Editor’s note: This story has been updated to correct the name of the Bernstein analyst covering Ford.
Ford Motor Company (NYSE:F) shares are trading lower on Thursday. Bernstein analyst Daniel Roeska downgraded Ford Motor from Outperform to Market Perform, with a price forecast of $11.
In an unrelated development, Ford revealed on Thursday that it is experiencing record sales growth in the Middle East in 2024, driven by strong performance in key markets and the introduction of its freshest lineup to date.
The launch of the Mustang Mach-E and Territory Hybrid highlights Ford’s commitment to an electrified future in the region.
Kay Hart, president of Ford’s International Markets Group, stated that the Mustang Mach-E is Ford’s first fully electric vehicle for the region and described it as one of the most exciting vehicles the company has ever produced.
Additionally, Ford highlighted that it is expanding its connected services offering, with the 2025 introduction of FordPass for customers in the Middle East.
“This success is due to strong market share gains by our distributors in key countries such as the United Arab Emirates, Kuwait, Bahrain, Qatar and Saudi Arabia,” said Ravi Ravichandran, president of Ford Middle East.
Next year, Ford will accelerate the launch of Ford Connected Services with the FordPass app first in the UAE, followed by Saudi Arabia.
This move further enhances Ford’s commitment to providing a better connected driving experience.
Ford is also enhancing its regional operations with the opening of a new parts distribution center in the UAE, slated for January 2025. The facility will enable faster delivery of parts to distributors, ensuring quicker service for Ford owners.
According to Benzinga Pro, F stock has gained over 8% in the past year. Investors can gain exposure to the stock via First Trust Nasdaq Transportation ETF (NASDAQ:FTXR) and WBI Power Factor High Dividend ETF (NYSE:WBIY).
Price Action: F shares are trading lower by 1.79% to $10.99 at last check Thursday.
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SolarEdge Technologies, Inc. (NASDAQ:SEDG) shares are trading relatively flat on Thursday.
Yesterday, the company reported third-quarter results, with revenues of $260.9 million, down 2% from $265.4 million in the prior quarter and down 64% from $725.3 million in the same quarter last year.
Revenues from the solar segment were $247.5 million, down 63% from $676.9 million in the same quarter last year.
Here are the analysts’ takes on the earnings results:
Piper Sandler analyst Kashy Harrison downgraded the stock to Underweight from Neutral, lowering the price forecast to $9 from $17.
The analyst sees cash flow challenges ahead due to normal DSOs/DPOs, weak sales, rising U.S. manufacturing costs, European issues, and the Tesla threat.
The analyst suggests a capital raise and major cost cuts are necessary for survival. Harrison widens the FY24 loss estimate per share to $(21.08) from $(7.20).
Truist Securities analyst Jordan Levy reiterated the Hold rating on the stock, with an unchanged price forecast of $20.
According to the analyst, the topline miss is primarily due to continued weakness in Europe, where MW volumes fell over 30%, while North American volumes rose by a similar percentage.
Further, topline and the gross margin guidance for the fourth quarter fell short of Street estimates, while the Opex guidance was slightly below the Street estimates.
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Roth MKM analyst Philip Shen reiterated the Neutral rating on the stock, loweing the price forecast to $12 from $20.
The largest third-quarter writedowns were for excess and obsolete inventory, as the company no longer expects to sell it due to reduced demand in the EU, Shen notes.
The analyst writes that the company aims to return to profitability by focusing on financial stability, regaining market share, and refocusing on core businesses.
It is also reducing costs, streamlining operations in profitable markets, and investing in technology for future growth, Shen notes.
KeyBanc Capital Markets analyst Sophie Karp noted that the company is banking on strong demand for U.S.-made products, alongside new offerings and software, to fuel growth in the next industry cycle.
However, the ongoing demand slump, coupled with recent election developments, is likely to dampen investor interest for now, the analyst writes. The analyst rates SEDG shares Sector Weight.
Price Action: SEDG shares are trading lower by 1.41% to $14.47 at last check Thursday.
