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Medtronic predicts sales of cardiac and diabetes equipment, exceeds expectations
just now
Medtronic PLC (MDT) stock rose Tuesday after the medical technology company reported better-than-expected results and raised guidance on increased demand for cardiac and diabetes equipment.
The company reported third-quarter fiscal 2024 earnings per share (EPS) of $1.30 and revenue of $8.09 billion, an increase of 4.7%. Both exceeded expectations.
Sales of the Heart Devices division, the company’s largest source of revenue, rose 6.1% to $2.93 billion. Diabetes division sales increased by 12.3% to $640 million. These also exceeded expectations.
Medtronic now expects full-year EPS in the range of $5.19 to $5.21, up from its previous guidance of $5.13 to $5.19.
Medtronic shares rose 1.3% to $85.20 Tuesday afternoon.
-Bill McCall
Expeditors International leads S&P 500 index decline after disappointing sales and profits
38 minutes ago
Shares of Expeditors International of Washington (EXPD) rose on Tuesday as economic and geopolitical uncertainties weighed on business, with the freight and logistics company reporting lower sales and profit estimates for the fourth quarter of 2023. The market price fell sharply after the company reported a decline in sales.
Expeditors International reported net income of $159 million, or $1.09 per share, down 21% from the year-ago period. Sales fell 34% to $2.3 billion, weighed down by weak demand and prices.
“While the maritime and aviation markets are recovering from the massive disruption caused by the global COVID-19 pandemic, the current Middle East and Red Sea conflicts have caused “We continue to face further market uncertainty.” Jeffrey Masser.
The company said it is working to further reduce costs throughout 2023 through headcount reductions. “Compensation, our largest and most variable expense, is down 20% year over year, but almost everything else is higher,” said Chief Financial Officer Bradley Powell. . “We remain focused on further aligning our headcount and overhead costs to lower levels of trade and volumes.”
Expeditors stock fell more than 7% Tuesday afternoon, making it the worst performing stock in the S&P 500. With Tuesday’s decline, the stock has risen about 3% in the past 12 months.
Home Depot continues to face headwinds as high interest rates hit high spending
1 hour 21 minutes ago
Home Depot (HD) on Tuesday reported lower sales and profits for the fourth quarter of fiscal 2023 as customers held back on home improvement spending in a high interest rate environment.
The home improvement retailer reported revenue for the quarter that ended Jan. 28 was $34.79 billion, down 2.9% from a year earlier, and diluted earnings per share were down 14.5% to $2.82. Sales and bottom line numbers beat analysts’ expectations, but the company’s forecast for a 1% decline in same-store sales was lower than expected.
Chief Financial Officer Richard MacPhail said on a call with analysts that while there are signs that the U.S. economy is normalizing after a period of rate hikes, the home improvement market still faces headwinds. Stated.
Billy Vlastek, Home Depot’s executive vice president of merchandising, said on a conference call that high-value transactions (defined as transactions of $1,000 or more) were down 6.9% from a year ago in the fourth quarter.
Home Depot shares rose 0.1% to $362.83 on Tuesday, after falling as low as $354.56 in early trading. The stock price has increased about 20% over the past year.
-Stephen Wisnewski
Barclays shares soar as bank reorganizes, cuts costs and plans share buybacks
2 hours 54 minutes ago
Barclays’ (BCS) American Depositary Receipts (ADRs) soared on Tuesday after the UK-based bank announced a major restructuring, cost-cutting and plans to return billions of dollars to shareholders.
The company announced that it would be dividing the company into five divisions, explaining this as a simplification of its business, organization and operations. Private Bank and Wealth Management Department. US consumer bank. British corporate bank. and investment banks.
Barclays said it plans to cut costs by 2 billion pounds ($2.53 billion) by 2026 and buy back shares worth at least 10 billion pounds ($12.65 billion) in the meantime.
In the fourth quarter, the bank reported a loss of 111 million pounds ($140 million). Group revenue fell 3% to 5.6 billion pounds ($7.1 billion).
Barclays’ ADRs rose 11% to $8.29 at midday on Tuesday, trading at their highest since July last year.
-Bill McCall
Investors avoid overpriced chip stocks for safety
3 hours 24 minutes ago
Some of this year’s best-performing semiconductor stocks fell sharply on Tuesday as investors sought safety.
Heading into Tuesday, Nvidia (NVDA), the best-performing stock in the S&P 500, fell more than 5% on Tuesday, giving the stock its worst day in a year. The AI chip leader is scheduled to report quarterly results after the market closes on Wednesday.
The stock price of Advanced Micro Devices (AMD), one of NVIDIA’s leading competitors in the advanced AI semiconductor market, also fell by more than 5%.
Semiconductor manufacturing equipment maker Applied Materials (AMAT) soared more than 6% last Friday after reporting better-than-expected current quarter forecasts, but has fallen more than 5%, giving back almost all of its gains. Ta.
Meanwhile, consumer staples, the stock market’s safe haven, rose, with Walmart (WMT) up more than 3% and Coca-Cola (KO) up nearly 2%. Other safe-haven assets such as gold and U.S. Treasuries also rose.
