Tesla is scheduled to report first-quarter earnings after the bell on Tuesday and provide an update on its current and future outlook amid weak investor sentiment. This comes amid slowing global demand for EVs and price pressure from Chinese rivals.
The electric vehicle maker’s stock price has fallen more than 40% since the beginning of the year after disappointing fourth-quarter results, weak and unspecified full-year delivery forecasts, and about 13% shortfall in delivery dates. It’s falling.
The company is expected to report adjusted earnings of $0.52 per share on revenue of $22.31 billion, according to Bloomberg consensus estimates. This is the first decline in revenue for the company in four years.
Operating profit is expected to be $1.49 billion, down 40% from the previous year. In terms of non-GAAP measures, Wall Street expects adjusted net income to be $1.79 billion and EBITDA to be $3.32 billion.
Investors will also be keeping an eye on Tesla’s future product roadmap.
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This comes after Tesla on Friday sought to boost demand for EVs by lowering the prices of three of its five models in the United States. The company then lowered prices around the world over the weekend, including in China, the Middle East, Africa and Europe.
It also lowered the U.S. price of the Model Y, Tesla’s most popular model and best-selling EV, as well as the older and more expensive Models X and S.
These price cuts bring the starting price of the Model Y down to $42,990 (£34,874), the Model S to $72,990, and the Model X to $77,990. He also reduced the US price of fully autonomous driving assistance software from $12,000 to $8,000. .
Primark owner Associated British Foods (ABF) has surged to the top of the FTSE 100 (^FTSE) after reporting a 39% rise in profits in the first half of its financial year due to new store openings and price increases.
Pre-tax profits rose 37% year on year to £881m in the six months to March. The group now expects a “significant increase” in full-year profit.
Primark’s sales grew due to higher prices rather than sales volumes. That means people paid more money for fewer goods.
Primark’s first-half revenue rose 7.5% to £4.5bn, with underlying sales up 2.1%. Operating profit margin was 11.3%, up from 8.3%. This is due in part to improvements in the cost of products purchased.
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The group added that Primark would roll out its click-and-collect service more widely in the UK following successful trials. Unlike many of its competitors, it does not currently offer home delivery services.
AB Foods chief executive George Weston said the group had benefited from “a return to some degree of normalcy in the market and supply chain” and that the results were “a very strong financial statement”. ”.
The stock price rose nearly 10% on the news.
Shares of Swiss drugmaker Novartis rose as much as 5% on Tuesday after it raised its full-year outlook after reporting better-than-expected first-quarter results.
The company said that in 2024, net sales are expected to grow at a rate in the low single digits to low double digits, and adjusted operating income is expected to grow at a rate in the low double digits to mid-teens. Ta.
Net sales rose 11% in the first three months of the year, and core operating profit rose 22% over the same period.
“Our performance was broad-based across all of our key growth brands and geographies, allowing us to raise our full-year 2024 outlook,” boss Basu Narasimhan said in a statement.
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“The momentum in our business and pipeline gives us continued confidence in our medium- to long-term growth prospects.”
Treasurer Harry says newly approved use of Cosentyx to treat hidradenitis suppurativa, a painful, scarring, acne-like skin disease, is rapidly gaining popularity and is often given as a subcutaneous injection. Alternative new intravenous infusion options also boosted demand. Kirsch said.
“New launches in the U.S. and Europe were much better than expected,” he said on a media conference call.
Taylor Wimpey (T.W.L.)
Shares in Taylor Winpay rose as much as 1% in the London market as the British housebuilder reiterated its outlook for 2024 due to higher sales rates during the crucial spring selling period.
The company also reaffirmed its target of building around 9,500 to 10,000 homes in the UK this year, excluding joint ventures. The midpoint of this range is about 7% lower than last year’s 10,438 units.
As of April 21st, the net private sales rate was 0.73 units per store, higher than the 0.67 unit sales rate from the beginning of the year to February 25th.
“While we note continued market uncertainty and affordability challenges, we remain confident of good mortgage availability and customer confidence,” CEO Jenny Daly said in a trading statement. It is gratifying that the market continues to be stable, supported by continued sentiment.”
“This is encouraging, but we don’t know what assumptions are being made about house prices and mortgage rates to support that growth,” said Oli Creasy, real estate research analyst at Quilter Cheviot.
“Given these results, we expect little change in the stock price or expectations.”
JD Sports (J.D.L.)
JD Sports has agreed to buy US rival Hibbett for around $1.1bn (£899m) as it looks to expand its business in the US.
The transaction, which will be financed by $300 million in cash and a $1 billion expansion of existing banking facilities, will cost Hibbett $87.50 per share, compared to Monday’s closing price of $72.49. This represents his 20% premium.
JD Sports CEO Regis Schultz said the move accelerates the company’s U.S. growth plans. “Hibbett’s efforts are highly complementary and will further increase our presence in communities in the southeastern United States where we currently have a limited presence,” he said.
It comes as Britain’s biggest sportswear retailer comes under pressure globally, following a weak outlook for sports apparel makers such as Nike (NKE) and Puma (PUM.DE).
Hibbett, which also operates sporting goods chain City Gear, has 1,169 stores across the United States. JD Sports said the group’s expansion would result in combined North American revenues of around £4.7bn, adding that the region’s contribution to total sales would increase from 32% currently to around 40%.
Following the news, JD Sports shares rose 7% in the London market.
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