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Applovin Corp (NASDAQ:APP) stock shot higher on Thursday following the upbeat quarterly print.
On Wednesday, the company reported third-quarter revenue of $1.2 billion, up 39%, beating analyst consensus estimates of $1.13 billion. Applovin increased the company’s share repurchase program by $2 billion.
It expects fourth-quarter revenue of $1.24 billion—$1.26 billion.
Multiple Wall Street analysts rerated the stock after the quarterly results.
JP Morgan analyst Cory Carpenter maintained AppLovin with a Neutral and raised the price target from $160 to $200.
Needham analyst Bernie McTernan reiterated AppLovin with a Hold.
Benchmark analyst Mark Zgutowicz maintained AppLovin with a Sell and a $66 price target.
JP Morgan: Cory A. Carpenter views AppLovin’s third-quarter results as a substantial beat, with guidance for the fourth quarter surpassing analyst expectations.
Carpenter highlights the Software Platform’s impressive 17% sequential growth, driven by technology upgrades to the Axon algorithm, which significantly outpaced the typical 4%- 5% growth target.
The gaming sector fueled this strong performance, while the company’s e-commerce pilot exceeded expectations. Management now expects e-commerce to become a significant growth driver in 2025 and beyond, with resources increasingly redirected to this segment.
The fourth-quarter projections imply moderate sequential growth for the Software Platform, as costs related to vesting and expanded data capacity slightly reduce incremental margins.
Despite being optimistic about AppLovin’s mobile gaming ad monetization leadership, Carpenter remains cautious about the company’s expansion beyond gaming.
He raised the December 2025 price target from $160 to $200, noting a revised multiple of 22.5x on the estimated 2025 EBITDA, reflecting confidence in the e-commerce outlook.
This multiple, though a premium compared to most ad tech peers, still presents a discount relative to The Trade Desk, In’s (NASDAQ:TTD) 48x, considering AppLovin’s slower growth in core gaming.
Carpenter expects fourth-quarter revenue of $1.26 billion and EPS of $1.30.
Needham: The latest results led McTernan to raise his adjusted EBITDA estimates for 2025 by 14%, reflecting a 23% year-over-year increase, with minimal assumptions for e-commerce contributions. However, management’s positive outlook on e-commerce suggests the potential for further growth.
AppLovin’s software segment has consistently outperformed, posting over 60% year-over-year growth in the past five quarters. In the third quarter, software revenue grew 66% year-over-year and 18% sequentially, primarily driven by advancements in Axon 2.0. Adjusted EBITDA for the software segment reached $653 million, up 80% year-over-year, with a margin of 78% and incremental margins of 87%.
Management attributes this success to its technology’s ability to expand the total addressable market (TAM) and increase client spending by demonstrating a high return on investment.
AppLovin’s pilot for its e-commerce advertising platform, introduced in the recent earnings call, is already yielding positive feedback. While the program is still in its early stages and expected to remain relatively small in 2024, management projects a meaningful impact by 2025. Management believes the e-commerce platform could expand into new markets, such as connected TV (CTV), potentially driving additional upside, citing customer satisfaction and strong returns.
Based on AppLovin’s third-quarter results and revised fourth-quarter projections, McTernan raised fiscal 2024 revenue and adjusted EBITDA estimates by 5% and 9%, respectively.
The 2025 revenue and adjusted EBITDA estimates also increased by 6% and 14%, considering the anticipated long-term benefits from the e-commerce platform expansion.
McTernan expects fourth-quarter revenue of $1.25 billion and EPS of $1.25.
Price Action: APP stock is up 44.1% at $242.31 at last check Thursday.
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Editor: The title of the story has been updated to reflect the amount of impairment charge.
SolarEdge Technologies, Inc. (NASDAQ:SEDG) shares are trading lower after the company reported third-quarter results yesterday. Revenues were $260.9 million, missing the consensus of $269.38 million.
