about DIY," Snyder said. 'It's a very open-source ethos that allows customers to either like the vehicle [as is]," or, he added, "They can choose whatever color they want. They can do custom print on their wrap to make it however they want, they can 3D-print headlight covers and taillight covers.' Snyder added, 'Everybody wants to be a maker, everybody wants to stand out. Everybody wants to do their own thing ... we're giving the perfect platform for that.' Prospective customers can put their name on the reservation list starting immediately. Pras Subramanian is a reporter for Yahoo Finance. You can follow him on X and on Instagram. Sign in to access your portfolio
