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ADM benefits from accounting probe updates
52 minutes ago
Shares of agricultural products company Archer Daniels Midland (ADM) rose on Tuesday after the company released a long-awaited update on an internal investigation into accounting practices in one of its divisions and released its delayed fourth-quarter earnings report. It rose in response.
ADM’s adjusted net income of $720 million and adjusted earnings per share (EPS) of $1.36 fell short of analysts’ estimates compiled by Visible Alpha, but investors will receive the latest information on the company’s accounting review. may have allayed concerns.
The company’s stock price plummeted in January after ADM announced an investigation into its nutrition division’s accounting practices and placed Chief Financial Officer Vikram Luthor on leave.
The audit revealed that some sales of products sold between the nutrition division and other divisions of ADM were not reported at market value. ADM reiterated in its statement and SEC filing that the weaknesses in its accounting practices did not have a material impact on its earnings.
ADM’s Board of Directors also approved an additional $2 billion under the company’s existing 200 million share repurchase program through 2024.
ADM stock rose 4.3% to $57.29 late Tuesday afternoon. Since the beginning of 2024, its value has fallen by about a fifth.
-Aaron McDade
NYCB completes $1 billion cash injection.Plans for reverse stock split
1 hour 47 minutes ago
New York Community Bancorp (NYCB) shares rose on Tuesday after the bank announced the completion of a $1 billion equity investment by a group of companies and its intention to conduct a 3-for-3 reverse stock split.
As part of the deal, former Comptroller of the Currency Joseph Otting was named the lender’s new chief executive officer. He also joined former Treasury Secretary Steven Mnuchin and investors Milton Berlinsi and Allen Puwalski on the bank’s board, which has been reduced to 10 members.
The company announced Monday that it is proposing a 3-for-1 reverse stock split to boost its stock price, which has plummeted this year on concerns about its exposure to troubled commercial real estate loans.
Investors were first stunned by the company’s decision to cut its dividend at the end of January after reporting an unexpected quarterly loss. Shares came under further pressure late last month when the bank replaced its longtime CEO after identifying “material weaknesses” in its internal controls.
NYCB stock rose 3.4% to $3.36 Tuesday afternoon. Still, the stock has lost about 67% of its value in the past month and a half alone.
3M stock price rises after appointing Bill Brown as CEO
2 hours 28 minutes ago
Shares of 3M Company (MMM) soared Tuesday after the company announced it had named William M. “Bill” Brown as its new chief executive officer.
Brown, the former CEO of aerospace and defense company L3Harris Technologies (LHX), will replace Michael Roman, who will become 3M’s executive chairman, the company said in a statement. Both appointments are effective May 1.
The move comes as the conglomerate navigates a series of legal challenges. Last year, the company agreed to pay $10.3 billion to settle a wide range of class-action lawsuits over so-called “forever chemicals” and also reached a $5.5 billion settlement over earplugs provided to the military.
3M stock rose 4.9% to $98.67 on Tuesday, after rising as high as $100.85 in early trading. The company’s stock has lost about half its value since Roman took over as CEO in July 2018.
-Mark Zerbora Shalland
Southwest Airlines and American Airlines issue guidance warning, stock prices plummet
3 hours 17 minutes ago
Shares of Southwest Airlines (LUV) and American Airlines Group (AAL) fell on Tuesday as Boeing (BA) jet delivery issues and higher fuel prices, respectively, were expected to impact performance.
Southwest Airlines said it will have to cut production capacity and lower its outlook after receiving fewer Boeing jets than expected this year. Southwest Airlines said its sole supplier, the aircraft manufacturer, advised the airline to expect to deliver 46 737 Max 8s, 12 fewer than originally planned.
As a result of Boeing’s situation, the company wrote in a regulatory filing that it is “reevaluating all of our previous full-year 2024 guidance, including our capital spending expectations,” and that The company plans to announce the latest information at its financial results announcement.
For Americans, the problem is the cost of jet fuel. The company warned that its adjusted loss for the current quarter would be at the “lower end” of previous expectations of a decline of $0.15 to $0.35 per share. American Airlines said fuel prices have “increased significantly since our initial Q1 guidance issued on January 25, 2024.”
Southwest Airlines was the worst performing stock in the S&P 500 early Tuesday afternoon, dropping 14.5% to $28.85. American Airlines (down 4.3%) and Boeing (down 4.4%) were also near the top of the list of big decliners.
-Bill McCall
Coles Post outperforms profit, but expects profit to decline this year
3 hours 52 minutes ago
Kohl’s (KSS) stock fell on Tuesday even as the department store chain reported holiday quarterly results that beat analysts’ profit expectations.
Kohl’s’ fourth-quarter earnings came in at $186 million, or earnings per share (EPS) of $1.67, beating analyst estimates compiled by Visible Alpha. This number also significantly exceeded the fourth quarter of fiscal 2022, when Kohl’s reported a loss of $273 million, or $2.49 per share.
After an eventful end to 2022 that included the sudden departure of its CEO, this is the fourth consecutive quarter that Kohl’s has exceeded analysts’ EPS estimates. Kohl’s reported full-year 2023 earnings of $317 million, or $2.85 per share.
However, returns are likely to be lower this year. The retailer expects its full-year EPS to fall in the range of $2.10 to $2.70, while net sales will be in the range of 1% down to 1%.