Revenues from the solar segment were $247.5 million, up 3% from $241.2 million in the prior quarter and down 63% from $676.9 million in the same period last year.
The company shipped 850 Megawatts (AC) of inverters and 189 MWh of batteries for PV applications in the quarter.
Adjusted gross margin was negative 265.4% versus a positive margin of 0.2% in the prior quarter and compared to 20.8% last year.
Adjusted operating loss stood at $808.1 million versus an adjusted operating loss of $114.3 million last quarter.
Adjusted loss per share of $15.33 may not be comparable to the consensus loss of $1.63.
Operating cash flow was negative $63.9 million in the quarter. As of September 30, cash, cash equivalents, bank deposits, restricted bank deposits, and marketable securities totaled $53.3 million.
In the third quarter, SolarEdge conducted an asset valuation review, which resulted in a $1.03 billion write-down and impairment of various assets.
Outlook: For the fourth quarter, the company expects revenue of $180 million – $200 million (versus consensus of $308.66 million), revenues from the solar segment of $170 million – $190 million, and adjusted gross margin of negative 4% – 0%.
Investors can gain exposure to the stock via Invesco Solar ETF (NYSE:TAN).
Price Action: SEDG shares were down 17.3% at $12.13 premarket at the time of writing on Thursday. The stock has recouped all losses and is up 0.31% to $14.73 at the time of update as of 14.15.
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General Motors Company (NYSE: GM) reported a fiscal first-quarter 2024 sales growth of 7.6% year-on-year to $43.01 billion, beating the analyst consensus estimate of $41.88 billion.
Adjusted EPS of $2.62 beat the consensus estimate of $2.14. The stock price climbed after the results.
GM’s market share reached 8.1% for the quarter, compared to 8.7% a year ago. In the U.S., the share changed to 15.4%, down from 16.4%. Its share in China reached 7.9%, down from 9.1% a year earlier.
GM’s North American operations, backed by truck sales, mainly contributed to its first-quarter beat and guidance raise, CNBC cites the automaker.
Steady vehicle pricing and higher retail sales in North America also helped GM accomplish a 10.6% adjusted profit margin in the region for the period – above its previously announced 8% to 10% range.
Adjusted EBIT for the quarter improved by 1.8% to $3.87 billion, with an adjusted EBIT margin of 9.0%, down by 50 bps. Net income margin was 6.9% versus 6.0% a year ago.
GM CFO Paul Jacobson said automaker’s vehicle prices were flat to slightly lower due to vehicle mix during the quarter. He said the company still plans to produce 200,000 – 300,000 EVs in 2024.
The company held $25.5 billion in cash and equivalents as of March 31, 2024. The adjusted automotive free cash flow was $1.09 billion.
FY24 Guidance: General Motors projects adjusted EPS of $9.00 – $10.00 (prior $8.50 – $9.50) versus consensus of $9.08.
The company projects adjusted automotive free cash flow of $8.5 billion—$10.5 billion (prior $8.0 billion—$10.0 billion) and reiterated capital spending of $10.5 billion—$11.5 billion.
In the company conference call, General Motors CFO said the company expects to return to profit in China in the second quarter.
General Motors stock gained over 26% in the last 12 months. Investors can gain exposure to the stock via First Trust Nasdaq Transportation ETF (NASDAQ:FTXR) and Invesco S&P 500 Pure Value ETF (NYSE:RPV).
Price Action: GM shares are trading higher by 5.05% at $45.39 in premarket at the last check Tuesday.
Photo: Brandon Woyshnis/Shutterstock.com
General Motors Company (NYSE: GM) reported a fourth-quarter FY23 sales decline of (0.3)% year-on-year to $42.98 billion, beating the analyst consensus estimate of $38.97 billion.
Adjusted EPS of $1.24 beat the consensus estimate of $1.16.
GM’s market share reached 8.5% for the quarter versus 9.1% a year ago. In the U.S. the share changed to 15.7%, down from 16.7%. Its share in China reached 7.9%, down from 9.1% a year earlier.
