Abbott Labs Stock Falls as Q2 Guidance Outweighs Earnings Beat
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Shares of Abbott Laboratories (ABT) fell in intraday trading Wednesday, with second-quarter guidance seeming to outweigh first-quarter results that beat analyst estimates.
Key first-quarter metrics narrowly beat consensus estimates compiled by Visible Alpha, with $9.96 billion in sales and $1.73 billion in adjusted net income, or 98 cents per share, surpassing expectations of $9.9 billion, $1.67 billion, and 95 cents per share, respectively.
Abbott’s adjusted EPS for the full fiscal year was narrowed to between $4.55 to $4.70 from a prior range of $4.50 to $4.70, surrounding analyst expectations of $4.62. Second-quarter guidance of $1.08 to $1.12 is mostly below the consensus $1.12.
Abbott stock slipped 3.2% to $105.75 late in the session on Wednesday. The stock has fallen about 4% so far this year.
Fund Managers, Most Bullish in Years, Pile Into Commodities as Prices Surge
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The “smart money” is more optimistic than it’s been in more than two years, according to Bank of America’s monthly global fund managers survey (FMS).
BofA’s FMS sentiment—based on cash levels, equity allocation, and growth expectations—jumped this month to its highest level since January 2022. And for the first time since December 2021, more fund managers expect a stronger global economy in the next 12 months than expect a weaker economy.
That said, they also increasingly expect inflation to remain higher than expected through the rest of the year. Twenty-four percent of respondents to BofA’s survey expect a “boom” scenario—characterized by above-average growth and above-average inflation—over the next 12 months. That figure stood at 12% in March and just 5% in January. Fund managers have subsequently trimmed their exposure to bonds by the most since July 2003 as hope for impending interest rate cuts and lower yields has faded.
Meanwhile, managers poured into materials and commodities, increasing their exposure to the latter by the most on record in data going back to 2006. That has coincided with surging commodity prices, which have been buoyed by economic data suggesting global growth and demand remain relatively strong despite major central banks around the world dramatically raising interest rates. Supply of certain commodities has also appeared precarious, with conflict in the Middle East threatening to disrupt the flow of oil and a dearth of mining projects restricting copper supply.
Why Autonomous Driving Company Mobileye’s Stock Is Rising Wednesday
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Mobileye Global (MBLY) shares climbed Wednesday after the autonomous driving company said it delivered the first production-candidate hardware and software of its new EyeQ6 Lite system-on-chip to customers.
The EyeQ6 Lite system-on-chip will “power advanced driver-assistance systems in multiple models launching this year,” the company said in a release.
Mobileye introduced the EyeQ6 family in 2022, with the EyeQ6L set to be installed in 46 million vehicles in the coming years. The EyeQ6 High advanced system-on-chip is on track to launch in early 2025, the company said.
Mobileye shares were up 3.8% at $31.28 Wednesday afternoon. Despite Wednesday’s gains, the stock has declined more than 27% since the start of 2024.
US Bancorp Stock Slips Following Q1 Revenue Decline, Guidance Cut
3 hr 11 min ago
U.S. Bancorp (USB) shares dipped Wednesday as the regional bank posted lower first-quarter revenue, increased its provision for credit losses, and cut its guidance.
The U.S. Bank parent reported quarterly revenue declined 6.4% year-over-year to $6.72 billion, missing estimates. Adjusted earnings per share (EPS) of $0.90 came in better than forecasts.
U.S. Bancorp’s net interest income tumbled 14% to $3.99 billion. The amount of money it put aside for bad loans rose 30% from a year ago to $553 million. The company noted it paid a $110 million special assessment by the Federal Deposit Insurance Corporation (FDIC) to cover the costs of the federal takeover of failed banks.
The firm lowered its guidance for full-year net interest income to a range of $16.1 billion to $16.4 billion from the previous projection of at least $16.6 billion.
Shares of U.S. Bancorp slipped 4.5% to $39.16 Wednesday afternoon. The stock has lost nearly 10% of its value so far this year.
JB Hunt Stock Drops as Logistics Company’s Earnings Miss Estimates Amid Soft Demand
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J.B. Hunt Transport Services (JBHT) was the worst-performing stock in the S&P 500 around midday Wednesday after the transportation and logistics company posted quarterly results that missed analysts’ expectations amid softer demand.
The Lowell, Arkansas-based firm late Tuesday posted first-quarter earnings of $1.22 per share, falling considerably short of Wall Street’s expectation of $1.53 a share. Revenue in the period of $2.94 billion fell from $3.23 billion in last year’s corresponding quarter and came in below the $3.11 billion expected by analysts.