Kohl’s stock was down 2.7% at $26.47 at midday Tuesday. The stock is down about 7% year to date in 2024, but up 6% over the past 12 months.
-Aaron McDade
Advance Auto Parts gains as activist hedge fund Third Point buys stock and adds board member
4 hours 42 minutes ago
Auto aftermarket parts provider Advance Auto Co., Ltd., after Dan Loeb’s activist hedge fund Third Point LLC went public on Monday and added three new directors to its board of directors. Parts Inc. (AAP) stock rose in early trading on Tuesday.
Third Point partnered with Saddle Point LP, managed by former Pershing Square Capital Management partner Roy Katzovich, to acquire the position in the Raleigh, North Carolina-based company, Advance said. Auto Parts made the announcement in a statement on Monday.
The three directors appointed to the board are A. Brent Windham, Gregory L. Smith, and Thomas W. Siebold. The company’s Board of Directors will be temporarily expanded to 12 members with the new appointments.
Advance Auto Parts shares rose 4% Tuesday to a yearly high of $78.83.
-Fatima Atalwala
Oracle stock soars as financial report shows AI-related profits
5 hours 25 minutes ago
Oracle (ORCL) ranked highest in the S&P 500 on Tuesday morning after reporting earnings that beat analysts’ expectations and showed the position it stands to gain as enterprise cloud customers integrate artificial intelligence (AI) technology. It has become a high performing brand.
The company reported third-quarter fiscal 2024 revenue of $13.3 billion, slightly above analyst expectations compiled by Visible Alpha and representing a 7% year-over-year increase.
Oracle’s net income for the quarter was $4 billion, beating analysts’ expectations and increasing from the previous quarter and year-ago period. Earnings per share (EPS) of $1.41 exceeded analyst expectations and increased 16% year over year.
Oracle stock soared more than 11% to $127 on Tuesday morning. The stock has increased about 50% of its value over the past year.
-Naomi Buchanan
Bank of America raises 2024 S&P 500 EPS forecast
6 hours ago
Bank of America on Tuesday raised its earnings forecast for the S&P 500 to a street high.
The bank raised its 2024 S&P 500 earnings per share forecast to $250 from $235, a 12% increase from 2023. BofA also announced 2025 EPS of $275.
Analysts raised their EPS estimates after BofA economists raised their U.S. GDP forecasts. They forecast U.S. economic growth of 2.7% in 2024, nearly double the 1.4% forecast in November.
Analysts led by Ohsung Kwon argue that companies are adapting to last year’s rise in interest rates and slowing demand. “The next growth will come from the top line,” they wrote.
Speaking of 2024, the topic of artificial intelligence is essential. BofA sees a “virtuous cycle forming” from AI investments, with hyperscalers such as Microsoft (MSFT), Amazon (AMZN), Alphabet (GOOGL), and Meta (META) increasing capital spending by 27% year over year. It is expected to increase in 2024.
“Semiconductors and networking are the most obvious beneficiaries” of this investment, Kwon said, “but increased power usage and physical expansion of data centers will offset demand for electrification, utilities, consumer goods, etc. “This will lead to an increase in productivity through AI.” Domestic investment is also a major tailwind. ”
-Christiana Shawdon
Stocks that move the most before the market
6 hours 34 minutes ago
Profit:
- Oracle Corporation (ORCL): Shares of the software company rose more than 11% after the company reported better-than-expected profits on strong demand for its AI products.
- 3M Company (MMM): Shares of the conglomerate rose more than 6% after naming former L3Harris CEO William M. Brown as its new CEO.
- Carvana Inc. (CVNA): Shares of the online used car retailer rose more than 3% after Jefferies analysts raised their holdings and raised their price target from $30 to $85.
loss:
- Southwest Airlines (LUV): The low-cost carrier’s stock was down about 2% pre-market after aircraft maker Boeing (BA) lowered its 2024 capacity forecast, citing delays. It fell by 8%.
- American Airlines Group (AAL): The airline’s stock fell about 4% after the airline warned that its first-quarter loss would be at the lower end of guidance provided in January due to a significant increase in fuel costs.
- Kohl’s Corporation (KSS): The department store chain’s stock fell more than 3% after quarterly sales fell short of Wall Street expectations and the company’s outlook for the current quarter also fell short.
Inflation in February exceeded economists’ expectations – again
7 hours 12 minutes ago
Inflation exceeded expectations for the second consecutive month.
According to the Consumer Price Index, prices rose 3.2% over the past 12 months in February, higher than January’s annual rate of 3.1%. “Core” inflation, which excludes volatile food and energy prices, was 3.8%, down from 3.9% in January. Both numbers were slightly higher than economists expected, according to a survey by Dow Jones and The News. wall street journal.
Prices rose 0.4% over the month, accelerating from January’s 0.3% month-on-month rise.
Investors also saw the report as news that could delay the Federal Reserve’s long-awaited rate cut. Just before the policy decision, they had priced in a 60.8% chance of the first rate cut in June, according to CME’s FedWatch tool, which forecasts interest rate movements based on federal funds futures trading data. Immediately after the inflation report was released, it fell to 58.4%.
-Deacon Hyatt and Taylor Tompkins
Stock futures rise ahead of CPI
7 hours 35 minutes ago
Futures contracts tied to the Dow Jones Industrial Average were little changed from Monday’s close.
S&P 500 futures rose 0.2%.
Nasdaq 100 futures rose 0.4% about an hour before the market opened.
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