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In the news: Fed questions JPMorgan and Goldman Capital plans, weak guidance from Krispy Kreme and Ulta

Headlines this morning include bad news for JPMorgan and Goldman Sachs, Boeing's new battery plans, weak guidance from Krispy Kreme and Ulta Salon and Cosmetics.

JPMorgan and Goldman Sachs
The Federal Reserve found problems with capital plans submitted by JP Morgan (JPM) and Goldman Sachs (GS). While both banks received passing grades from the central bank's stress tests, questions linger about their ability to adequately estimate losses during a severe economic downturn. JP Morgan said it received approval to repurchase $6 billion in stock and raise its quarterly dividend to 38 cents, but those figures could be reduced after it submits a revised capital plan to the Federal Reserve. Goldman Sachs will also resubmit its capital plan. Fourteen other banks, including Bank of America (BAC) and Citigroup (C) had their capital plans approved, while capital plans submitted by BB&T (BBT) and Ally Financial (GJM) were rejected.

Boeing
Aircraft maker Boeing (BA) said its 787 Dreamliner could be flying again in weeks with a newly fortified battery that it hopes will reduce the risk of fire. The new battery pack will be incased in a steel box, packed with insulation, heat-resistant material and spacers. The box will also have new drain holes to reduce moisture and vents to send gases produced by overheating directly into the atmosphere. Japanese regulators said they could not say when flights will restart and called the comments from Boeing “inappropriate.”

Krispy Kreme
Doughnut-maker Krispy Kreme (KKD) earned 7 cents per share for its fourth fiscal quarter, or 11 cents per share on an adjusted basis. Revenue was $118.1 million. Wall Street had expected earnings of 12 cents per share on $117 million in revenue. The company forecast full-year earnings of 53 to 57 cetns per share for fiscal 2014, missing estimates for 58 cents.

Ulta Salon, Cosmetics & Frangrance
Beauty-supply store Ulta Salon (ULTA) said it expects to earn between 60 and 63 cents per share on revenue between $568 million and $577 million in the first quarter. Analysts had e3xpected earnings of 72 cents on revenue of $578.9 million.

 

Bobby Raines

Bobby Raines is the Managing Editor of the Market Intelligence Center. He has degrees in Mass Communications and History from Emory & Henry College. Bobby worked at a mid-sized daily newspaper before making a switch to covering the financial industry full time in the years leading up to the financial crisis. He has been a member of the Fresh Brewed Media team since 2011 and has served as a writer and analyst. You can write to him at braines@marketintelligencecenter.com or follow him on Twitter: @BRatMICenter.