profit margins

Is Corporate America Too Focused on Profit Margins?

I recently penned a column pointing out that when America "lost" the TV manufacturing industry to Japan, it wasn't necessarily a bad thing, because the business has become a low-margin money loser. A lot of readers disagreed.

Coffee Price Hikes Make Starbucks Stock Look Costly

Starbucks is hiking the price of its packaged coffee by 17% to compensate for a steep increase in Arabica coffee prices. Customers habituated to Starbucks coffee might keep splurging on its products, but Trefis analysts believe the passing on of its costs will affect Starbucks' top line.

Earnings Season: Harbinger to Next Round of Layoffs?

Wall Street will watch second quarter earnings for telltale signs that the economy has slowed or that corporate margins are even tighter than is feared. But the ones reporting negative outlooks are likely to go back to the same old solution they used so often in recent years: layoffs.

Will Stock Market Reverse Course in the Second Half?

The S&P 500 was up by only 4% in the first half of 2011, and it fell about 1% in the second quarter. Will it end there? A sell-off may be about to begin that would take the index lower for the full year. Here are half a dozen reasons why one of history's most impressive stock market runs may have ended.

Could the S&P 500 Fall Another 20% in 2011?

After the losses of the past week, it seems hard to imagine that the S&P 500 has much further to decline. But the index took a fall to near 1,000 as recently as last July, and the issues that punished the markets then are looming over the economy again -- or perhaps, still.

Rising Food Costs Will Eat Into McDonald's Profits

McDonald's expects food costs to rise between 4% and 4.5% in the U.S. and Europe this year, which puts the fast food leader between a rock and a hard place: Leave prices the same, and profit margins suffer. Raise them, and cash-strapped customers may start foregoing their Big Macs.

As Commodities Spike, Inflation Worries Grow

As consumer and investor confidence shows signs of mending, rekindled fears of inflation are on the rise as well. Faced with higher costs and limited pricing power, many companies may have to hammer profit margins -- a possibility that has already started to take a toll on stocks.

Why Netflix's Epix Deal Will Help It Find a Happy Ending

Netflix's deal with Epix to add movies from Paramount, Lionsgate and MGM to its Watch Instantly service's inventory drew bearish reactions from analysts and investors. But the needed deal will help Netflix gain a winning position in the long run.

Supervalu Earnings: Grocer's Woes Continue

Grocery chain Supervalu reported a net income of 31 cents per share this morning for the last quarter, which ended May 10, a 40% decline year-over-year. An after-tax charge of 12 cents per share that brought the figure down, but the quarter was still a disappointment.