The fourth quarter deliveries registered a 0.1 million increase Y/Y to 1.6 million units.
Operating income for the quarter fell to $0.9 billion versus $2.6 billion a year ago.
GM, in its letter to shareholders, said, “Consensus is growing that the U.S. economy, the job market and auto sales will continue to be resilient, and at GM, we expect healthy industry sales of about 16 million units with the mix of EVs continuing to grow.”
Adjusted EBIT for the quarter fell (53.4)% to $1.76 billion, with an adjusted EBIT margin of 4.1%, down by 470 bps. Net income margin was 4.9% versus 4.6% a year ago.
The company held $26.5 billion in cash and equivalents as of December 31, 2023. The adjusted automotive free cash flow was $1.34 billion.
The company acknowledged the slowdown in the EV business. However, it expects the U.S. portfolio to become variable profit positive in the second half of the year based on its current expectations for EV demand and production growth, strong interest in our vehicles, lower commodity prices and other factors.
Also Read: Dealers Urge General Motors To Embrace Hybrids Amid Electric Vehicle Hesitancy
FY24 Guidance: General Motors projects adjusted EPS of $8.50 – $9.50 versus consensus of $7.83. The company projects adjusted automotive free cash flow of $8.0 billion – $10.0 billion. It eyes capital spending of $10.5 billion – $11.5 billion.
Price Action: GM shares are trading higher by 7.94% at $38.20 in premarket on the last check Tuesday.
Photo: Brandon Woyshnis/Shutterstock.com
On Thursday, Emergent BioSolutions Inc. (NYSE:EBS) stock is trading higher on mixed third-quarter earnings and a new mpox trial in Africa.
The company reported third-quarter sales of $293.8 million, up 9% year over year, with the management guidance of $265 million–$315 million, and missing the consensus of $297.5 million.
The company reported an adjusted EPS of $1.37, a turnaround from a loss of $1.09 a year ago, beating the consensus of $0.14.
Revenues from Narcan (naloxone HCl) Nasal Spray decreased 33% to $95.3 million, primarily driven by the discontinuation of prescription Narcan due to the launch of over-the-counter Narcan in the third quarter of 2023 and lower Canadian retail sales, partially offset by higher sales of OTC Narcan.
Also Read: Emergent BioSolutions Confirms Orders Worth $400M Related To Smallpox, Mpox Vaccines
Revenues from Anthrax MCM fell 65% to $11.4 million, and Smallpox MCM sales jumped more than fivefold to $132.7 million.
Guidance: Emergent BioSolutions updated its 2024 revenue guidance from $1.05 billion – $1.125 billion to $1.065 billion – $1.125 billion, compared to the consensus of $1.123 billion.
The updated guidance includes commercial product sales of $420 million – $430 million compared to prior guidance of $450 million – $480 million.
MCM Product sales outlook of $510 million – $550 million, compared to $455 million – $490 million expected earlier.
Services segment sales are expected to be $105 million – $110 million, lower than the prior range of $120 million – $130 million.
The company expects a 2024 net loss of $203 million – $183 million, compared to the previous loss range of $314 million – $274 million, and an adjusted EBITDA of $180 million – $200 million compared to previous forecast of $140 million – $180 million.
Concurrently, Emergent BioSolutions announced that brincidofovir (brand name Tembexa for smallpox treatment) will be included in a trial conducted and sponsored by PANTHER, under the leadership of the Africa Centres for Disease Control and Prevention.
The study will evaluate the safety and efficacy of brincidofovir in treating mpox virus. The trial is scheduled to begin in the coming weeks in the Democratic Republic of Congo and neighboring countries.
Price Action: EBS stock is up 28.3% at $11.80 at last check Thursday.
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Roblox Corp (NYSE:RBLX) will soon implement new restrictions to protect young users from certain types of content and interactions.
Starting December 3, game creators must indicate if their games suit users under 13. Games lacking this classification will be automatically restricted for players aged 12 and younger.
