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After rising in premarket trading, Novo Nordisk's (NVO) U.S.-listed shares fell after the market opened Wednesday as its third-quarter sales fell short of estimates despite continued growth form weight-loss drugs Ozempic and Wegovy.
The Danish drugmaker reported 71.31 billion Danish krone ($10.24 billion) in salesa 21% jump from the same time last yearbut still just below the DKK 72.17 billion ($10.36 billion) analysts had expected, according to estimates compiled by Visible Alpha. Despite the sales miss, Novo Nordisk's net income of DKK 27.3 billion came in higher than the DKK 26.66 billion analysts were expecting.
Sales of the company's obesity and diabetes drugs jumped 25% from the same time last year, while sales in North America surged 31% in the quarter. The company has faced questions from U.S. lawmakers about why its products are so much more expensive in the U.S. thanEuropean countries.
"The sales growth is driven by increasing demand for our GLP-1-based diabetes and obesity treatments, and we are serving more patients than ever before," Novo Nordisk CEO Lars Fruergaard Jrgensen said.
The company also narrowed its full-year guidance, projecting sales growth between 23% to 27%, with both the high and low end slightly narrower than the 22% to 28% projected growth previously. The same adjustment was made to operating profit projections, as Novo Nordisk now expects the metric to grow 21% to 27% year-over-year, compared to the previous range of20% to 28%.
Novo Nordisk's U.S.-traded shares were down 3% in morning trading Wednesday.
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Shares in Super Micro Computer (SMCI) tumbled in extended trading Tuesday after the troubled server maker provided preliminary fiscal first-quarter results that came in below Wall Street expectations and said its unable to predict when it will file its delayed 2024 annual report.
Tuesdays updates follow a turbulent period for the company, which last week saw its shares plunge around 45% after its auditor, Big Four accounting firm EY, resigned. That move came as speculation continues to mount over corporate governance challenges facing Super Micro amid allegations of accounting abnormalities
Super Micro Computer shares fell 16% to $23.30 in after-hours trading Tuesday. The stock, once an up-and-coming artificial intelligence (AI) favorite that hit a high around $123 in March, was down slightly year-to-date through Tuesday's close.
Below, we take a closer look at the technicals on Super Micro Computers weekly chart and point out major price levels to watch out for.
After trading within a six-month falling wedge, Super Micro Computer shares broke down below the pattern late last month.
Importantly, the move occurred on the highest weekly volume since late August, suggesting strong selling conviction among larger market participants, such as institutional investors and hedge funds.
Despite an early-November bounce, the stock sits poised to test lower levels again on Wednesday following the companys latest updates.
Lets identify several crucial support levels and a key resistance area on Super Micros chart that investors may be watching.
Firstly, its worth keeping an eye on the $23 level. This key location on the chart finds a confluence of support near the 200-week moving average and a trendline linking the lower level of a period of consolidation in the stock between May and October last year.
A decisive breakdown below this level opens the door for a move down to around $12, where the shares could attract buying interest near a series of highs in March and April last year that formed as part of the stocks impulsive move higher from January to July.
Further selling could see the stock revisit lower support near $10, an area around 64% below Tuesdays closing price where buy-and-hold investors may seek entries around a range of comparable trading levels that formed on the chart between November 2022 and April last year.
Upon an upswing, investors should monitor the $30 area. Investors who have purchased the stock at lower levels may look to lock in profits near a trendline that connects the top of a prior trading range on the chart from August 2023 to early January this year.
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Emerson Electric (EMR) shares surged 7% on Tuesday, securing one of the top performances in the S&P 500, after the provider of automation equipment, industrial software, and engineering products reported strong sales and profit for its fiscal fourth quarter.
Emerson also announced a proposal to buy the remaining stake of industrial software company Aspen Technology (AZPN), reflecting Emerson's strategic focus on the industrial automation market.
Emerson's net sales for the recently completed quarter came in at roughly $4.6 billion, up roughly 13% year-over-year. Earnings per share (EPS) of $1.48 for the fiscal fourth quarter grew 15% from the year-ago period.
Both figures exceeded analysts' consensus forecasts. Growth in the Intelligent Devices and Software and Control segments helped drive the strong performance.
Emerson's chief executive officer (CEO) touted the successful integration of the company's test and measurement systems assets, highlighting $100 million in synergies over the first year. The company enhanced this part of its business through the October 2023 acquisition of software-connected test and measurement firm National Instruments.
In 2021, Emerson merged its software units with competitor AspenTech and acquired a 55% position in the combined entity. The new proposal to buy out the remaining stake values AspenTech at a total of $15.1 billion, meaning the prospective transaction would cost Emerson just more than $6.5 billion.
CFRA Research analysts reportedly said they were unsurprised by Emerson's desire to gain full control of AspenTech. In the wake of the pandemic and numerous high-profile labor disputes, manufacturers are likely to maintain their focus on automation, the analysts noted.
