WEEKLY RECAP
IN TECH
Soft guidance at Salesforce
On Thursday, Salesforce (NYSE:CRM) shares fell 4.7% despite the business reporting earnings that above expectations.
The adjusted profits per share for the quarter were $1.69, $0.08 higher than the average analyst expectation, while the $8.25 billion in sales exceeded the consensus estimate of $8.18 billion. Salesforce anticipates sales of $8.51 to $8.53 billion in the upcoming quarter, exceeding the $8.49 billion projections.
Better-than-expected print from Broadcom
Broadcom (NASDAQ:AVGO) reported earnings of $10.32 per share on Thursday, significantly surpassing the average estimate of $10.12 on slightly higher-than-expected revenue of $8.73B. It anticipates third-quarter sales of $8.85 billion, comfortably exceeding projections of $8.72 billion.
Dell lowers expectations in light of the difficult macro environment
Dell Technologies (NYSE:DELL) reported adjusted EPS of $1.31 on Thursday, exceeding the $0.86 average Street forecast, on revenue of $20.9B that was more than anticipated.
In spite of declining margins and sales due to a tougher PC demand environment, Dell projected for Q2 revenue of $20.7 billion at the midpoint of the range, which was lower than the Street’s estimate of $21.1 billion.
HP observes a decline in PC demand.
Shares of HP (NYSE:HPQ) fell almost 6% on Wednesday after the PC manufacturer reported its lowest quarterly revenue since early 2020 and noted persistent deterioration in the demand for personal computers.
HP reported a 21.7% decline in overall revenue to $12.9 billion for the fiscal second quarter that ended in April, falling short of estimates of $13.1 billion. This decline was due to a 29% decline in PC business sales and a 5% decline in printing revenue.
Earnings per share after adjustments of $0.80 exceeded forecasts of $0.76. Guidance for the third quarter (ending in July) predicts adjusted earnings of $0.81 to $0.91 per share, up from the $0.85 consensus, and $3.30 to $3.50 for the entire year, which is higher than the previous analyst expectation of $3.34.
Amazon disputes rumours that it is focusing on the telecom industry.
The news that Amazon (NASDAQ:AMZN) is in talks to offer low-cost or free nationwide mobile phone service to Prime subscribers sent telecom company shares tumbling, according to a Bloomberg report. An Amazon (NASDAQ:AMZN) spokesperson said the company doesn’t currently have plans to add wireless services.
IN EV SPACE
Elon’s Unexpected Trip to Beijing
Elon Musk, CEO of Tesla (NASDAQ:TSLA), unexpectedly travelled to Beijing last week for the first time in over three years to meet with a number of government officials. He was welcomed with open arms and opulent feasts.
Musk met with Qin Gang, China’s foreign minister, shortly after his arrival to talk about expanding Tesla’s operations there. By comparing China and the United States to inseparable conjoined twins, Minister Qin stressed the shared interests of the two countries.
Deliveries of Li Auto Shines in May
Li Auto Inc (NASDAQ:LI), a Chinese electric-vehicle company, has released its delivery results for May. 28,277 EVs were delivered by the corporation, a startling 146% increase from the previous year. The company delivered over 20,000 vehicles for the third month in a row, and for the second month in a row, more than 10,000 Li L7s. By the end of May, Li Auto had delivered 363,876 automobiles overall.
ACC Opens First EV Battery Facility
The first EV battery plant for Automotive Cells Company (ACC), a partnership between TotalEnergies (NYSE:TTE), Mercedes Benz (OTC:MBGAF), and Stellantis (NYSE:STLA), was opened in France.
Then, on Thursday, Stellantis changed its emphasis by announcing an investment of 160 million euros ($176.13 million) at its Rennes factory. The venture hopes to release the CR3, a 100% electric small SUV, in 2025.
Bulk deals
After receiving an unsolicited purchase bid from 3D Systems, Stratasys stock rises.
