Category: investing.com

The strong results and outlook sent Nutanix shares soaring in after-hours trading. Investors are now looking forward to the company’s next earnings report to see if the momentum can be sustained.

Stellantis, the parent company of Chrysler, announced on Wednesday that it may limit shipments of gasoline-powered vehicles to dealers in states that have adopted California’s strict emissions rules. The company said that in order to comply with the more stringent standards, they may be forced to allocate fewer conventional gasoline engine vehicles to California states and more to other states that have not adopted the rules.

The California Air Resources Board, which sets emissions rules for the state, has asked the U.S. Environmental Protection Agency for approval for its rules adopted in August that would allow the state to ban the sale of gasoline-only powered vehicles by 2035 and require at least 80% electric-only models by then.

Stellantis is investing $35 billion to support the introduction of 25 electric vehicles by 2030 and has asked California about joining the agreement with other automakers that would allow Stellantis to comply with alternative California standards based on their nationwide sales. The company has previously been forced to pay federal penalties for not meeting U.S. fuel economy requirements.

The move by Stellantis is part of a larger trend of automakers transitioning to electric vehicles in order to meet emissions standards. It is yet to be seen how this will affect dealerships and consumers in the states that have adopted the California standards.

WeWork Inc announced on Wednesday that Chief Financial Officer Andre Fernandez will be resigning on June 1. Kurt Wehner, who joined WeWork in October 2020 and previously served as the accounting chief at media firm Discovery Inc, will take over as CFO. Fernandez’s resignation was not a result of any disagreement, the company said.

WeWork has been struggling to turn a quarterly profit since going public and has been impacted by mass layoffs across the tech sector over the past nine months. In March, the company struck deals to cut its debt by about $1.5 billion and extend the date of some maturities to preserve cash. WeWork shares have fallen about 87% so far this year, with the company now having a market capital of $404.7 million as of last close.

Outgoing CEO Sandeep Mathrani thanked Fernandez for his partnership and dedication to the company, saying he helped to restructure the company’s debt and drive it towards EBITDA profitability.

By Aishwarya Nair

Shares of ELF Beauty Inc (NYSE:ELF) surged after the cosmetics maker reported better-than-expected fourth quarter results and raised its outlook for the year. The company reported adjusted earnings per share of 42 cents, compared with the estimate of 20 cents a share, and revenue rose 78% to $187.4 million. Gross margins rose due to pricing, lower transportation expenses and cost savings. For the full fiscal year 2023, net sales increased 48% to $578.8M. CEO Tarang Amin said, “We believe we are still in the early innings of unlocking the full potential we see” for the company. For guidance, Elf said it sees fiscal year 2024 sales of $705M to $720M, a 22% to 24% gain, and adjusted earnings per share of $1.73 to $1.76. Both outlooks beat the current consensus estimate. Shares were up nearly 10% in after-hours trading and are up more than 56% so far this year.

Overall, Snowflake’s Q1 results were better than expected, but the weak guidance caused investors to sell off the stock. The company’s appointment of Steve Burke to its Board of Directors and John McMahon’s departure after 10 years of service were also noteworthy.

Nvidia Corporation (NASDAQ:NVDA) reported strong fiscal first-quarter results on Wednesday, with earnings per share of $1.09 on revenue of $7.19 billion. This beat analyst estimates of $0.92 on revenue of $6.52B. The chipmaker’s data center business reached a record $4.28B, up 14% from a year ago and up 18% from the previous quarter. This helped offset weakness in its gaming business, with revenue down 38% to $2.24B from a year ago. NVIDIA also provided upbeat guidance for fiscal Q2, with revenue in a range of $11.00B, plus or minus 2%. This was ahead of Wall Street estimates for $7.13B. Following the report, NVIDIA shares were up 19% in after-hours trade. The company attributed the strong performance to growing interest in artificial intelligence and the transition from general purpose to accelerated computing.

Nvidia Corp reported a surge in first-quarter revenue and profit that beat Wall Street estimates, driven by strong demand for its artificial-intelligence chips. The company’s stock jumped 21% to a record-high of $370 in extended trade, increasing its market value to more than $900 billion. Nvidia’s AI chips are used to power ChatGPT and many similar services, and the company is now “significantly increasing” its supply to meet surging demand. Analysts believe Nvidia reallocated some supply-chain capacity away from the slumping PC gaming market to its data center AI chips. The company reported adjusted revenue of $7.19 billion, beating analyst estimates of $6.52 billion. Net income rose to $2.04 billion, or 82 cents per share, from $1.62 billion, or 64 cents per share, a year earlier. Excluding items, the company earned $1.09 per share in the first quarter, beating estimates of 92 cents.

Stocks were down on Wednesday as debt ceiling negotiations stalled and the Federal Reserve’s latest policy meeting minutes showed officials divided on the direction of interest rates. Investors are concerned that a possible default could cause chaos in financial markets, and the rising volatility index is a sign of unease. GDP reading, earnings from retailers such as Costco, Dollar Tree, and Gap, and Workday’s report are all expected to affect markets tomorrow.

By Blake Brittain

The U.S. Solicitor General has urged the Supreme Court to reject an appeal by Apple Inc and Broadcom Inc stemming from their $1.1 billion trial loss to the California Institute of Technology in a patent infringement case. The companies had argued that they should have been allowed to challenge the patents’ validity at trial, but the Federal Circuit upheld the decision to bar the invalidity arguments because Apple previously could have raised them in its petitions for Patent Office review of the patents.

The Solicitor General said in her Tuesday brief that the Federal Circuit interpreted the law correctly. Caltech has also sued Microsoft Corp, Samsung Electronics Co, Dell Technologies Inc and HP Inc for infringing the same patents in separate cases that are still pending.

A jury in 2020 ordered Apple to pay Caltech $837.8 million and Broadcom to pay $270.2 million. The Federal Circuit took issue with the amount of the award and sent the case back last year for a new trial on damages, which is yet to be scheduled.

The companies told the justices that the Federal Circuit misread the law, which only bars arguments that could have been raised during the review itself. However, the Solicitor General’s filing suggests that the Supreme Court is unlikely to overturn the Federal Circuit’s ruling.