Breaking News
Nov 1, 2023
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The Federal Reserve held the fed funds rate range at a 22-year high between 5.25% and 5.50% for the second time in a row and left the door open for another rate hike to cool inflationary pressure.
The central bank's move was widely anticipated, but policymakers failed to provide a definite timetable for bringing down inflation to the target rate of 2%. -
Match Group Inc. plunged 16.8% after the dating services provider forecast fourth-quarter revenue that fell short of market expectations.
In the third quarter, revenue rose 8.9% from a year before to $881.6 million, and earnings per share eased to 57 cents from 58 cents a year ago.
Active paying subscribers declined 5% from the previous quarter to 15.7 million, and average subscriptions increased 15% from the previous quarter to $18.39.
During the quarter, the company repurchased $300 million of stock and a total of $445 million in the year-to-date, reducing its share count by 2.8% from the beginning of the year.
About $667 million is available under the $1 billion stock repurchase program, and the company declared its plan to return to shareholders at least 50% of its free cash flow. -
Advanced Micro Devices, Inc. jumped 4.4% to $102.64 after the advanced chip maker reported mixed quarterly results and offered a positive 2024 outlook for its data center segment.
Revenue in the third quarter increased 4% to $5.8 billion from $5.56 billion, net income soared more than threefold to $299 million from $66 million, and diluted earnings per share jumped to 18 cents from 4 cents a year ago.
Revenue in the data center segment from a year ago was flat at $1.6 billion; the client segment jumped 42% to $1.5 billion, driven by Ryzen mobile processor sales; the gaming segment revenue declined 8% to $1.5 billion; and embedded segment revenue fell 5% to $1.2 billion.
For the fourth quarter of 2023, AMD expects revenue to be approximately $6.1 billion, with a band of $300 million at the midpoint of the revenue range. This represents annual growth of approximately 9% and sequential growth of approximately 5%.
The chip maker expects a non-GAAP gross margin of approximately 51.5%. -
Caterpillar Inc. declined 6.4% to $226.71 after the industrial equipment maker reported better-than-expected third-quarter results.
Sales and revenues in the third quarter increased 12% to $16.8 billion from $15 billion, largely driven by price increases and volume growth.
Net income increased to $2.8 billion from $2.0 billion, and diluted earnings per share advanced to $5.45 from $3.87 a year ago.
Sales in the construction industry increased 12% to $7.0 billion, the resource industry advanced 9% to $3.3 billion, the energy and transportation industry jumped 11% to $6.9 billion, and financial services revenue soared 20% to $979 million.
Revenue in the third quarter rose to $16.8 billion, and adjusted earnings were $5.52 per share.
However, the company forecasted sales in the current quarter would be "slightly higher" than the same year ago, and the adjusted operating profit margin in the fourth quarter will be lower than in the third quarter.
The company estimated restructuring expenses of about $700 million for the full year and capital expenditures of about $1.5 billion in the period. -
JetBlue Airways Corporation plunged 14.6% to $3.59 after the regional airline reported lower-than-expected sales and a wider-than-expected loss in the third quarter.
Revenue in the quarter declined 8% to $2.35 billion from $2.2.6 billion, and the company swung to a net loss of $153 million from a profit of $57 million, and diluted earnings per share were ($0.46) compared to 18 cents a year ago.
The airline said revenue in the fourth quarter is expected to decline between 6.5% and 10.5% compared to a year ago, and adjusted loss per share is expected to range between 35 cents and 55 cents.
The airline also said revenue growth in the fourth quarter is likely to be driven by international travel demand, and added industry capacity is ahead of demand in the off-peak season. -
Arista Networks Inc. soared 14.5% to $201.15 after the networking gear maker reported better-than-expected quarterly results and lifted its sales outlook for the current quarter on the back of higher enterprise demand.
Revenue in the third quarter increased 28.3% to $1.5 billion, net income soared to $545.3 million from $354.0 million, and diluted earnings per share advanced to $1.72 from $1.13 a year ago.
