Tag: Margins

Capitalism Is Broken If Record Profit Margins Don’t Revert

Commentary According to British investor and co-founder of the Boston-based asset management firm GMO, Jeremy Grantham, “Profit margins are probably the most mean-reverting series in finance. And if profit margins do not mean-revert, then something has gone badly wrong with capitalism.” While there are certainly many complaints that capitalism is “broken,” such is not the case. Yes,…


Dynatrace Shares Drop Despite Q3 Beat; Margin Contracts

Dynatrace Inc. reported third-quarter FY22 revenue growth of 32 percent year-on-year to $240.8 million, beating the consensus of $234.4 million. Total ARR increased 29 percent Y/Y to $930 million. Revenues from Subscription rose 33 percent Y/Y to $226 million. Margins The non-GAAP operating margin contracted 400 basis points to 25 percent. Non-GAAP EPS of $0.18 beat…


Boohoo’s Margins Dented by Higher Freight and Labour Costs

LONDON—British online fashion retailer Boohoo warned on Thursday that full year profit margins will be lower than its previous guidance due to a rise in freight costs in its supply chain and higher wages for its distribution centre workers. Shares in the group dropped 11 percent, extending year-on-year losses to 37 percent after it said…


Investors Watch US Companies’ Record Profit Margins as Costs Rise Further

NEW YORK—U.S. companies have retained strong profit margins through the pandemic because they have cut costs and passed along high prices to customers. The question is: How long can this go on? With inflation still strong, the ability for companies to keep margins at record levels is being closely watched by some investors and strategists…