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May 15, 2023
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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. -
Walt Disney Company declined 8.8% to $92.29 after the theme park operator and media company reported a significant decline in streaming subscribers even as quarterly loss in the division improved.
Revenue in the first quarter increased 13% to $21.8 billion from $19.2 billion and net income from continuing operations more than doubled to $1.2 billion from $470 million and diluted earnings per share rose to 69 cents from 26 cents a year ago.
Disney television networks segment revenue declined 7% to $6.6 billion from $7.1 billion and streaming services revenue increased 12% to $5.5 billion from $4.9 billion a year ago.
Disney streaming services subscribers in the U.S. and Canada declined to 46.3 million from 46.6 million and international subscribers including Hotstar edged up 2% to 58.6 million from 57.7 million a year ago.
ESPN+ subscriber base increased 2% to 25.3 million from 24.9 million in the previous year's quarter. -
Airbnb Inc said revenue in the first quarter increased 20% to $1.8 billion from $1.5 billion and gross booking value soared 19% to $20.4 billion.
The online booking company swung to a profit of $117 million compared to a loss of $19 million and diluted earnings per share was 18 cents compared to (3 cents) a year ago.
Nights and experiences booked on the platform increased 19% to 121.1 million.
Nights and experiences revenue, in the U.S., which is 48% of total revenue, increased 13%, Europe, Middle East and North Africa rose 21% and Latin America advanced 22% and Asia Pacific surged 48% from a year ago.
Brazil and Germany are two of the fastest growing markets. Brazil and Germany grew gross nights booked on an origin basis by 114% and 70% in the quarter, respectively, compared to the quarter in 2019. -
Consumer price index in April declined to 4.9% from a year ago after rising at 5.0% in March, the Bureau of Labor Statistics reported Wednesday.
On a monthly basis, seasonally adjusted inflation index accelerated to 0.4% in April after rising 0.1% in March.
The index for shelter was the largest contributor to the monthly all items increase, followed by increases in the index for used cars and trucks and the index for gasoline.
The annual pace of shelter inflation edged slightly down to 8.1% from 8.2% in the previous month, used car and trucks prices declined 6.6% after falling 11.6%, food prices eased to 7.7% from 8.5% and energy costs fell 5.1% from 6.4% after gasoline prices dropped 12.2% and fuel costs declined 20.2%.
Core prices, which excludes food and energy, rose 5.5% from a year ago and 0.4% from the previous month. -
Dutch Bros Inc declined 7.3% to $30.33 after the coffee chain operator reported weaker-than-expected same store sales and total revenue in the first quarter.
Company-operated store revenues soared 33.0% to $173.2 million, as compared to $130.2 million in the same period of 2022.
Total revenue in the first quarter increased 29.6% to $197.2 million from $152..2 million and net loss shrank to $9.4 million from $16.3 million and diluted loss per share fell to 7 cents from 10 cents a year ago.
In the quarter, the company opened 45 new stores, 42 of which were company-operated, across 9 states.
Systemwide same store sales declined 2% and company owned same stores sales fell 3.% in the quarter. -
GoodRx Holdings Inc decreased 5.1% to $4.45 after the company reported quarterly results that were ahead of market's expectations but the online pharmacy estimated weaker-than-expected second quarter and full-year results.
Revenue declined to $183.9 million from $203.3 million and the company swung to a net loss of $3.3 million from a profit of $12.3 million and diluted earnings per share was ($0.01) compared to 3 cents a year ago.
Net loss in the quarter was impacted by $25.5 million of stock-based compensation expense, $6.9 million of which related to the non-recurring awards granted to co-founders in connection with the company's initial public offering.
As of the end of March, GoodRx had cash and cash equivalents of $761.1 million and total outstanding debt of $665.3 million.
May 12, 2023
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May 10, 2023