Despite reporting strong quarterly results, Novo Nordisk’s shares have experienced a pullback. Mizuho’s Jared Holz joined ‘Fast Money’ to provide his insights on the company’s performance and future prospects.
Results for: Earnings
Bausch Health Companies reported disappointing first-quarter results, with revenue and earnings falling short of estimates. The company’s shares came under pressure as investors grappled with concerns over the future of its Xifaxan drug and the delayed monetization of its Bausch + Lomb stake. Management reaffirmed their full-year outlook, but analysts remained cautious due to the ongoing litigation and uncertainty surrounding the Bausch + Lomb separation.
Apple, facing investor scrutiny due to underperforming stock performance, is expected to address its artificial intelligence (AI) and China market concerns during its fiscal second-quarter earnings announcement on Thursday. Analysts anticipate earnings of $1.50 per share and revenue of $90.01 billion. Despite recent challenges, some analysts maintain a positive outlook, citing potential upside from generative AI features in upcoming iPhone models and a possible rebound in Chinese demand. The market will be closely monitoring Apple’s guidance and China demand updates, as well as any announcements regarding AI strategy and the iPhone 16 release.
According to Bank of America analyst Christopher Nardone, footwear giant Crocs continues to perform exceptionally well, making it an attractive investment opportunity ahead of next week’s earnings release. The company’s strong international sales, particularly in Asia, are expected to drive significant growth in the coming quarters. Additionally, the recent appointment of Terence Reilly as president of the Heydude brand is seen as a positive step towards improving the brand’s performance.
DuPont (NYSE: DD) reported better-than-expected first quarter results on Wednesday, driven by growth in its electronics business and easing of destocking headwinds. Adjusted earnings per share (EPS) came in at 79 cents, outperforming both the LSEG estimate of 65 cents and management’s guidance of 63 cents to 65 cents. Organic sales declined 6% year over year to $2.9 billion, beating expectations of $2.8 billion, with the Electronics & Industrial business remaining a key driver of growth. Management raised its full-year outlook, citing continued recovery in the electronics market and a return to volume growth in its water and protection businesses.
AMD reported first-quarter earnings that exceeded Wall Street expectations, driven by strong growth in its Data Center segment and a recovery in its client business. However, the company’s gaming segment declined significantly. AMD expects continued growth in the current quarter, albeit at a more modest pace.
Shares of Koninklijke Philips N.V. (PHG) surged in pre-market trading today following the release of its impressive first-quarter results. The company also reached a resolution in the respironics personal injury and medical monitoring litigation in the US, with a settlement of $1.1 billion. As a result, PHG stock skyrocketed by 37.1% to $28.87 during pre-market hours.
Apart from Philips, numerous other companies experienced significant stock movements in the pre-market. Inno Holdings Inc. (INHD) saw a remarkable 33.8% gain, climbing to $0.8410. Ryde Group Ltd. (RYDE) followed closely with a 25.9% rise to $4.18 after facing an 8% dip on Friday. Akanda Corp. (AKAN) also performed well, advancing by 21.4% to $0.1250, continuing its trend from Friday when it gained over 12%.
Ocean Biomedical Inc. (OCEA) surged by 15.7% to $1.55, extending its 7% gain from Friday. Wisekey International Holding AG – ADR (WKEY) witnessed a 15.2% increase, reaching $2.36, attributed to its subsidiary, WISeSAT.Space, strengthening its partnership with the Swiss Armed Forces in the space domain.
SolarBank Corp (SUUN) gained 14.1% to $6.78, while Fulton Financial Corporation (FULT) jumped by 10.8% to $17.30. This follows the acquisition of Republic First Bancorp by Fulton Bank, a subsidiary of Fulton Financial Corp. ImmunityBio, Inc. (IBRX) shares increased by 10.6% to $8.13, buoyed by its Friday surge of around 44% after announcing favorable overall survival results from its QUILT 3.055 study.
Tesla, Inc. (TSLA) also saw a 7.3% pre-market gain, reaching $180.54. However, it was reported that Tesla plans to lay off 693 employees in Nevada as part of its earlier announced 10% workforce reduction. The company also increased the price of its new Model 3 Performance in the US by $1000 shortly after its launch.
On the declining side, Bakkt Holdings, Inc. (BKKT) plunged by 92.2% to $0.78 due to its recently announced 1-for-25 reverse stock split. Clever Leaves Holdings Inc. (CLVR) shares experienced a 56.8% drop to $1.78 following the announcement of voluntary delisting of common shares and SEC deregistration.
Addex Therapeutics Ltd (ADXN) faced a 50.3% decline to $7.99 in pre-market trading due to the lack of statistical significance in its ADX71149 Phase 2 epilepsy study. iSun, Inc. (ISUN) fell by 18.9% to $0.1362, and Boqii Holding Limited (BQ) dropped by 16.7% to $0.25 after gaining 6% on Friday.
NuZee, Inc. (NUZE) saw a 16% decline to $1.37, Cyclacel Pharmaceuticals, Inc. (CYCC) fell by 13.3% to $1.30, and Biodexa Pharmaceuticals Plc (BDRX) decreased by 12.3% to $1.14. Nature Wood Group Limited (NWGL) lost 11.8% to $4.45, and mF International Limited (MFI) declined by 10.3% to $2.09 following its previous 78% dip on Friday.
U.S. stocks rallied on Friday, with the Dow Jones Industrial Average rising over 150 points. Skechers U.S.A. (SKX) led the gains, with shares surging 16% after the company reported better-than-expected first-quarter earnings. Other notable gainers included Universal Logistics Holdings (ULH), Exponent (EXPO), Snap (SNAP), Tutor Perini Corporation (TPC), and U.S. Silica Holdings (SLCA).
Meta Platforms, the parent company of Facebook, reported strong first quarter earnings that surpassed market expectations. However, its shares plunged 15% in after-hours trading due to weaker-than-expected revenue guidance and increased spending on artificial intelligence (AI). The company’s revenue came in at $36.46 billion, representing a 27% increase year-over-year, while its earnings per share were $4.71, beating estimates. Meta’s advertising revenue remained a primary driver for sales, growing 27% to $35.64 billion. However, its Metaverse division, Reality Labs, continued to operate at a loss of $3.85 billion. For the second quarter, Meta provided weaker-than-anticipated revenue guidance, with an expected range between $36.5 and $39 billion, falling short of analysts’ forecasts. The company plans to increase its spending on AI projects and data center infrastructure, with its full-year 2024 capital expenditures estimated to be in the range of $35 billion to $40 billion. Meta’s CEO, Mark Zuckerberg, emphasized the company’s renewed focus on AI development and its ambition to compete with rivals like Microsoft and Alphabet in the AI race. The company’s recent launch of its Meta AI platform and its partnership with hardware companies for its AR headsets are seen as significant steps in this direction.
Members of NewJeans, the popular K-pop girl group, reportedly earned KRW5.2 billion (USD3.7 million) each in 2023, according to released ADOR documents. The collective payout of KRW26.1 billion (USD19 million) contributes to ADOR’s overall earnings of KRW110.3 billion (USD80 million) for the year. This growth has positioned ADOR as the third highest earning label under HYBE, following Big Hit Music and Pledis Entertainment. Despite an ongoing dispute between HYBE and ADOR, NewJeans is expected to release new music next month.