Additionally, as of November 18, preteen users will no longer have access to certain social areas known as “social hangouts,” which allow real-time text and voice chat between players, BBC reports.
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Roblox will prohibit children under 13 from accessing games with “free-form 2D user creation” on November 18 to further safeguard younger users.
This feature includes tools like virtual chalkboards or whiteboards, where players can draw or write without prior moderation. The company hopes that restricting this feature will help reduce the risk of offensive messages or images appearing unfiltered on the platform.
Content creators who want to make their experiences accessible to younger users must meet specific age-appropriate requirements, complete a detailed questionnaire, and ensure compliance with Roblox’s guidelines.
Roblox has faced significant scrutiny over child safety. Earlier this year, an Ofcom report highlighted Roblox as the most popular game among UK children aged 8 to 12.
However, the platform has also received complaints regarding potential risks to younger players, including reports of inappropriate interactions. Turkey, for instance, blocked Roblox in August over similar concerns.
In October, the company introduced new parental controls, including a more manageable account type for parents to oversee their children’s activities.
Juliet Chaitin-Lefcourt, a Roblox spokesperson, told the Verge that the company shipped over 30 improvements this year, with more to come. Chaitin-Lefcourt added that transparency with the developer community remains a priority as the company rolls out these updates.
The full enforcement of these new safety standards will continue into the following year as Roblox introduces stricter age-based access and a rating system to protect younger users.
Roblox reported fiscal third-quarter 2024 bookings growth of 34% to $1.13 billion. The Average Daily Active Users (DAUs) were 88.9 million, up 27%. The Hours Engaged were 20.7 billion, up 29%.
In October, Roblox faced two bearish reports from Bear Cave and Hindenberg for allegedly inflating key user metrics, including daily active users (DAUs) and engagement hours.
Price Action: RBLX stock is up 0.88% at $53.37 at the last check on Thursday.
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Gilead Sciences Inc (NASDAQ:GILD) stock is trading higher on Thursday after the company reported better-than-expected third-quarter financial results and raised its fiscal year 2024 guidance.
On Wednesday after market, Gilead reported third-quarter adjusted EPS of $2.02, down from $2.29 a year ago, beating the consensus of $1.55.
The HIV drug maker reported sales of $7.55 billion, up 7% year over year, beating the consensus of $7 billion, primarily due to higher sales in HIV and Veklury (remdesivir), Oncology and Liver Disease.
HIV product sales increased 9% to $5.1 billion, with Biktarvy sales increased 13% to $3.5 billion. Descovy sales jumped 15% to $586 million.
The Liver Disease portfolio sales increased 4% to $733 million. Veklury sales increased 9% to $692 million.
“Gilead’s third-quarter results are the strongest of the year to date, with 7% year-over-year revenue growth, including 13% year-over-year growth for Biktarvy,” said Daniel O’Day, Chairman and CEO.
Guidance: Gilead Sciences raised its fiscal year 2024 adjusted EPS guidance from $3.60 – $3.90 to $4.25 – $4.45 compared to the consensus of $3.81.
The company expects 2024 product sales of $27.8 billion – $28.1 billion compared to prior guidance of $27.1 billion – $27.5 billion.
Analysts’ reaction:
- Piper Sandler maintains Gilead Sciences with an Overweight, raising the price target from $95 to $105.
- Barclays reaffirms Gilead with an Equal-Weight rating while boosting the price target from $84 to $95.
- Wells Fargo maintains Gilead with an Overweight rating, raising the price target from $100 to $105.
- Cantor Fitzgerald reiterates Gilead with a Neutral rating, increasing the price target from $70 to $80.
- Goldman Sachs maintains Gilead’s Neutral rating, lifting the price target from $74 to $84.
- RBC Capital maintains Gilead’s Sector Perform rating and boosts the price target from $75 to $81.
- JP Morgan maintains Gilead with an Overweight rating, raising the price target from $100 to $105.
- Baird maintains Gilead’s Neutral rating, increasing the price target from $80 to $95.
