Breaking News
May 17, 2023
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Target Corp increased 1.7% to $159.62 after the retailer reported only 0.6% increase in revenue to $25.32 billion. Store traffic increased 0.9% on top of 3.9% in the quarter a year ago.
Net income declined 5.8% to $950 million from $1.0 billion and diluted earnings per share fell to $2.05 from $2.16 a year ago. -
Doximity Inc declined 5.5% to $32.02 after the company reported mixed quarterly results in the fiscal fourth quarter ending in March.
Revenue in the quartet increased 18% to $111.0 million from $97.0 million and net income dropped to $30.7 million from $36.7 million and diluted earnings per share declined to 14 cents from 20 cents a year ago.
The company forecasted revenue in the fiscal first quarter ending in June between $106.5 million and $107.5 million and for the full-year between $500 million and $506 million.
The company forecasted adjusted EBITDA in the June quarter between $39 million and $40.0 million and for the fiscal year 2024 between $216 million and $222 million. -
The Container Store Group Inc fell 5.9% to $2.55 after the specialty retailer reported a decline in revenue.
Revenue in the first quarter declined to $259.7 million from $356.7 million and the company swung to a net loss of $189.3 million from a profit of $23.2 million and diluted earnings per share was ($3.85) compared to 46 cents a year ago.
The retailer forecasted revenue in the fiscal first quarter ending in June between $200 million and $210 million and comparable sales to fall between 19% and 23%.
The company also estimated net loss between 16 cents and 10 cents per share.
For the fiscal year 2024, the retailer forecasted revenue between $885 million and $900 million and net income between 7 cents and 17 cents per share and comparable sales to decline in "mid to high teens." -
Home Depot Inc decreased 2.2% to $282.54 after the home improvement retailer said fiscal year revenue is expected to decline.
The home improvement chain blamed the sale decline on softening of lumber prices and poor weather conditions in several parts of the U.S.
Home Depot forecasted same store and comparable sales in 2023 to decrease between 2% and 5%.
Sales in the first quarter decreased 4.2% to $37.3 billion and comparable sales declined 4.5% and in the U.S. store fell 4.6%, operating margin rate between 14.0% and 14.3% and diluted earnings per share to fall between 7.0% and 13.0% a year ago. -
Nu Holdings Ltd increased 5.7% to $6.42 after the fintech company reported first-quarter revenue of $1.6 billion and adjusted earnings of $182.4 million.
Brazil-based online bank said revenue in the first quarter increased 85% to $1.6 billion from $877.2 million and the company swung to a net income of $141.8 million from a loss of $45.1 million a year ago.
The company added 4.5 million customers on its digital platform in the quarter and reached a total of 79.1 million. In Brazil, the company added 1.5 million net new customers on its digital platform.
Deposits in the quarter increased 34% on currency neutral basis to $15.8 billion and total loans surged 54% to $12.8 billion.
Net interest margin increased 2.2 percentage points and 7.2 percentage points from the previous year to a record high of 15.7%.
Nu's customers in Brazil now account for 46% of the country’s adult population, versus 44% in the previous quarter and in Mexico increased 52% to 3.2 million and in Colombia soared 200% to 635,000. -
Newmont Corporation increased 1.4% to $46.60 after the company and Australia-based Newcrest Mining Ltd reached a binding agreement to proceed with the proposal to acquire 100% of Newcrest.
Newmont agreed to pay 0.4 Newmont share for each Newcrest share held and shareholders will be entitled to receive a special dividend of up to US$1.0 a share just ahead of the completion of the deal.
After considering the full amount of the special dividend, the deal value Newcrest Mining at A$29.27 a share an implied equity value of A$26.2 billion and enterprise value for Newcrest of A$28.8 billion
Newcrest shareholders will own 31% of the combined group and value the company at a 30.4% premium to Newcrest’s closing price of A$22.45 per share on February 3, before the first announcement of the deal. -
Magellan Midstream Partners LP jumped 13.6% to $63.04 after the company agreed to be acquired by OneOk, Inc for about $18.8 billion.
OneOk, Inc declined 8.5% to $58.18.
OneOk agreed to pay $25.0 in cash and 0.6670 shares of ONEOK common stock for each outstanding Magellan common unit, representing a current implied value to each Magellan unitholder of $67.50 per unit, a 22% premium, based on May 12 closing prices.
The transaction is expected to be earnings per share accretive beginning in 2024 with EPS accretion of 3% to 7% per year from 2025 through 2027, and free cash flow per share accretion averaging more than 20% from 2024 through 2027.
The combined company is estimated to generate an average annual $1.0 billion in free cash flow in the first four years following the close of the transaction. -
JD.com Inc declined 5% to $35.74 after the China-based e-commerce giant reported better-than-expected quarterly revenue and earnings.
Net revenue in the first quarter increased 1.4% to RMB 243.0 billion or $135.4 billion and net service revenue increased 34% to RMB47.4 billion or US$6.9 billion.
Net income attributable to the company's ordinary shareholders for the first quarter was RMB 6.3 billion or $0.9 billion, compared to a net loss of RMB 3.0 billion for the same period last year.
Diluted net income per ADS for the first quarter was RMB3.93 or $0.57, compared to a diluted net loss of RMB 1.92 for the first quarter of 2022.
The company said current chief executive Xu Lei will step down in June in a surprise corporate reshuffle and said Xu will be replaced by chief financial officer Sandy Ran Xu.
Amid rising competition in its domestic market and weak post-Covid recovery, JD.com stock has dropped 25% in the last twelve months in Hong Kong trading. -
PacWest Bancorp plunged 19.5% to $4.88 after the regional bank said deposits declined 9.5% for the week ended May 5.
In the first quarter, total interest income increased to $517.7 million from $322.9 million and the company swung to a net loss of $1.2 billion from a profit of $120.1 million and diluted earnings per share was ($10.22) from $1.01 a year ago.
The goodwill impairment charge of $1.38 billion led to a net loss $1.2 billion in the quarter.
The goodwill charge is a non-cash charge and had no impact on bank's regulatory capital ratios, cash flows, or liquidity position.
Total deposits decreased by $5.7 billion or 16.9% in the first quarter and most of the decrease in deposits was from uninsured deposits, which resulted in the percentage of insured deposits to total deposits to increase from 48% at December 31, 2022 to 71% of total deposits at March 31, 2023.
Following the closure and sale of First Republic Bank on May 1, during the week ended May 5, 2023, deposits declined approximately 9.5%, with a majority of that decline occurring on May 4th and May 5th after the news reports on the afternoon of May 3rd when the company was the focus of financial news across the nation. -
Unity Software Inc rose 11.4% to $31.95 after the video game software developer lifted its revenue estimate for 2023.
Revenue jumped 56% to $500.3 million from $320.1 million and net loss expanded to $253.7 million from $177.5 million and diluted loss per share rose to 67 cents from 60 cents a year ago.
Disney theme parks, products and experiences revenue in the first quarter increased 17% to $7.7 billion from $6.6 billion in the previous year's comparable quarter.
Operating income in the segment increased 23% to $2.1 billion from $1.78 billion in the first quarter a year ago.
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