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AMD maintains guidance amid coronavirus scare, stock moves higher
Advanced Micro Devices Inc. said Thursday afternoon that it will maintain its revenue guidance for the current quarter despite the spread of COVID-19, though admitted that sales will likely come in toward the low end of its forecast range. Near the end of a presentation for financial analysts Thursday afternoon, executives for the chip maker said that its supply chain is almost back to normal after China extended the Lunar New Year holiday because of the spreading virus. "Based on what we see today, we're actually back to our normal supply capacity," AMD Chief Executive Lisa Su said, while admitting that demand in China had taken a hit. In a related news release, AMD stated, "AMD expects the impact from COVID-19 in the first quarter to be modest, potentially resulting in revenue coming in at the lower end of the guidance of approximately $1.8 billion, plus or minus $50 million. Full year 2020 financial guidance remains unchanged." In the analysts' day session, AMD detailed plans for a 20% compound annual growth rate that boosted shares; the stock received another jolt after the guidance discussion. AMD's stock was up more than 5% in after-hours trading following the end of the presentation.
Breaking
Starbucks sees early recovery in China, no signs of coronavirus impact on U.S. sales
Starbucks Corp. said late Thursday it was already showing early signs of recovery in China and that U.S. sales are still strong despite the COVID-19 coronavirus. In a filing with the Securities and Exchange Commission, the company said that while there were some near-term financial headwinds, "our long-term, optimistic outlook for the growth potential of Starbucks is undiminished." Starbucks said that with China "showing early signs of recovery," it is seeing that "the positive momentum that we demonstrated in our U.S. retail business over the past several quarters has continued" into the second quarter. "To date, there are no perceptible signs of COVID-19 impact on our U.S. business, which accounted for approximately 65% of total consolidated revenues in the first quarter of fiscal 2020," Starbucks said. Shares of Starbucks slipped 0.1% after hours, following a 4.4% decline to close the regular session at $76.19.
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Opinion: The 1 thing workers want more of — and it’s not money
Bosses think they already do this well, and their employees say that’s just not true.
My mom asked for a divorce. My dad made his mother his pension beneficiary — then took his own life. Now my mom and grandma are feuding. Who’s right?
‘My grandmother and mother both have lawyers, and they both say that they are going to get this pension. It’s been dragging on for nearly two years.’
Kohl's will discontinue eight women's brands in effort to revive apparel business
Kohl's Corp. plans to exit eight women's brands in the coming year, part of an effort to revive its struggling women's apparel business. Chief Executive Michelle Gass also said the women's department has a new leadership lineup following a restructuring that was announced last month. On Tuesday, Kohl's announced fourth-quarter earnings and sales that beat expectations and raised its dividend. The retailer will host its investor day on March 16, at which time it will provide more detail about which brands will be nixed and the repositioning of the brand portfolio. Some analysts think Target Corp. has taken share in this category that Kohl's has given up. Research groups maintained their cautious stance, with CFRA maintaining its sell rating and cutting its price target to $35 from $45 based on "weakening fundamentals, deteriorating competitive position, and lack of bold and differentiated blueprint for growth," among other factors. Wedbush also cut its price target to $35 from $45 but maintained its neutral stock rating. Analysts there say Kohl's women's and digital business is benefiting from the retailer's partnership with Amazon.com Inc. in which Kohl's will accept Amazon returns at its stores. Kohl's said on the earnings call that this partnership drove traffic, with new and younger customers coming through the doors, and positive comp sales during the quarter. Kohl's stock is down 3.2% in Wednesday trading, and down 45.5% over the last year. The S&P 500 index has gained 11% over the past 12 months.