Price Action: GILD stock is up 5.94% at $97.14 at last check Thursday.
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United States Cellular Corp (NYSE:USM) has agreed with AT&T Inc (NYSE:T) to sell a portion of its retained spectrum licenses for $1.018 billion.
The transaction aligns with UScellular’s strategy, announced in May 2024, to capitalize on its remaining spectrum assets, which are not included in the proposed sale to T-Mobile US Inc (NASDAQ:TMUS).
This sale follows agreements made in October 2024 to sell other retained licenses to Verizon Communications Inc (NYSE:VZ) and two additional mobile network operators.
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Laurent C. Therivel, President and CEO of UScellular, emphasized the value generated through recent deals, noting that AT&T’s inclusion as a buyer expands the roster of networks set to benefit from UScellular’s assets.
Therivel expressed confidence that AT&T will utilize the acquired licenses to support communities across the U.S.
With this transaction and previous agreements, UScellular has established deals to monetize around 55% of its spectrum holdings (excluding mmWave) on an MHz-Pops basis.
These deals collectively amount to approximately $2.02 billion. Once the proposed T-Mobile transaction is finalized, UScellular will have agreements to monetize approximately 70% of its overall spectrum assets.
Therivel added that UScellular would retain 1.86 billion MHz-Pops of low- and mid-band spectrum and 17.2 billion MHz-Pops of mmWave spectrum. He highlighted the strategic value of UScellular’s C-band licenses, which offer competitive mid-band frequencies, strong support in the 5G ecosystem, and extended build-out timelines through 2029 and 2033.
This flexibility allows UScellular to leverage or sell these assets in the future, with plans to explore further monetization options for the C-band and other remaining spectrum.
The agreement involves selling 1,250 million MHz-Pops of 3.45 GHz licenses and 331 million MHz-Pops of 700 MHz B/C block licenses to AT&T for $1.018 billion, subject to potential adjustments outlined in the purchase agreement.
The transaction’s completion hinges on closing the T-Mobile deal and obtaining regulatory approvals and customary closing conditions.
Some licenses to be transferred to AT&T are partially owned by a third party. Their sale will depend on UScellular’s purchase of remaining equity in the third party, which is pending regulatory approval. These licenses account for around 15% of the MHz-Pops covered in this sale.
TDS, which holds an 83% stake in UScellular, has formally approved the transaction with AT&T.
AT&T generated $10.24 billion in operating cash flow and $5.095 billion in free cash flow for the September 30, 2024 quarter. T is down 0.94%.
Price Action: USM stock is up 0.20% at $65.28 at the last check on Thursday.
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Molson Coors Beverage Company (NYSE:TAP) reported third-quarter adjusted earnings per share of $1.80, beating the street view of $1.67.
Quarterly sales of $3.04 billion missed the analyst consensus of $3.13 billion. Net sales decreased 7.8%, driven by lower financial volumes, partially offset by favorable price and sales mix.
Financial volumes dropped 12.3%, mainly due to lower shipments, including reduced contract brewing volumes in the Americas. Brand volumes fell 4.4%, with a 5.4% decline in the Americas and a 1.8% decrease in EMEA & APAC.
Net sales benefited from a 4.5% positive price and sales mix impact, driven by higher net pricing and a favorable sales mix, including the impact of reduced contract brewing volumes in the U.S.
Total debt as of September 30 was $6.2 billion, and cash and equivalents totaled $1.02 billion, resulting in a net debt of $5.219 billion.
In a separate release, Molson Coors said it is acquiring a majority stake in ZOA, the energy brand co-founded by Dwayne Johnson, and will now lead its marketing and sales efforts. The company expects this move to drive significant growth for ZOA.
“We’re building a winning portfolio that offers consumers choices across a wide range of occasions, and non-alc is a key part of that strategy,” said Molson Coors Chief Commercial Officer Michelle St. Jacques.
Molson Coors and ZOA first struck a partnership when the brand launched in 2021, and Molson Coors increased its stake in ZOA last September while also assuming a presence on ZOA’s Board of Directors.
