PC Fail: Twitter Shares Crash – Kellogg Announces Major Job Cuts, Facility Closures

Twitter Shares Crash Following Quarterly Earnings Report Release

 9 Feb 2017 by Lucas Nolan

Twitter shares crashed on Thursday following the release of the company’s 4th quarter earnings report.

CNBC reports that the social media company posted a fourth-quarter earnings report showing earnings of 16 cents per share on a revenue of $717 million. This fell short of analysts’ expectations, who had anticipated a higher revenue of approximately $740.1 million, according to an estimate from Thomson Reuters. Twitter had posted 12 cents per share on revenue of $479 million in 2016.

Twitter adjusted its guidance for the first quarter from the range of $75 million to $95 million, falling fall short of Wall Street’s expected estimate of $191.3 million. Twitter’s stock crashed a full 10 percent following the announcement of the earnings report. The company did report a 4% increase in active monthly users with 319 million users per month, up from 317 million users in 2016.

Twitter’s advertising revenue decreased from the year previously, with the company reporting revenue of $638 million. Of that, US revenue was down 5%, totaling $440 million, while international revenue totaled $277 million, an increase of 12% from 2016.

The company also reported a loss of $143.6 million in the 4th quarter, much worse than the reported $67.2 million loss in the same quarter for 2016, according to NASDAQ.

Twitter CEO Jack Dorsey discussed the poor performance of the company, saying, “While revenue growth continues to lag audience growth, we are applying the same focused approach that drove audience growth to our revenue product portfolio, focusing on our strengths and the real-time nature of our service. This will take time, but we’re moving fast to show results.”

Twitter’s Chief Financial Officer Anthony Noto claimed that ad-partners were happy with the company’s revenue growth: “Revenue growth will continue to lag audience growth due to the sales cycle, and could be further impacted by the escalating competition for digital advertising spending and our efforts to re-evaluate our revenue product feature portfolio.” The company also stated that they had made great progress with Twitter features on the platform such as the “Home Timeline.”

“We also improved the relevance of notifications to increase engagement and bring people back to Twitter. These changes improved retention for both monthly active and daily active usage, as well as increased Tweet impressions and time spent on the service,” the company stated.

It is believed by some that President Trump’s tweets may have a large effect on the platform in both positive and negative capacities. Analyst Richard Greenfield stated, “The incessant news flow from the Trump administration playing out on Twitter and the ensuing global reaction pushes Twitter users to be increasingly engaged with the platform.”

However, Richard Kramer of Arete Research told CNBC that the president’s tweeting may deter brands from advertising on Twitter due to fear of the current extreme polarization among Americans over politics. “I think whatever your political views, it’s clear that Trump is extremely divisive, and this isn’t really a positive for advertisers,” said Kramer.

Steve Ballmer, the former CEO of Microsoft and a Twitter shareholder, spoke to CNBC about Twitter’s performance and CEO Jack Dorsey. “Every time I talk to Jack, the message is, ‘We need more. More innovation. Move, move, move,’” said Ballmer, “Get the cost base right and move forward.”

“Running two companies is not the best idea,” said Ballmer referring to Jack Dorsey’s other company, Square. “And I’ll stand by the notion that Jack’s a very creative, innovative guy, as well evidenced by the fact that he started two amazing companies. … I give him credit for that, and I think now’s the time to focus down, at least from my perspective, on the stock I own.”

Breitbart Senior editor MILO predicted the death of Twitter following his suspension from the platform in 2016.

Editor’s note: this story has been updated to include reported losses for the quarter per NASDAQ.

Lucas Nolan is a reporter for Breitbart News covering issues of free speech and online censorship. Follow him on Twitter @LucasNolan or email him at lnolan@breitbart.com.


Kellogg Announces Major Job Cuts, Facility Closures, Sales Forecast Slashed

 9 Feb 2017 by Warner Todd Huston

Kellogg Company, the nation’s largest breakfast cereal manufacturer, is again announcing major cut backs and has slashed its sales forecast as profits continue to fall.

On February 9 the Michigan-based company cut its sales projections for the year after experiencing another quarterly decline.

The company imagined it would have flat sales but instead found a two percent decline.

“For the quarter ended Dec. 31, Kellogg reported a loss of $53 million, or 15 cents per share,” the Associated Press reported on Thursday. “Not including one-time items, it said it earned 92 cents per share. Analysts expected a profit of 85 cents per share. Total sales were $3.1 billion, slightly better than expected revenue of $3.07 billion.”

But that wasn’t the only cuts Kellogg Co. reported this week. The company also told investors and employees that big cuts in facilities and workers are coming.

On Wednesday the company announced it was closing a large number of distribution centers across the U.S. and that layoffs would result, WKBN reported.

Some insiders have said Kellogg’s is looking to cut sales representatives, merchandisers, and shuttering as many as 39 distribution centers.

Kellogg spokesman Kris Charles released a statement saying the move is a “difficult decision.”

While this is the right move for the company to achieve our long-term objectives, it was a difficult decision because of its impact on employees. On average, our distribution centers employ approximately 30 full-time workers.

As the distribution shifts from our network to our retailers’ networks, so too will the work. We’ve been actively engaged in conversations with some of our biggest retail partners who have expressed strong interest in hiring these employees for high-demand roles once the transition is complete. As a result, we are optimistic that our employees will find similar employment once this transition is complete so the net impact is impossible to quantify. As the affected employees work throughout the U.S., this change will not have a sizable impact on any one community.”

The closures and layoffs are to be completed by the fourth quarter of this year, the company said.

John Bryant, Kellogg Company Chairman, and CEO, said that the “retail landscape continues to change” and Kellogg has to keep up with that shift. “We have to change the way we reach and communicate with consumers. Because our customers’ and our own warehouse distribution systems have become more efficient and effective, we can now redeploy resources previously tied to DSD and direct them to the kinds of brand investments that drive greater demand with today’s consumers − ultimately growing our business and our retailers’ businesses,” he said.

This latest move is on top of the major cuts already announced this year. Early in January Kellogg Co. announced it was firing 250 workers.

The continued moves to scale back the company comes after Kellogg’s decided to cut its advertising with Breitbart News at the end of 2016, thereby snubbing Breitbart’s 45,000,000 readers.

In November, Kellogg’s noted that Breitbart News’s conservative readers are not “aligned with our values as a company.”

While the decision by Kellogg’s to cease advertising made virtually no revenue impact on Breitbart.com., it did represent an escalation in the war by companies like Target and Allstate against conservative customers whose values propelled Donald Trump into the White House.

Follow Warner Todd Huston on Twitter @warnerthuston or email the author at igcolonel@hotmail.com.



About ror1774

This Blog is for modern day Patriots who want to Reclaim Our Republic and put it on the right path with a foundation of our Constitution and our Creator God.
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