The networking equipment maker forecasted fourth-quarter revenue between $1.50 billion and $1.55 billion, a non-GAAP gross margin of 63%, and a non-GAAP operating margin of 42%. -
Simon Property Group Inc. increased 1.4% to $106.80 after the real estate mall developer lifted its annual fund flow estimate and reported better-than-expected quarterly results.
Revenue in the quarter ending in September increased 7.2% to $1.41 billion from $1.35 billion, net income rose to $594 million from $539 million, and diluted earnings per share advanced to $1.82 from $1.65 a year ago.
Funds from operations were $1.201 billion, or $3.20 per diluted share, including the gain from SPARC stake sales, as compared to $1.099 billion, or $2.93 per diluted share, in the prior year.
The company lowered its stake in the SPARC joint venture to 33% from 50% and booked non-cash after-tax gains of $118.1 million.
The company increased quarterly dividends per share by 10 cents, or 5.6%, to $1.90 payable on December 29 to shareholders on record on December 15.
The company estimated full-year 2023 net income in the range of $6.67 and $6.77 per diluted share and funds from operations to be within a range of $12.15 to $12.25 per diluted share, an increase from the previous range of $11.85 and $11.95. -
Pfizer Inc. decreased 0.6% to $30.39 after the drugmaker recorded charges related to its COVID vaccine and COVID antiviral treatment Paxlovid.
The company took a $5.6 billion inventory write-down in the third quarter related to COVID products.
Revenue in the third quarter plunged 42% to $13.2 billion from $22.6 billion, and the company swung to a net loss of $2.4 billion from a profit of $8.6 billion, and diluted earnings per share declined to ($0.42) from $1.54 a year ago.
The pharmaceutical company guided full-year 2023 revenue to decline between 39% and 42% from a year ago, primarily because of the lower demand for COVID products. -
McDonald's Corp. gained 2.2% to $261.24 after the fast-food company reported third-quarter earnings ahead of market expectations.
Revenue in the quarter increased 4% to $5.9 billion from $5.7 billion, net income soared 63% to $1.8 billion from $1.1 billion, and diluted earnings per share jumped to $2.45 from $1.68 a year ago.
The fast food chain reported strong business metrics in the quarter.
Global comparable sales in the quarter increased 12.6%, reflecting strong comparable sales of 12.6% in each market segment; systemwide sales increased 9%; and consolidated operating income rose 10% from a year ago.
U.S. comparable sales jumped to 12.6% from 3.5% in the period a year ago after the company passed on higher prices to customers. -
Exxon Mobil Corp. decreased 1.9% to $105.55 after the energy giant reported a sharp decline in quarterly earnings.
Revenue in the third quarter decreased to $90.7 billion from $112.1 billion, net income dropped to $9.1 billion from $19.7 billion, and diluted earnings per share fell to $2.25 from $4.68 a year ago.
The company confirmed full-year capital expenditures near the top end of its previously announced range between $23 billion and $25 billion.
The sharp decline in earnings reflected a steep fall in crude oil and natural gas prices from a year ago.
The company declared a fourth-quarter cash dividend of 95 cents per share, an increase of 4 cents, payable on December 11 to shareholders on record on November 15.
The company has increased its annual dividend for 41 consecutive years.
The debt-to-capital ratio remained at 17%, and the net-debt-to-capital ratio was 4%, reflecting a period-end cash balance of $33.0 billion.
In the quarter, the company completed the sale of its assets and refinery in Thailand, generating $0.9 billion in cash proceeds, bringing the year-to-date divestment total to $3.1 billion.
In July, the company agreed to an all-stock transaction to acquire Denbury Inc., the owner and operator of one of the largest carbon dioxide pipeline networks, for $4.9 billion or in exchange for 45 million shares.
The transaction is expected to close in November, after the Denbury shareholder vote on October 31.
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