Outlook: Molson Coors now expects net sales to decline by about 1% in 2024 compared to 2023 on a constant currency basis. This is a revision from their previous forecast of a low single-digit increase, due to weaker performance in the U.S. beer industry during the peak selling season.
The company now expects its 2024 underlying diluted earnings per share to be at the high end of the prior outlook range of a mid-single-digit increase compared to 2023.
Price Action: TAP shares are trading higher by 0.68% to $56.91 at last check Thursday.
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On Thursday, Becton, Dickinson and Company (NYSE:BDX) reported fourth-quarter sales of $5.44 billion, up 6.9% year over year (+7.4% currency-neutral and 6.2% organic), beating the consensus of $5.38 billion.
“In FY24, our team advanced our strategy, continuing to shift our portfolio into higher-growth areas through new innovations and the acquisition of Edwards Lifesciences’ Critical Care product group, while leveraging our BD Excellence system to exceed our margin expansion, earnings and cash flow goals,” said Tom Polen, chairman, CEO and president of BD.
“Our growth strategy remains focused on delivering solutions for our customers that leverage significant shifts in technology, like biologics, AI and automation, that are revolutionizing patient care.”
BD Medical segment sales increased to $2.84 billion, up 11.1%. Medication Management Solutions led organic revenue growth of 8.6%.
BD Life Sciences sales were almost flat to $1.34 billion, up 0.7% (+1.4% organic), and BD Interventional sales were up 4.7% (+6.6%) to $1.26 billion.
The MedTech player reported adjusted EPS of $3.81, up 11.4%, beating the consensus of $3.77.
Dividend: BD declared a quarterly dividend of $1.04 per share, an increase of 9.5% from the previous quarter. The dividend will be payable on December 31 to holders of record on December 9.
Guidance: BD sees fiscal year 2025 sales of $21.9 billion-$22.1 billion compared to a consensus of $21.75 billion.
The company forecasts an adjusted EPS of $14.25-$14.60 versus the consensus of $14.34.
The company expects revenue growth of 8.9%-9.4% and currency-neutral adjusted revenue growth of 8.8%-9.3%, including the newly acquired Advanced Patient Monitoring business.
The company’s organic revenue growth guidance of 4.0%-4.5% includes absorbing an impact of about 125 basis points from an expected decline in revenues in China and Bioscience and Pharma market dynamics.
Price Action: BDX stock is down 3.96% at $230.55 at the last check on Thursday.
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Dentsply Sirona Inc. (NASDAQ:XRAY) shares are trading lower on Thursday.
The company reported third-quarter adjusted earnings per share of 50 cents, beating the street view of 47 cents. Quarterly sales of $951 million (increased 0.5%) outpaced the analyst consensus estimate of $939.10 million.
The company recorded a $495 million non-cash goodwill impairment charge in the Orthodontic and Implant Solutions segment. This was due to ongoing economic challenges, legislative changes affecting Byte, weaker demand, increased competition in implants, and lower expected lab material volumes.
Segment wise, Connected Technology Solutions fell 2.3%, Essential Dental Solutions gained 6.6%, Orthodontic and Implant Solutions slumped 4.6%, while Wellspect Healthcare fell 0.4%.
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Quarterly adjusted EBITDA fell 1.8% to $170 million. Adjusted EBITDA Margin contracted to 17.9% from 18.3% in the quarter under review.
“Third quarter organic growth was driven by favorable timing in Essential Dental Solutions of approximately $20 million related to stocking orders in anticipation of U.S. ERP deployment, and higher sales in CAD/CAM, which benefited from the launch of our new scanner, Primescan 2,” said Simon Campion, President and Chief Executive Officer.
“Due to ongoing market pressures impacting equipment in the U.S., as well as the evolving landscape with Byte, we are lowering our full year organic sales outlook,” Campion added.
The company had $296 million of cash and cash equivalents as of September 30. Long-term debt as of quarter end totaled $1.795 billion.
