ICON Plc (ICLR) has revised its 2024 outlook, adjusting revenue and adjusted EPS ranges. Revenue is now projected to be $8.48B-$8.72B, while adjusted EPS is expected to be $14.65-$15.15. In Q1 2024, ICON reported a miss on diluted EPS but met revenue expectations. Net income grew by ~61% year-over-year to ~$187.4M, with diluted EPS at $2.25 compared to $1.41 in Q1 2023. Despite the EPS miss, ICON’s acquisition of PRA continues to generate synergies, impacting the company’s overall performance.
The federal government’s new EV tax credit, designed to attract foreign investment, has landed Honda in Ontario. However, experts argue that the credit is too narrow and demanding, unlikely to attract other investors or spur home-grown innovation. Despite the government’s enthusiasm for clean growth, the EV credit fails to support a broad range of firms and investments.
A $200 million public-private fund in New York, intended to support cannabis dispensaries run by those impacted by the war on drugs, is facing scrutiny after an investigation revealed a lopsided deal favoring the private equity firm Chicago Atlantic. The investigation raises concerns about the state’s social equity goals, with critics deeming the deal detrimental to the state and prospective dispensary owners.
UPS, the $124 billion carrier, has struggled since inflation began to accelerate in early 2021. Data shows UPS is down 10.44% since May 2021, while the S&P 500 has gained 25.75% during the same period. Management’s guidance suggests little to no revenue growth this year, with rising costs and declining shipping volumes. The company’s aggressive capital expenditure plans and reliance on automation fail to address its dependence on unionized labor and the challenges posed by competitors like Amazon. Analysts predict only 4-5% revenue growth for UPS over the next several years, yet the stock trades at a growth multiple of nearly 18x predicted forward GAAP earnings. Given its slowing revenue, declining EPS, and valuation concerns, UPS should not be trading at more than a multiple of 12-14x expected forward earnings.
Chinese EV maker BYD is expanding its premium Denza brand with the introduction of a new sedan at the Beijing auto show. The Denza Z9GT will take on established luxury brands like Mercedes-Benz, which had previously withdrawn from the brand’s development. Despite a saturated domestic market and global scrutiny of Chinese EVs, BYD believes that technology will define luxury in the electric vehicle space.
Walmart has announced the closure of another store, located in the Fair Park neighborhood of Milwaukee, Wisconsin. The store will shut its doors for the final time on May 17, affecting 105 employees. The closure is part of a trend of store closures by Walmart this year, with six other locations already closed nationwide. Walmart has other locations in the Milwaukee area, including a Supercenter in West Milwaukee, and employees have been encouraged to apply for positions at other stores. The closure of this store is a reminder of the challenges facing many brick-and-mortar retailers in the face of online competition and changing consumer preferences.
A U.S. appeals court has revived a lawsuit against Whole Foods, alleging that it illegally fired an employee, Savannah Kinzer, for refusing to remove her “Black Lives Matter” face mask and protesting racism within the company. The court ruled that Kinzer’s firing may have deviated from the company’s disciplinary process, while dismissing similar claims from two other employees due to lack of evidence. The appeals court reversed a previous dismissal of Kinzer’s case, which will now be heard by a jury.
Meta CEO Mark Zuckerberg earned a modest $1 salary in 2023, similar to previous years. However, he received a substantial $24.4 million in ‘other compensation,’ primarily for his personal security. The company increased Zuckerberg’s pre-tax security allowance by 40% during his ‘year of efficiency,’ which saw Meta lay off 11,000 employees. The median salary for Meta’s employees excluding Zuckerberg was $379,050. Zuckerberg’s wealth has soared by over $47 billion this year, making him the third richest person globally, with a net worth of $176 billion.
Asian markets are facing uncertainty due to the depreciation of currencies against the U.S. dollar. The Bank of Japan’s two-day policy meeting, South Korea’s GDP data, Malaysian inflation figures, and trade figures from Vietnam and Hong Kong will be key market movers. Concerns about the weakening yen could prompt intervention by the Japanese authorities. Indonesia’s recent rate hike has also raised eyebrows. Meanwhile, geopolitical tensions between the United States and China persist, with the U.S. Senate voting to potentially ban TikTok.
In a move that could become one of the largest deals of the year, mining giant BHP is reportedly considering a potential takeover of London-listed Anglo American. The news comes as Anglo American shares have fallen 12% in the past year, with the company currently valued at £27 billion ($52 billion). BHP, which trades in London and Sydney, has a market value of approximately $230 billion.