After Stratasys (NASDAQ:SSYS) disclosed it had received an unsolicited cash-and-stock offer from 3D Systems (NYSE:DDD) to buy the business, the price per common share of Stratasys increased by more than 11% on Friday. The offer was for $7.50 in cash and 1.2507 newly issued 3D Systems shares.
Dechra Pharmaceuticals accepts the £4.5 billion deal from EQT
After accepting the £4.46 billion (£1 = $1.25) offer from the Swedish private equity company EQT, the largest take-private deal in Europe so far this year, Dechra Pharmaceuticals’ (LON:DPH) shares increased by nearly 7% on Friday.
The offer, which is valued at 3,875p per share, is less than EQT’s initial indicative offer from April, which was 4,070p per share. Dechra viewed the conditions as “fair and reasonable” and intends to unanimously approve them.
LL Flooring increases thanks to Cabinets To Go’s delivery offer
Following the company’s confirmation of an unsolicited offer from Cabinets To Go, a division of F9 Brands, to purchase all of the company’s outstanding shares for $5.76 in cash per share, LL Flooring’s (NYSE:LL) shares increased by more than 8% on Wednesday
Arlington Asset Investment rises 47% after combining with Ellington Financial
Shares of Arlington Asset Investment (NYSE:AAIC), which had previously agreed to be acquired by Ellington Financial (NYSE:EFC), increased by more than 47% on Tuesday.
The combined company’s estimated pro forma market capitalisation would be more than $1B. It is anticipated that Ellington Financial shareholders will hold about 85% of the merged company’s stock and Arlington shareholders about 15%.
Insider trades & hedge fund moves
Kevin Plank, the creator of Under Armour, sells $100 million in stock.
Under Armour (NYSE:UAA) disclosed that Kevin Plank, the executive chair and brand chief, has sold about 16 million class C shares of Under Armour stock to BDT Capital Partners. These shares are currently worth about $100 million.
More Occidental Petroleum stock worth $270 million is added to Warren Buffett’s Berkshire.
Occidental Petroleum (NYSE:OXY) announced that Berkshire Hathaway (NYSE:BRKa) had purchased an additional 4.66 million common shares, valued at about $270 million, between $58.3026 and $58.8545.
Following the acquisition, Berkshire now owns Occidental Petroleum’s 221,990,942 common shares, 93,532 shares of Series A preferred stock, and rights to purchase an additional 83,858,848.81 common shares.
Shares of Grocery Outlet (NASDAQ:GO) increased by more than 3% on Friday after Director Erik Ragatz revealed buying 70,000 common shares for around $2 million at a price between $27.99 and $29.
Align Technology (NASDAQ:ALGN) ;Following Director Kevin Dallas’ purchase of 7,000 common shares at $285.2572, worth over $2 million, Align Technology (NASDAQ:ALGN) shares increased by more than 5% on Thursday. After the acquisition, Dallas now owns 12,246 shares in total.
Bernard Lanigan, a director of CNX Resources (NYSE:CNX), purchased 137,835 common shares for almost $2.1 million at $15.2358.
Weekly Earnings Calendar
MONDAY JUNE 5
JOANN, Inc. (JOAN), GitLab Inc. (GTLB), HealthEquity Inc. (HQY)
TUESDAY, JUNE 6
Ferguson plc (FERG), The J.M. Smucker Company (SJM), Caseys General Stores, Inc. (CASY), and Dave & Buster’s Entertainment, Inc. (PLAY)
WEDNESDAY JUNE 7
Brown Forman Corporation (BF.A), Campbell Soup Company (CPB), GameStop Corporation (GME), HashiCorp, Inc. (HCP), and Smartsheet Inc. (SMAR)
THURSDAY JUNE 8
DocuSign, Inc. (DOCU), The Toro Company (TTC), Vail Resorts, Inc. (MTN), Signet Jewelers Limited (SIG)
FRIDAY JUNE 9
NIO Inc. (NIO), Seneca Foods Corporation (SENEA), Aniza Biosciences, Inc. (ANIX), and Nathan’s Famous, Inc. (NATH)