Author: fortraders

Alibaba (NYSE:BABA) reported better-than-expected earnings for the first quarter of 2021, but missed revenue expectations. The Chinese technology giant reported Q1 EPS of RMB10.71, RMB1.25 better than the analyst estimate of RMB9.46. Revenue of RMB208.2 billion in the quarter, which rose 2% YoY, was below the consensus estimate of RMB209.02B. Online physical goods GMV on Alibaba’s Taobao and Tmall platforms, excluding unpaid orders, declined mid-single-digit year-over-year.

Chairman and CEO Daniel Zhang also announced the company’s approval of a full spin-off of the Cloud Intelligence Group via a stock dividend distribution to shareholders. The intention is for it to become an independent publicly listed company, with the target to complete the spin-off in the next 12 months.

Ford Motor Co is recalling 422,000 sport utility vehicles in the U.S. due to a potential issue with the rear view camera. The recall covers 2020 through 2023 Ford Explorer, Lincoln Aviator, and 2020-2022 Lincoln Corsair SUVs with a 360-degree camera. Ford said it is working with suppliers to identify the root cause and provide a remedy as quickly as possible.

The National Highway Traffic Safety Administration (NHTSA) said the loss of the rear view camera image can reduce the driver’s rear visibility, increasing the risk of a crash. Ford said it had reports of 17 minor crashes relating to the recall issue and more than 2,100 warranty reports but no reports of injuries.

Owner notification letters are expected to be mailed on June 26. The NHTSA in August 2021 opened an investigation after Ford in 2020 recalled 620,246 vehicles for another rear camera issue. The investigation is reviewing if Ford had recalled the vehicles in a timely fashion and if it recalled enough vehicles.

Regency Centers Corporation (NASDAQ:REG) has announced the acquisition of Urstadt Biddle Properties Inc (NYSE:UBA) in an all-stock deal valued at $1.4 billion. The transaction will help Regency expand its footprint in suburban trade areas, offering a highly aligned demographic and merchandising profile.

Under the terms of the deal, Urstadt stockholders will receive 0.347 of a newly-issued REG share for each Class A Common (UBA) and Common (UBP) share they own, representing a premium of 21% to Urstadt’s last close.

The acquisition is expected to be immediately accretive to Regency’s funds from operations and net asset value per share. It is also expected to generate cost savings of approximately $10 million annually.

The transaction is subject to customary closing conditions and is expected to close in the fourth quarter of 2020.

Battered shares of PacWest Bancorp and Western Alliance Bancorp edged higher in premarket trading on Thursday as investors bet that the worst of the regional banking turmoil was over. PacWest Bancorp, which is currently exploring strategic options, climbed 7.9%, while Western Alliance climbed 4.2%.

The U.S. regional banks have found some reprieve this week thanks to favorable brokerage actions following Western Alliance’s deposit disclosure, along with hopes that Washington will reach a deal to raise the U.S. debt ceiling. Fund managers and billionaire investors have also doubled down on mid-sized lenders, hoping to buy the dip.

The KBW Regional Banking Index jumped 7.2% on Wednesday, recording its biggest percentage gain in nearly two years. Among other movers on Thursday, Zion Bancorp climbed 1.3% and First Horizon added 2.4%. Charles Schwab Corp edged about 1% lower after the financial services firm said it was looking to raise $2.5 billion in debt.

Walmart Inc. reported strong first quarter results, beating analysts’ expectations and raising its annual sales and profit targets. The retail behemoth drew from price-conscious shoppers trading down to cheaper meat products and store brands, easing worries of consumer spending softening due to inflation. Comparable grocery sales grew in the low double-digits in the quarter in the United States, driven by strong demand for food and increased purchases from wealthier households. Walmart’s strong results are in stark contrast to smaller rival Target’s bleak second-quarter forecast, which it blamed on weak consumer demand. Operating income rose 17.3% in the first quarter, in part due to higher contributions from its advertising, delivery and fulfillment services businesses. Net revenue rose 7.6% to $152.30 billion in the first quarter, beating estimates of $148.76 billion. Walmart now expects full-year earnings per share in the range of $6.10 to $6.20 compared to the prior outlook of $5.90 to $6.05.

Walmart (NYSE: WMT) reported first quarter earnings that beat analyst estimates by $0.17. Revenue for the quarter came in at $152.3B, topping the consensus estimate of $148.5B. The company also provided guidance for FY 2024 EPS of $6.10-$6.20, versus the analyst consensus of $6.14. Walmart’s stock price closed at $149.53, up 2.11% in the last 3 months and 25.58% in the last 12 months. According to InvestingPro, Walmart’s Financial Health score is “good performance”.

Investors can stay up-to-date on all of the upcoming earnings reports by visiting Investing.com’s earnings calendar. Additionally, they can check out Walmart’s recent earnings performance and financials here. Walmart’s stock price has seen 7 positive EPS revisions and 19 negative EPS revisions in the last 90 days. See Walmart’s stock price’s past reactions to earnings here.

Advisers to the U.S. Food and Drug Administration (FDA) will discuss Pfizer Inc’s experimental respiratory syncytial virus (RSV) vaccine on Thursday. If approved, it would be the first available maternal shot to protect babies from RSV, a virus that can cause severe illness in infants.

The FDA staff reviewers deemed the safety data for Pfizer’s vaccine “generally favorable” and the shot was 82% effective in a late-stage trial in preventing severe RSV infections in infants when given to expecting mothers in the second half of their pregnancy.

Development of RSV vaccines has picked up pace in recent years after researchers were able to better understand the virus’ structure and maintain a type of protein found on its surface in a form that could activate the body’s immune response. Sanofi and AstraZeneca’s antibody drug nirsevimab is also under FDA review to prevent RSV in infants.

If Pfizer’s vaccine is approved by the FDA, the U.S. Centers for Disease Control and Prevention will then need to sign off on its use to make it widely available to pregnant mothers.

Boot Barn Holdings (NYSE:BOOT) shares dropped 14% after the western and workwear retailer slashed its full-year guidance. The company reported EPS of $1.51 on revenue of $425.7 million for its fourth fiscal quarter, missing the average analyst estimate for earnings of $1.46 on revenue of $442.5M. Same-store sales fell 5.5% as retail store same-store sales dropped by 3.3% while e-commerce same-store sales decreased by 18.4%.

For this quarter, the company sees EPS of $0.82 on revenue of $360.5M, missing the consensus for earnings of $1.17 on sales of $388.7M. BOOT slashed full-year guidance so it now expects EPS of $4.85 on revenue in the range of $1.69-1.723B, missing the consensus for earnings of $5.52 per share on sales of $1.67B.

Analysts have lowered their price targets and remain optimistic on the long-term growth potential of the company. Citi analysts slashed the price target by $9 to $84 per share and BofA analysts moved to an $80 per share price target. Despite the near-term demand being soft, analysts remain bullish on BOOT’s potential to take share in the highly fragmented western wear market.

Canada Goose Holdings Inc. is expecting a strong rebound in sales this year, thanks to a sharp rebound in the key luxury market of China. The Toronto-based luxury winterwear maker reported a 65.4% jump in revenue from its Asia Pacific segment in the quarter ended April 2, compared to a 5.2% drop in the previous quarter. This has buttressed sales at a time when luxury shoppers in the United States have paused a post-pandemic splurge on high-end goods. The company is forecasting fiscal 2024 revenue between C$1.40 billion and C$1.50 billion, compared with analysts average estimate of C$1.33 billion. U.S.-listed shares of the company jumped about 6% in premarket trading. Canada Goose is betting that the rebound in China will help it ride out a slowdown in U.S. demand.