Coca-Cola is one of the most mentioned companies in the U.S. across all news items in the past 12 hours, according to Factiva data. The soft-drinks maker posted first-quarter profit and revenue that topped expectations and raised its full-year revenue forecast on higher prices. Dow Jones & Co. owns Factiva.
Coca-Cola’s First-Quarter Tops Street Views Read Post »
CFRA, an independent research provider, has provided MT Newswires with the following research alert. Analysts at CFRA have summarized their opinion as follows: We raise our target price to $906 from $885, reflecting 54.6x our 2025 EPS, justified by LLY’s robust growth outlook. We lift our 2024 EPS estimate to $13.54 from $12.50 and 2025’s to $16.59 from $15.53. LLY posted Q1 EPS of $2.58 vs. $1.62, a remarkable +59% Y/Y, $0.09 above the consensus as gross margin expansion was above expectations (82.5% in Q1 2024 vs. 78.4% in Q1 2023). Q1 revenues, up by an eye catching 26% Y/Y, were $162M below consensus estimates and $230M below our forecast as sales of Mounjaro ($1.8B) and Zepbound ($517M) were slightly lower than anticipated. Yet, LLY raised its 2024 sales guidance by $2B as it expects the strong demand for Mounjaro and Zepbound to continue and has improved visibility to boost
CFRA Reiterates Strong Buy Opinion On Shares Of Eli Lilly And Company Read Post »
The following is a summary of the McDonald’s Corporation (MCD) Q1 2024 Earnings Call Transcript: Financial Performance: McDonald’s reported global comparable sales growth of nearly 2% in Q1 2024, marking the 13th consecutive quarter of positive growth. The average franchising cash flow remained strong despite the elevated cost environment. Adjusted earnings per share for the quarter were $2.70, an increase of about 2% in constant currencies. The adjusted operating margin for the quarter was nearly 45%. Inflation from 2023 will carry over into early 2024, impacting both food and paper costs as well as labor. Expectations for operating margins in 2024 are in a ‘mid to high 40s range,’ but it remains uncertain due to macroeconomic factors. Business Progress: McDonald’s is focusing on providing affordable meals by launching everyday value menus across several international markets. The McDonald’s mobile app and digital engagement initiatives are driving increased engagement and frequency from
McDonald’s(MCD.US) Q1 2024 Earnings Conference Read Post »
CFRA, an independent research provider, has provided MT Newswires with the following research alert. Analysts at CFRA have summarized their opinion as follows: We lower our target by $11 to $372, 34x our ’24 EPS view, below IT’s three-year average (~36x) on decelerating growth. We lift our ’24 EPS view by $0.32 to $10.95 and lower ’25’s by $0.02 to $12.90. IT posted Q1 sales of $1.47B (+5% Y/Y, near consensus) and EPS of $2.93 (+2% Y/Y, above consensus). Renewal issues with tech vendor customers hurt contract value growth during Q1 (+6.9% Y/Y ex-FX), with Global Technology Sales (78% of total CV) up just 5.4%. While this was well telegraphed, with a high portion of business up for renewal in Q1, we remain cautious on calling a bottom given continued macro headwinds. We similarly view total wallet retention, which fell 320 bps Y/Y (80 bps Q/Q) to 102.8%. Consulting (+6%)
CFRA Maintains Sell Recommendation On Shares Of Gartner, Inc. Read Post »
MSCI (MSCI) is a quality business at a discount, with the recent stock pullback already pricing in an “unlikely worst-case scenario” and the company is likely to see upside support from buybacks, BofA Securities said in a note Tuesday. BofA said it expects multiple expansions as investors are likely to be attracted to a high-quality long-term growth story at a discount. The company’s shares derated after it reported heavy Q1 cancellations, which management “indicated was a one-off event and bad timing,” the note said. “We think the business is in better shape than valuation reflects, although slowing ESG sales and weak near-term Index subscription growth will cap upside,” BofA said, adding it expects $425 million of buybacks this year “with room for upside.” “At a 7% discount to peers, MSCI shares are likely to attract incremental investor interest, in our view,” the note said. “MSCI is a double-digits EPS compounder
MSCI Shares Already Price In Worst-Case Scenario, BofA Says in Upgrade Read Post »
Domino’s Pizza Inc (NYSE:DPZ) shares were climbing Tuesday after the company reported better-than-expected first-quarter results. The results came amid an exciting earnings season. Here are some key analyst takeaways from the release. BMO Capital Markets On Domino’s Pizza Analyst Andrew Strelzik reiterated an Outperform rating while raising the price target from $535 to $575. Domino’s Pizza reported first-quarter earnings of $3.58 per share, surpassing consensus of $3.41 per share, with the beat being “driven by stronger comps, higher supply chain profits, and a lower tax rate,” Strelzik said in a note. The company “continues to realize meaningful domestic business momentum,” with its partnership with Uber Technologies Inc’s (NYSE:UBER) Uber Eats and loyalty revamp, “as well as more vocal marketing,” he added. “DPZ’s strategy is driving broad momentum, including among the more challenged low-income consumer cohort, which should extend through the remainder of 2024 and beyond,” the analyst further wrote. TD Cowen On Domino’s Pizza Analyst Andrew Charles maintained
