FINWIRES · TerminalLIVE
FINWIRES

S&P 500 Companies' Quarterly Earnings, Revenue Growth Accelerates, Oppenheimer Says

By
S&P 500 Companies' Quarterly Earnings, Revenue Growth Accelerates, Oppenheimer Says

S&P 500 companies' quarterly earnings and revenue growth accelerated, compared with figures from a week ago, with the bottom-line remaining well ahead of Wall Street's expectations as the reporting season approaches its close, Oppenheimer Asset Management said Tuesday.

Some 95% of companies in the benchmark equity index have reported results in the latest cycle, with earnings up about 28% from a year earlier and revenue rising 11.1%. Last week's report by the brokerage showed profit and sales growth at 25% and 10.5%, respectively, based on financials reported by 91% of the index constituents.

Ahead of the earnings season, FactSet put expected earnings growth at 12.6% year over year, Oppenheimer said.

"The (first-quarter) earnings season rolled on, with many firms reporting strong results and positive guidance," Oppenheimer Asset Management Chief Investment Strategist John Stoltzfus said in a note to clients. "Bears, skeptics, and nervous investors have been able to take some profits without (the fear of missing out) within what appears to us a bull market that persists having legs to run further."

Among sectors, technology and communication services outperformed in terms of earnings, with profits up by about 50% and 47% from a year earlier, respectively. Healthcare was the sole decliner, showing bottom-line down 3.1%.

Tech also led the chart for revenue growth, with a 29% jump from a year earlier, followed by utilities' 14.1% gain. All 11 S&P sectors saw sales growth on an annual basis, the report showed.

Costco Wholesale (COST), Marvell Technology (MRVL), Salesforce (CRM), and Dell Technologies (DELL) are some of the major companies slated to report this week.

"With (the first-quarter) earnings season winding down, increased attention will be focused on developments to finding resolution to the (US/Israel) conflict with Iran and the economic disruption that it brought," Stoltzfus said Tuesday.

Iran's army said it has a "legitimate" right to respond to any violation of a ceasefire after the US military conducted strikes targeting Iranian missile launch sites and boats around the crucial Strait of Hormuz, CNN reported. The two countries are in a fragile ceasefire and have yet to agree to a permanent framework to end their war, which started at the end of February.

Price: $1001.60, Change: $-26.64, Percent Change: -2.59%

Related Articles

Delivery Hero Shares Jump After Uber Takeover Approach
US Markets

Delivery Hero Shares Jump After Uber Takeover Approach

Delivery Hero (DHER.F, DHER.VI) shares climbed over 10% on Monday afternoon on Xetra after it confirmed an indicative takeover proposal from Uber Technologies (UT8.F).The German online food delivery company on May 23 said it received a proposal of 33 euros per share from the US-based ride-hailing company, without providing additional details on the bid. However, it noted that it "remains fully focused on executing its strategic review."The approach came after Uber raised its stake in Delivery Hero to 19.5%, with an additional 5.6% in options, according to the German company's May 18 disclosure. At the time, Delivery Hero welcomed the additional investment as "a further endorsement of its platform and Everyday App strategy."On Sunday, London's Financial Times reported that Uber's board convened May 23 to discuss further raising its bid after one of Delivery Hero's largest shareholders rejected a proposal worth 38 euros per share, which would have valued the target at more than 11.5 billion euros. Uber is also looking into raising its indirect ownership of Delivery Hero to over 30% through the purchase of derivatives, according to sources.Several shareholders of Delivery Hero told the newspaper that they were eyeing a price over 40 euros per share, or a valuation of 13 billion euros for the company. Such a price tag would represent a 19% premium on Delivery Hero's closing price on May 22.Another food delivery company, DoorDash, also made contact with Delivery Hero shareholders but did not purchase any shares, the FT reported.Uber shares fell 1% on Xetra in the afternoon.

$DHER.F$DHER.VI$UT8.F
Thailand's Trade Deficit Rises to Record High in April
US Markets

Thailand's Trade Deficit Rises to Record High in April

Thailand struck a record high trade deficit in April as imports surged 45% year over year in dollar terms during the month, according to data from the Ministry of Commerce.The Southeast Asian kingdom recognized a deficit of $10 billion in April, up from $3.04 billion in the year-ago period.The figure topped a median estimate of a $5.3 billion deficit during the month, Bloomberg reported separately the same day.Thailand's trade deficit is the widest on record since January 1991's $1.25 billion figure, the news outlet said.Imports soared to $41.6 billion in April, with electrical circuit boards, electrical machinery and components, jewelry, crude oil, and machinery comprising the top five, in that order, the ministry said.Exports fell 10% year over year to $31.6 billion, led by computer equipment and parts, jewelry, automobiles, telecommunications equipment, and rubber products, in that order.In local currency terms, exports jumped 19% year over year to 1.022 trillion baht, while imports surged 40% to 1.363 trillion baht.The figure led to a trade deficit of 340.7 billion baht, 201% higher than the 113.3 billion baht deficit recorded a year earlier.January-April cumulative exports jumped 10% to 4.003 billion baht, while imports grew 26% to 4.680 trillion baht, equivalent to a trade deficit of 677.2 billion baht.Thailand's strong imports and widening trade deficit could continue should energy prices stay high, and artificial intelligence helps boost trade flows, Bloomberg said, citing Trade Policy and Strategy Office director-general Nantapong Chiralerspong.

^SET
Nexi Shares Gain After State Investor CDP Equity Signals Planned Stake Raise
US Markets

Nexi Shares Gain After State Investor CDP Equity Signals Planned Stake Raise

Nexi's (NEXI.MI) share price jumped more than 4% in early morning trading in Milan after Italian state-backed investor CDP Equity on Monday announced plans to increase its stake in the payments group to as much as 29.9%.To execute the increase, the CDP Equity board approved a strategy to gain exposure to up to 8% of Nexi through derivative contracts that could later be converted into shares, subject to regulatory approvals. The investor may also acquire additional Nexi shares directly on the open market.CDP Equity clarified that it does not intend to launch a tender offer for Nexi, describing the move instead as a sign of confidence in the company's "strong innovative and industrial growth." The investor highlighted Nexi's role in processing over 1.8 trillion euros in digital transactions across more than 25 countries, adding that the group could play "a key role in the European development of a technological infrastructure supporting the digitalization of money."CDP Equity currently owns 19.14% of Nexi. According to the company's website, its largest shareholder is US private equity firm Hellman & Friedman, which holds a 22.23% stake.Separately, the payments company has continued to attract interest from private equity company CVC Capital Partners (CVC.AS). London's Financial Times reported in late April that CVC was considering a 9 billion-euro takeover offer for Nexi. If pursued, it would be CVC's third attempt at purchasing the payments company.Mediobanca Banca di Credito Finanziario, JPMorgan and PricewaterhouseCoopers Business Services are assisting CDP Equity as financial advisers for the deal, which remains subject to regulatory clearances.

$CVC.AS$NEXI.MI