The transportation giant said a 9% contraction in gross revenue per load in both its Intermodal and Truckload divisions, along with 22% fewer loads in its Integrated Capacity Solutions business, weighed down the top line.
Volumes in J.B. Hunt’s truck-rail Intermodal business, which accounts for 47% of the company’s total revenue, were flat in the period due to weaker demand amid increased trucking competition across its Eastern network.
J.B. Hunt shares were down 8.5% at $167.44 late Wednesday morning. The stock has lost about 16% of its value so far in 2024.
ASML Stock Tumbles as Q1 Profit Beats but Sales Disappoint
4 hr 43 min ago
American depositary receipts (ADRs) of ASML Holding (ASML) fell in intraday trading Wednesday following the release of a first-quarter earnings report that beat income estimates but fell short of sales expectations.
ASML posted 5.29 billion euros ($5.63 billion) in total sales for the first quarter of 2024, below estimates compiled by Visible Alpha of EUR5.42 billion ($5.77 billion). Net income, however, surpassed expectations, with ASML reporting profit of EUR1.22 billion ($1.30 billion), or earnings per share (EPS) of EUR3.11 ($3.31), topping estimates of EUR1.11 billion ($1.18 billion), or EUR2.83 per share ($3.01).
Chief Executive Officer (CEO) Peter Wennink said the company still sees 2024 as a “transition year,” with plans to continue investing in increased production capacity and new technology. ASML affirmed its full-year outlook, having previously said it expected sales to be roughly flat this year compared to 2023, with the second half of the year projected to see improved sales figures.
ADRs of ASML fell 7% to $908.01 Wednesday morning. The company has benefitted from the recent rally around semiconductor and other tech-related stocks, rising 20% so far this year and 42% in the last 12 months.
United Airlines Stock Soars After Topping Q1 Estimates, Issuing Upbeat Guidance
5 hr 34 min ago
United Airlines (UAL) surged in early trading on Wednesday after the airline topped Wall Street’s quarterly expectations and issued better-than-expected current-quarter earnings guidance, despite slashing its aircraft deliveries forecast from troubled airplane maker Boeing (BA).
For the three months ending March 31, the Chicago-based carrier posted an adjusted loss of 15 cents per share, narrower than the 57-cent-a-share loss expected by analysts. Revenue in the period of $12.54 billion jumped nearly 10% from a year earlier and topped the Street expectation of $12.45 billion.
United said the temporary grounding of Max 9 jets in January following an inflight door plug blowout involving the aircraft type cost it around $200 million, adding that it would have generated a profit in the quarter had the planes not been out of service.
Looking ahead, the airline guided current-quarter earnings of between $3.75 and $4.25 per share, with the midpoint of that range easily surpassing analysts’ modeling of $3.76 a share. The carrier also reiterated its full-year 2024 earnings forecast of between $9 and $11 a share.
United shares were up 12% at $46.33 Tuesday morning, bringing their year-to-date return to about 13%.
Stocks Making the Biggest Moves Premarket
6 hr 21 min ago
Gains:
- United Airlines (UAL): Shares of the carrier rose more than 5% after it reported better-than-expected revenue and earnings in the first quarter and forecast current-quarter earnings well ahead of Wall Street’s estimates.
- Vale S.A. (VALE): Shares of the Brazilian mining company rose about 3% after it said it had mined more iron ore than analysts expected in the first quarter.
- Eli Lilly (LLY): Shares of the pharmaceutical giant rose more than 2% after it reported positive results from a late-stage trial of its weight-loss drug for the treatment of sleep apnea.
Losses:
- J.B. Hunt (JBHT): Shares of the shipping and logistics company fell about 8% after its first-quarter revenue and earnings fell short of analysts’ expectations.
- ASML Holding (ASML): Shares of the chipmaking equipment company fell about 5% after it said first-quarter orders fell to 3.61 billion euros ($3.83 billion) from 3.71 billion in the year-ago quarter and far below analyst estimates of 5.1 billion euros.
- U.S. Bancorp (USB): Shares of the lender fell more than 4% after it trimmed its forecast for full-year net interest income to a range of $16.1 billion to $16.4 billion from an earlier estimate of $16.6 billion or more.
Stock Futures Tick Up as Earnings Roll In
6 hr 56 min ago
Futures contracts connected to the Dow Jones Industrial Average were up 0.1% in premarket trading on Wednesday.
S&P 500 futures rose 0.2%.
Nasdaq 100 futures traded 0.1% higher about an hour before markets opened.