GlobalFoundries increases inventory with $1.5 billion grant to boost chip production
4 hours 9 minutes ago
GlobalFoundries (GFS) avoided a broader tech stock decline on Tuesday after announcing on Monday that it had secured a $1.5 billion grant from the U.S. government. This is the first major grant from the $39 billion fund established in 2022 as part of U.S. CHIPS. and scientific law.
The company, which recently opened a $4 billion factory in Singapore, plans to use the grant to build new semiconductor production facilities in Malta and New York and expand existing operations in northern Vermont.
The company will also have access to $1.6 billion in available financing, with total funding generating a potential investment of $12.5 billion and approximately 10,500 construction and manufacturing jobs across both states. This is expected, the US Department of Commerce (DOC) said in a statement.
Source: TradingView.com.
GlobalFoundries’ stock price has been fluctuating in an orderly downward channel since early April last year. Although the price is at the midpoint of the pattern, volume has increased in recent weeks, indicating more active participation in the stock. If the stock moves higher in the coming days, keep an eye on the top trendline of the channel, currently near $60.75, as a potential resistance area. Conversely, note the buyers’ ability to protect support near the lower trendline of the pattern near $46.20.
Shares rose 1.6% to $54.22 on Tuesday morning.
-Timothy Smith
Capital One acquisition finds financial lead in S&P 500
4 hours 41 minutes ago
Shares of Discover Financial Services (DFS) soared as much as 12.3% on Tuesday morning, after Capital One Financial Corp. (COF) announced it would acquire the credit card and payments provider in an all-stock deal, boosting 2020 It was the biggest intraday rise since 2017. 35.3 billion dollars.
Under the terms of the deal, Discover shareholders will receive 1.0192 Capital One shares for each Discover share, representing a 26.6% premium to Discover’s closing price on Friday. Upon completion of the transaction, Capital One shareholders will own approximately 60% of the combined company, and Discover shareholders will own the remaining shares, according to a press release.
As of Friday’s close, Discover’s market capitalization was $27.6 billion, compared to Capital One’s market capitalization of $52.2 billion. U.S. financial markets were closed on Monday for the President’s Day holiday.
Capital One expects the transaction to close in late 2024 or early next year, pending shareholder and regulatory approvals, and the combination of the companies will generate $2.7 billion in pre-tax synergies and an adjusted per share He said profits would increase by at least 15%. 2027.
Discover was the best-performing stock on the S&P 500 early Tuesday. Capital One shares plunged 5% on the move, but they offset the losses and fell about 1% nearly an hour into trading Tuesday.
-Stephen Wisnewski
Walmart stock rises after 4th quarter results, Vizio buys
5 hours 21 minutes ago
Walmart Inc. (WMT) reported better-than-expected results for its fiscal fourth quarter as the big retailer benefited from consumers being more careful with their spending while inflation levels remained elevated.
Shares of the company, which also announced an agreement to buy smart TV maker Vizio (VZIO) for $2.3 billion, rose more than 5% in early trading Tuesday. Vizio stock rose 15% before the bell.
Walmart’s net income was $5.49 billion, or $1.80 per share, beating analysts’ expectations of $4.36 billion, or $1.61 per share. Sales for the three months ending in January, when the company’s fiscal year is updated, rose 6% to $173.39 billion. The company said it expects consolidated net sales to increase 4% to 5% in the first quarter.
Walmart will acquire Vizio for $11.50 per share in cash to expand its advertising business. Seth Dallaire, executive vice president and chief revenue officer of Walmart US, said in a statement that the acquisition gives the retailer “a rapidly expanding and profitable advertising business.”
-Nisha Gopalan
Stocks that move the most before the market
5 hours 51 minutes ago
Profit:
- Vizio Holding Corp. (VZIO): The smart TV maker’s stock rose 15% after Walmart announced it would buy the company for $2.3 billion to expand its advertising business.
- Discover Financial Services (DFS): Shares soared more than 13% on Monday after Capital One Financial (COF) announced it would acquire the credit card and payments provider in an all-stock deal worth $35.3 billion. . Capital One shares fell more than 4% in early trading.
- GlobalFoundries Inc. (GFS): The stock rose more than 7% after the Biden administration announced it would give $1.5 billion in CHIPS Act funds to semiconductor manufacturers to expand manufacturing capacity in New York and Vermont.
- Walmart Inc. (WMT): The discount retailer’s stock rose 4% after it reported fourth-quarter earnings of $1.80 per share on revenue of $173.39 billion, beating analyst expectations. Rose.
loss:
- Rio Tinto (RIO): The company’s shares fell 3% as iron ore prices fell to a three-month low amid concerns about weak demand from China’s ailing real estate sector. Peers BHP Group (BHP) and Vale SA (VALE) also fell pre-market.
- Home Depot Inc. (HD): The home improvement retailer’s stock fell 2% as its full-year sales forecast fell short of analysts’ expectations, overshadowing better-than-expected fourth-quarter sales and profits. .
Stock futures fall on retailer gains
6 hours 33 minutes ago
Futures contracts tied to the Dow Jones Industrial Average fell 0.3% in premarket trading Tuesday.
S&P 500 futures fell 0.3%.
Nasdaq 100 futures were trading 0.4% lower about an hour before the market opened.
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