The fresh week appears to be off to a good start, as Asian stocks have bounced back and Dow Futures are projecting a decent gain as concerns over North Korean nuclear aggression have begun to subside for the moment.
The earnings slate is starting to thin, though Monday morning is still chock full of headlines. Finding themselves in the spotlight today are Apple Inc. (NASDAQ:AAPL), Amazon.com, Inc. (NASDAQ:AMZN) and VF Corp (NYSE:VFC).
Here’s what you need to know.
Apple Inc. (AAPL)
At least a few iPhone 8 rumors were confirmed over the weekend.
Forbes‘ Gordon Kelly received a prototype of the device, which is considerably larger than the iPhone 7, as many expected. It has a 5.8-inch screen and rear dual cameras that are lined vertically for symmetry’s sake. The cameras will also help improve its augmented reality capabilities when used in landscape mode.
The AAPL device will have wireless charging as an option, and the headphone jack is not back, forcing users to buy the company’s special earbuds to listen to music.
Other rumors claim that the company will get rid of Touch ID and stick to Face ID, which allows you to enter the device through facial recognition software.
Said Kelly: “For the record I also understand almost every point of the Bloomberg/Kuo iPhone 8 25 feature leak is indeed correct. These two sources have been on fire.”
Apple is expected to release the iPhone 8 sometime over the next few months. AAPL stock is up 36% year-to-date.
Amazon.com, Inc. (AMZN)
AMZN says it will be adopting a new rule starting in the first quarter of 2018 governing how it recognizes revenues of Amazon-made electronic devices.
An Accounting Standards Update from the Financial Accounting Standards Board is expected to change practices for a wide array of retailers. Amazon wrote:
“As we evaluate the impact of this ASU, the more significant changes that we have identified relate to the timing of when we recognize revenue and the gross amount of revenue that we present. These timing changes will include Amazon-branded electronic devices sold through retailers, which will be recognized upon sale to the retailer rather than to end customers, and the unredeemed portion of our gift cards, which we will begin to recognize over the expected customer redemption period, which is substantially within nine months, rather than waiting until gift cards expire or when the likelihood of redemption becomes remote, generally two years from the date of issuance. In addition, certain advertising services will be classified as revenue rather than a reduction in cost of sales.”
Retailers from Target Corporation (NYSE:TGT) to Nordstrom, Inc. (NYSE:JWN) to even restaurants such as Starbucks Corporation (NASDAQ:SBUX) have announced their plans to begin complying with the ASU over the next 18 months or so. They’ve cited various effects on their accounting policies, including how loyalty programs and gift cards are factored in.
VF Corp (VFC)
VFC shares are trickling higher this morning after the clothing manufacturer announced that it would acquire Dickies, Workrite and Kodiak brand holder Williamson-Dickie Mfg for $820 million. VF Corp will bring those brands into the fold of its already wide portfolio that includes Vans, The North Face, Eastpak, Wrangler and Timberland.
The combined company boasts $1.7 billion in annual revenues, and VF Corp says the acquisition will add $1 billion to its revenues by 2021.
As a result, VF Corp has updated its guidance for full-year 2017. Sales are now expected to reach $11.85 billion, versus previous guidance for $11.65 billion. Meanwhile, adjusted earnings should decline 1% from full-year 2016 profits of $2.98. Wall Street’s expectations are for earnings of $2.96 per share on revenues of $11.68 billion.
VFC stock is having a Street-beating year, up about 15% year-to-date versus roughly 9% for the S&P 500.