The cannabis sector faced mixed economic fortunes during the first quarter of 2024, with an overall decline in sales across numerous states. Multi-state operators (MSOs) adjusted their operations accordingly, and notable movements were observed in Arizona, Connecticut, Florida, and other key markets.
Spotify Technology SA (SPOT) reported strong first-quarter 2024 financial results, with revenue exceeding consensus estimates and EPS surpassing expectations. The positive earnings report sent the stock price soaring during Tuesday’s trading session. Goldman Sachs analyst Eric Sheridan maintained a Neutral rating on SPOT but highlighted the company’s potential for further positive estimate revisions based on its continued margin momentum.
MSCI’s stock price experienced a significant drop of 13.2% in late morning trading on Tuesday following the release of its first-quarter 2024 financial results. The company’s profitability was impacted by higher expenses, which overshadowed higher-than-expected adjusted EPS. Operating revenue slightly missed analyst estimates, while total operating expenses surged by 22.7% year-over-year. Despite these challenges, MSCI reported growth in its total run rate and recurring subscription run rate. The company also reaffirmed its outlook for fiscal year 2024.
Halliburton Company (HAL) reported revenue growth of 2.2% year-over-year to $5.804 billion in the first quarter of 2024, exceeding analysts’ expectations of $5.668 billion. The company’s diverse global service improvements and higher product sales contributed to a 3% increase in operating income to $688 million. Drilling and Evaluation revenue rose 7% to $2.4 billion, driven by increased drilling services in the Middle East and North America. International revenue grew by 12%, with particularly strong growth in Latin America (+21%) and Europe/Africa (+10%). Halliburton’s adjusted EPS was $0.76, beating the consensus estimate of $0.74. The company expects continued revenue growth in the low double digits for 2024.
GE Aerospace reported a strong first quarter of 2024, with adjusted revenue growth of 15% year-over-year to $8.1 billion and orders up 34% to $11 billion. The company saw increased orders in Commercial Engines & Services and Defense & Propulsion Technologies, driven by pricing, spare parts volume, and higher deliveries in widebody and defense sectors. Consolidated revenue, including GE Vernova Inc. (GEV), grew 11% to $16.1 billion and on an adjusted basis, +10% to $15.2 billion. Total orders increased 14% to $20.1 billion. GE Aerospace’s profit margin expanded 140 bps to 19.1%. GE completed the separation of GE Vernova on April 2 and received proceeds of $2.6 billion from the monetization of a portion of its shares in GE HealthCare Technologies Inc. (GEHC). The company expects adjusted revenue growth in low double digits, operating profit of $6.2 billion-$6.6 billion, adjusted EPS of $3.80-$4.05, and Free Cash Flow to be >$5B, >100% conversion. GE shares are trading higher by 4.4% at $156.80 premarket.
Washington Trust Bancorp, Inc. (WASH) reported a net income of $10.9 million and net interest income of $31.7 million for Q1 2024. Non-interest income showed a significant 29% increase from the previous quarter. Key takeaways include a focus on deposit growth and asset quality improvement, along with the maintenance of dividend payouts despite lower capital ratios and the possibility of a deal that could reduce a non-accrual loan by half. The company plans to invest in technology to drive deposit growth and aims for a 1-2% increase in deposits for the year.
Packaging Corporation of America’s first-quarter 2024 earnings surpassed analyst expectations, with adjusted EPS of $1.72. Revenue of $1.98 billion also exceeded estimates. The company’s Packaging segment saw a 9.2% increase in corrugated products shipments, driving the revenue growth. However, higher costs and lower prices in both the Packaging and Paper segments impacted earnings, resulting in a decline in adjusted EPS compared to the previous year. The company provided second-quarter earnings guidance of $2.07 per share, based on expectations of continued strong demand.
Ferrari released its financial results for the first quarter of 2024. The results will be released on Tuesday, May 7, 2024. A live audio webcast and conference call will begin at 3:00 p.m. CEST / 9:00 a.m. EDT on the same day. The presentation will be available on Ferrari’s corporate website, and a replay will be archived for two weeks after the call.
Bladex, the Latin American bank, reported a Q1 2024 net income of $51.3 million, a 39% increase from the previous year. The bank’s credit portfolio and deposits grew by 12% and 32%, respectively. Bladex is transitioning to the expansion phase of its strategic plan, which includes the selection of two key IT platforms to enhance its product suite. Despite increased expenses, the bank remains optimistic about continued growth in 2024 and beyond.