Following Tuesday's gains, Emerson stock is trading more than 20% higher year-to-date.
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Despite uncertainty over the next occupant of the White House and the economic policies that may ensue, major U.S. equities indexes pushed higher as voters headed to the polls on Election Day. However, investors are likely bracing for market volatility if the outcome remains undetermined over the coming days.
The S&P 500 jumped 1.2% on Tuesday. The tech-heavy Nasdaq surged 1.4%, while the Dow added 1.0%.
The top performance in the S&P 500 on Election Day belonged to analytics software provider Palantir Technologies (PLTR), whose shares skyrocketed 23.4%. The surge in the stock came after Palantir reported better-than-expected revenue and net income for the third quarter. Palantir's CEO highlighted "unrelenting AI demand" as a key driver of the company's strong performance.
Engine manufacturer Cummins (CMI) also reported third-quarter sales and profits that exceeded analysts' forecasts, and its shares popped 9.0% higher. Although sales were essentially flat year-over-year, Cummins increased its earnings before interest, taxes, depreciation, and amortization (EBITDA), reflecting margin expansion.
Emerson Electric (EMR) shares surged 7.2% after the industrial technology and engineering company topped quarterly sales and profit estimates, boosted by growth in its Intelligent Devices segment. The firm also announced plans to acquire the remaining stake in Aspen Technology (AZPN), an automation software provider already under Emerson's partial control, in an effort to enhance its position in the industrial automation market.
Shares of Celanese (CE) plummeted 26.3%, the steepest drop of any S&P 500 stock on Tuesday, after the chemical supplier's third-quarter sales and profits fell short of expectations. Softness in key end markets, including paints, coatings, and construction, weighed on the company's performance, along with declines in the automotive and industrial sectors in the Western Hemisphere. Celanese also cut its dividend and announced plans to scale back production, suggesting it expects headwinds to persist.
Casino operator Wynn Resorts (WYNN) also reported weaker-than-expected top- and bottom-line results for the third quarter, and its shares dropped 9.3%. A slowdown in Wynn's Las Vegas operations contributed to the shortfall, while the company's results in Macau were mixed. Wynn also noted an investment of $18.2 million during the quarter in its joint venture that is under construction in the United Arab Emirates.
Archer-Daniels-Midland (ADM) shares fell 6.0% after the agricultural commodities maker canceled its scheduled earnings conference call and announced that it would restate previous financial results. The company said that, along with previously disclosed issues that led to a prior restatement, it has discovered additional accounting inaccuracies affecting several segments, noting that it is working to complete the restatements as soon as possible. ADM also provided preliminary third-quarter results that came in below forecasts.
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Tuesdays general election has been top-of-mind for American consumers and businesses lately, and corporate America will be happy for it to be over.
The word election has been mentioned during nearly two-fifths of S&P 500 earnings calls so far this quarter, according to a recent analysis of transcripts by FactSet Research. Executives are even talking about the election more than they did in 2020.
One of the most common statements executives have made about the election this quarter is that the uncertainty surrounding it has delayed some business. Companies across all sorts of sectors have said some of their customers, both commercial and consumer, are waiting until after the election results are known to commit to some big projects.
Executives at home improvement and agricultural products retailer Tractor Supply Co. (TSCO) said, spending leading up to the federal election will be dampened both just with distraction as well as a little bit of just wait-and-see mode. Technology manufacturer Jabil (JBL) echoed Tractor Supply's wait-and-see comments, noting clients in the electric vehicle (EV) and renewable energy industries were being particularly cautious.
IT products and services provider CDW Corp. (CDW), which has a unit dedicated solely to serving clients in government and education, said uncertainty about the election had dampened not only government spending, but also other public sector end markets, as well as spend from commercial customers.
Homebuilders have also felt the pinch, with election uncertainty clouding the outlook for interest rates. Executives at Pultegroup (PHM) said the nonstop barrage of news leading up to the election had created a lot of uncertainty that, along with expectations for lower interest rates next year, was keeping homebuyers on the sidelines.
Banks have noticed a reluctance on the part of clients to pull the trigger on financing for big investments as well. Despite recent interest rate cuts and the possibility of more, customers are hesitant to make capital expenditures until the resolution of the election, said executives at Regions Financial (RF). Fifth Third Bancorp (FITB) leaders said election unknowns were compelling businesses to pay down debt instead of investing in growth.
Several companies expressed optimism that business will pick up once the election is over. Homebuilder D.R. Horton's (DHI) chief operating officer, Michael J. Murray, said: I think everybody would be happy the election is over. I think that will help buyer sentiment and the ability to move forward with their life decision.
Executives at wholesale food distributor Sysco Corp. (SYY) said they were "cautiously optimistic" that Americans would dine out more after the election. Executives at waste collection company Republic Services (RSG) noted there is always "a little bit of paralysis" with an election, but that stalled "jobs are starting to move here in the fourth quarter."
