What companies are saying about supply chain disruptions

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The Delta variant is disrupting global supply chains and companies are starting to talk about it. Here are five that RBC Capital Markets strategists have highlighted due to concerns about supply constraints.

Albemarle

: In its recent call for results, the producer of specialty chemicals cited a series of places where it cannot get its inputs: China, Thailand, UK. and eastern Australia. “We’re a bit stuck,” CEO Jerry Masters said. The stock is down 11% from its all-time high this month.

Parker-Hannifin

: The motion and control systems maker sees supply chain issues and other uncertainties from Covid “around the world,” CEO Thomas Williams said on an Aug. 4 conference call. The stock is down just over 8% from its all-time high, reached in mid-May.

Aptiv

: The shutdown of auto factories has been a particular problem for the supply chains of this auto parts maker. “There are clearly inefficiencies now seeping into our factories as customers shut down for periods of time,” said Joseph Massaro, CFO. Aptiv stock fell 6.5% from its all-time high reached this month.

Western digital

: “We must continue to work on the Covid situation from a plant and supply chain perspective,” CFO Robert Eulau said during the August 4 call for results. The stock is down 20% from its 2021 high, reached in early June.

Arista Networks

: The networking company’s chief financial officer, Ita Brennan, said in his quarterly call that shipments were down as the company “continued to cautiously manage supply chain shortages across the globe. ‘industry”. The stock is down 4.7% from its all-time high, reached this month.

Next week

Monday 23/08

JD.com,

Madison Square Garden Entertainment, and

Palo Alto Networks

publish quarterly results.

The national association of Realtors reports sales of existing homes for July. The consensus estimate is for a seasonally adjusted annual rate of 5.83 million homes sold, roughly the same with June’s figure. Sales of existing homes have slowed since the start of the year as prices continue to soar. In June, the median home price was a record high $ 363,300, up 23.4% year over year.


IHS Markit

press releases both its manufacturing purchasing managers index and the services PMI for August. Economists are forecasting a reading of 63.1 for the manufacturing PMI and a reading of 59.8 for the services PMI. The two figures would be roughly equal with the data for July.

Tuesday 24/8

Advanced auto parts,

Bank of Montreal,

Bank of Nova Scotia,

Best buy,

Intuit,

Medtronic,

and

Toll brothers

announce the winnings.

The census office announces new sales of single-family homes for July. Expectations are for a seasonally adjusted annual rate of 700,000 new homes sold, a 3.6% month-over-month increase from June. Like existing home sales, new home sales are down sharply from the start of the year.

Wednesday 25/08

Autodesk,

NetApp,

Royal Bank of Canada,

Salesforce.com,

Snowflake, Splunk and Ulta Beauty publish their quarterly results.

The census office publishes durable goods report for July. Consensus calls for a 0.8% monthly gain in new durable manufactured goods orders to $ 260 billion. Excluding transportation, new orders are expected to rise 0.9%, after increasing 0.5% in June.

Thursday 8/26

The Federal Reserve Bank of Kansas City holds its annual Economic Policy Symposium in Jackson Hole, Wyo. This year’s theme is “Macroeconomic Policy in an Unequal Economy”. The confab runs until August 28.

Burlington Stores,

Canadian Imperial Bank of Commerce,

Dell Technologies,

General Dollar,

Dollar tree,

Difference,

Jm smucker,

HP Inc.,

Marvell technology,

Interactive Platoon,

Toronto-Dominion Bank,

and VMware host conference calls to discuss revenue.

The Office of the Economy Analysis reports its second estimate of gross domestic product for the second quarter. Economists forecast a seasonally adjusted annual growth rate of 6.5%, unchanged from the BEA’s advanced estimate from late July.

Friday 8/27

The BEA publishes the July Personal Income and Expense Report. Consensus estimates predict that personal income and spending will increase 0.5% month over month. This compares to increases of 0.1% and 1%, respectively, in June. The PCE price index, the Federal Reserve’s preferred inflation indicator, is expected to jump 4.2% year-on-year, after rising 4.0% in June.

Write to Jacob Sonenshine at [email protected]

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