Microsoft’s (MSFT) collaboration with Conduent (CNDT) underscores the “unique AI leadership position” held by the software giant, Macquarie said in a report emailed Tuesday. Conduent on Monday announced an initiative with Microsoft aimed at using the Azure AI platform to improve healthcare claims management, customer service, and fraud detection. “We think Microsoft’s AI strategy uniquely positions it as the ultimate adoption beneficiary,” the Macquarie analysts said. Since its January 2023 investment in OpenAI, the company has steadily advanced its AI deployment, moving from testing to broader availability, Macquarie said, adding that “we view this recognition by Conduent as significant, as it highlights the importance of safety to a successful initial AI deployment.” Microsoft’s continued prioritization of its Azure platform has driven significant revenue growth, with Azure AI Services estimated at $4.1 billion in annualized run rate revenue, Macquarie said. Conduent plans to leverage Microsoft’s Azure AI platform across three pilots,
Nike’s (NKE) recent challenges stem from the loss of talent as a combination of layoffs and voluntary departures hurt morale, productivity and near-term performance, Wedbush said Tuesday in a report, citing an interview with Peter Orcutt, who worked at the footwear company for 24 years. The company lacks any near-term catalyst for product innovation, and despite new releases, is missing a “groundbreaking” release for the Olympics in three months, Wedbush said. Orcutt, a senior leader who left in a major round of layoffs in early 2020, said that the company pursued a direct-to-consumer strategy too aggressively, which damaged its wholesale partnerships and pushed retailers to seek alternatives, the Wedbush report said. Nike rival Adidas is gaining ground, and early views of Adidas’s 2025 products impressed industry insiders, Orcutt said, according to the Wedbush report. “There are several key challenges that the company must work through,” Wedbush said. Partly because “one
Nike Faces Talent Loss, Lacks Innovation Spark Amid Aggressive Competition, Wedbush Says Read Post »
CFRA, an independent research provider, has provided MT Newswires with the following research alert. Analysts at CFRA have summarized their opinion as follows: Our 12-month target of $195, up $29, reflects a 7.1x multiple of projected 2024 operating cash flows, in line with MPC’s historical average. We raise our 2024 EPS view by $0.01, but lower 2025’s by $0.56 to $15.42. Q1 EPS of $2.58 vs. $6.09, in line with consensus. Q1 adj. EBITDA (~$3.3B) fell 38% Y/Y due to MPC’s Refining segment (-51%). Q4 refining utilization (82%) fell seven percentage points Y/Y, while throughput volumes (~2.7 mb/d) fell 6% due to turnaround activity. We believe MPC could face headwinds in 2024. The U.S. Energy Information Administration forecasts flat Y/Y refined product demand growth in 2024; however, concerns surrounding economic growth, while U.S. consumer savings have become almost exhausted, could weigh heavily on refined product demand. At the same time,
CFRA Reiterates Hold Opinion On Shares Of Marathon Petroleum Corporation Read Post »
By Emily Bary and Tomi Kilgore Revenue was slightly above forecasts, but same-store sales growth came up short McDonald’s Corp. said Tuesday its value message continued to resonate with customers during tough times, as the fast-food giant reported first-quarter revenue that rose above Wall Street’s estimates and said it will be testing a bigger burger in the coming months. That helped the stock (MCD) reverse an early sharp loss to trade little changed, even though the company missed profit expectations for the first time in more than two years and also missed on same-store sales. “And as we look to further build on our leadership in beef, or team of chefs from around the world have created a larger, satiating burger,” said Chief Financial Officer Ian Borden on the post-earnings call with analysts, according to an AlphaSense transcript. “We’ll be testing this burger in a few markets later this year,
McDonald’s Stock Bounces as Revenue Beat, New ‘Larger’ Burger Offset Profit Miss Read Post »
Moderna’s (MRNA) top-line sales are expected to start growing in 2025 as three products are anticipated to be approved and multiple products are expected to be launched in the next 12 to 18 months, Oppenheimer said in a note Monday. “The [respiratory syncytial virus] vaccine approval is slated for early May 2024, while Phase 3 flu monotherapy and Phase 3 flu/COVID-19 vaccine trials should read out in 2024,” the firm said. Oppenheimer believes that investors will focus on important regulatory and clinical catalysts over the next 12 to 18 months as they “get comfortable with 2024 sales and [operating expenditure] burn guidance and the burgeoning pipeline.” The firm expects questions to focus on such catalysts on the company’s Q1 earnings call on Thursday. Oppenheimer has an outperform rating on Moderna’s stock and $142 price target.
Moderna’s Top-Line Sales Seen to Start Growing in 2025, Oppenheimer Says Read Post »
Eli Lilly & Co. is one of the most mentioned companies in the U.S. across all news items in the past 12 hours, according to Factiva data. The company reported first-quarter financial results and said demand for its weight-loss drugs, including Zepbound, and for diabetes-drug Mounjaro were strong. The company plans to expand manufacturing capacity to meet demand, The Wall Street Journal reported. Dow Jones & Co. owns Factiva.
Eli Lilly Reports Strong Sales of Weight-Loss, Diabetes Drugs Read Post »