Trade and tariffs have been the most-discussed policy issues so far this earnings season, according to FactSet's analysis. Seven companies, ranging from shoemaker Deckers Outdoors (DECK) to steel producer Nucor (NUE), have commented on the possibility of higher tariffs and assured investors they are preparing for various outcomes.
Despite referring often to the 2024 election, few companies have mentioned either of the candidates by namejust three S&P 500 company executives have mentioned Harris on their call, while six have mentioned Trump, according to the FactSet research.
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Hims & Hers Health (HIMS) reported third-quarter results that topped analysts' expectations Monday, lifting its shares, as the company said t plans to release a generic version of a Novo Nordisk (NVO) diabetes and weight-loss drug as early as next year.
The producer of copycat weight-loss drugs and other health products posted a 77% revenue jump year-over-year to $401.6 million.
Shares of Hims climbed nearly 5% intraday Tuesday before closing little changed.
Bank of America Securities estimates the company generated $63 million to $70 million of revenue in the latest period from weight-loss drugs, higher than the prior quarter. The bank's research noted that Hims plans to up its marketing spending in the fourth quarter, which the analysts see as an opportunity to continue to drive user growth.
The bank reiterated its "buy" rating and raised its price target from $25 to $27, roughly a 29% premium to the stock's close today.
Hims also said Monday that it plans to introduce a generic version of liraglutide, the Novo Nordisk drug sold under the names Victoza and Saxenda for diabetes and weight loss, respectively.
"We have already confirmed a core supplier for this addition, and over the next few months expect to finish completing test and batch validation, Hims Chief Executive Officer (CEO) Andrew Dudum said in Hims' third-quarter shareholder letter.
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The U.S. economy has been running smoothly for the most part, but that could change depending on what happens at the polls Tuesday, especially if the outcome isn't immediately clear.The close-run election poses a number of risks to the health of the economy, starting with the possibility of a prolonged election or disputed vote count. Late polls showed the presidential race is a tossup between Vice President Kamala Harris and former president Donald Trump in the battleground states that will determine the winner. The closer the election turns out to be, the higher the chances of the outcome being thrown into doubt, potentially disrupting the economy in the days ahead."It could take days or even weeks to determine the winner. Social unrest under such circumstances would not be surprising," Mark Zandi, chief economist at Moody's Analytics, wrote in a commentary. "This would be difficult for the already fragile collective psyche to bear, undermining investor, business and consumer sentiment. There is nothing but downside for the economy if the election is close and contentious."Indeed, the Associated Press did not call the outcome of the 2020 election until the Saturday following Election Day. The outcome could take even longer this time, especially if it comes down to Pennsylvania, where election officials are not allowed to begin counting mail-in ballots until Election Day.
Further disruptions could ensue if there are legal challenges to the results.
Voters have ranked the economy as one of their top considerations during this election.
By the numbers, the economy is in a healthy state, with low unemployment, a booming stock market, and solid economic growth. At the same time, a dysfunctional and unaffordable housing market has plagued the economy, and lower-income households have struggled to cope with the burst of post-pandemic inflation despite overall increases in wages. While prices of most things have stopped increasing rapidly, they haven't gone back down to pre-pandemic levels and likely never will.Regardless of who ultimately wins, a delay in deciding the election could disrupt financial markets and the broader economy. The two candidates have very different economic policies, and investors generally hate uncertainty about future conditions. Uncertainty can cause market volatility and big swings in the prices of financial assets."It is rare for the economy to perform as exceptionally as it is right now. But for it to continue in this way will require the presidential election and its outcome to play out in a reasonably graceful way," Zandi said. "This is probably a good time to buckle in."
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Shares of Wynn Resorts (WYNN) slumped Tuesday after the hotel and casino operator posted third-quarter results that missed analysts' estimates as its Las Vegas operations slowed.
The company reported a third-quarter loss of 29 cents per share, or adjusted earnings of 90 cents per share, with both measures missing analysts' estimates compiled by Visible Alpha. Revenue climbed 1.3% year-over-year to $1.69 billion, also short of forecasts.
Wynn's weaker-than-expected results came as its Las Vegas operating revenue declined 1.9% to $607.2 million, and adjusted property earnings before interest, taxes, depreciation, amortization, and restructuring or rent costs (EBITDAR) dropped 7.7% to $202.7 million.
The company had mixed results at its Macau properties, with operating revenue increasing 19.3% at Wynn Macau and declining 1% at Wynn Palace. It was 1.8% higher at Encore Boston Harbor.
Wynn noted that during the quarter it invested $18.2 million in its 40%-owned joint venture being built in the United Arab Emirates. CEO Craig Billings said the company is confident the Wynn Al Marjan Island resort "will be a 'must see' tourism destination in the UAE.
Wynn Resorts shares were down nearly 10% in Tuesday afternoon trading and have lost over 5% of their value since the start of the year.
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