Guidance: Dentsply Sirona revised its 2024 outlook due to market pressures impacting U.S. equipment, legislative changes affecting the direct-to-consumer aligner business model, and the voluntary suspension of sales, marketing, and shipments of Byte Aligners and Impression Kits.
The revised sales forecast is $3.79 billion – $3.83 billion, versus prior guidance of $3.86 billion – $3.90 billion and consensus of $3.878 billion, with an organic sales decline of 3.5% – 2.5% year over year.
The company expects 2024 adjusted EPS of $1.82 – $1.86 versus prior guidance of $1.96 – $2.02 and consensus of $1.98.
William Blair noted that some negative events have affected the stock since upgrading Dentsply Sirona last year. However, the firm still believes the stock offers an appealing risk-to-reward balance for a leading dental company with broad capabilities and strong potential in a promising market.
“We think the aforementioned headwinds will likely make shares a “show me” story in the near term but expect execution on operational efficiencies and potentially improving macro in the coming quarters can support the stock,” the analyst writes. William Blair maintains the Outperform rating.
Leerink Partners has downgraded Dentsply Sirona from Outperform to Market Perform.
Price Action: XRAY shares are trading lower by 25% to $18.02 at last check Thursday.
Image via Pexels/ Karolina Kaboompics
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JP Morgan Chase & Co. (NYSE:JPM) shares are trading lower on Thursday. J.P. Morgan Real Estate Income Trust, Inc. disclosed the acquisition of a two-site, three-building logistics and storage portfolio in Tampa and Pinellas Park, Florida, for $25.8 million, excluding closing costs.
This investment enables JPMREIT to acquire infill logistics facilities in one of the fastest-growing U.S. metro areas.
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The portfolio, totaling 154,490 square feet, located in densely populated regions near major highways, is strategically positioned to meet the rising demand for both business and personal storage.
Doug Schwartz, Co-President of JPMREIT, said, “With infill industrial assets experiencing healthy fundamentals and long-term demand tailwinds, this sector remains a high-conviction theme for JPMREIT.”
”This acquisition not only strengthens our portfolio but also aligns with our strategy to invest in high-growth regions.”
Last month, JPMorgan reported third-quarter revenue of $42.65 billion, up 7%, beating estimates and a net income of $12.9 billion and EPS of $4.37.
Also, the bank recently launched a new initiative called J.P. Morgan Private Client to attract and serve affluent clients.
The new offering sits between the existing Chase Private Client tier for customers with more than $150,000 and J.P. Morgan Private Bank for clients with more than $5 million in assets.
Investors can gain exposure to the stock via IShares U.S. Financial Services ETF (NYSE:IYG) and SPDR Select Sector Fund – Financial (NYSE:XLF).
Price Action: JPM shares are down 3.79% at $237.70 at the last check Thursday.
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Stellantis N.V. (NYSE:STLA) shares are trading higher on Thursday. The company partnered with Infineon Technologies AG (OTC:IFNNY) to develop the power architecture for its electric vehicles, supporting the goal of providing clean, safe, and affordable mobility.
As per the deal, Stellantis and Infineon Technologies have signed significant supply and capacity agreements to lay the foundation for their collaboration on next-generation power architecture.
The collaboration includes Infineon’s PROFET smart power switches to replace fuses, SiC semiconductors to enhance EV performance and reduce costs, and AURIX microcontrollers for the STLA Brain zonal architecture.
Peter Schiefer, President of Infineon’s Automotive Division said, “As the world’s leading automotive semiconductor vendor, we bring our product-to-system expertise and dependable electronics to the table. Our semiconductors drive the decarbonization and digitalization of mobility. They increase the efficiency of cars and enable software-defined architectures that will significantly improve the user experience.”
Last month, Stellantis reported a 27% decline in third-quarer net revenues, primarily due to lower shipments and unfavorable mix as well as pricing and foreign exchange impacts.
Price Action: STLA shares are up 1.23% at $14.04 at the last check Thursday.
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