Diamonds and Dogs

1/30/19

Apple (AAPL) and Boeing (BA) are lifting the averages. Apple is up 5% while Boeing is up 7% not far from an all-time high. Apple beat reduced earnings estimates as sales fell 4% and the company reduced first quarter guidance. The good news is Apple remains a cash cow with $245 billion on the books. Boeing is firing on all cylinders as the company easily beat as sales rose 14% to $28.34 billion, surpassing the $100 billion mark for the first time in its 102-year history. Boeing also raised guidance and sales for the year. Boeing is forecasting operating cash flow between $17 billion and $17.5 billion in 2019, compared with cash flow of $15.32 billion in 2018.

Tupperware (TUP) has a leak. The stock is down 29% to a 10 year low following earnings. The earnings were actually in-line, but sales fell 14.1% to $505.9 million. Tupperware also lowered full year guidance and cut the dividend to 27 cents from 68 cents. Tupperware is blaming China, but they have a problem everywhere. Sales metrics for the quarter included sales declines of 7% year/year in North America; 22% in South America; 12% in Europe; and 16% in Asia Pacific, including a 45% decline in India and 41% in Indonesia. Other than that, the company is doing great.