The Walt Disney Co. (DIS) reported third-quarter revenue and profit above analysts’ estimates; Novo Nordisk (NVO) shares are falling in premarket trading after the maker of the Ozempic and Wegovy weight-loss drugs posted a second-quarter miss and cut its operating income outlook amid supply constraints; CVS Health (CVS) shares are edging lower after a Q2 revenue miss and another full-year profit guidance cut; global markets are rallying after the Bank of Japan calmed investor fears about the fading allure of the carry trade and said it wouldn’t raise interest rates while capital markets were “extremely volatile”; and Super Micro Computer (SMCI) shares are tanking after the server company, which also announced a 10-for-1 stock split, posted results that missed analysts’ estimates. U.S. stock futures are rising after major indexes staged a broad-based recovery Tuesday, a day after recording their biggest declines in nearly two years. Here’s what investors need to know today.
1. Disney Reports Q3 Revenue, Profit Beat
The Walt Disney Co. (DIS) posted third-quarter results that beat Wall Street estimates, boosted by box office hits like “Inside Out 2,” as its streaming business turned to a profit for the first time. For the three months through June, the entertainment giant, which is raising streaming prices of Disney+, Hulu, and ESPN+ starting in October, reported revenue of $23.2 billion and diluted earnings per share of $1.43, both beating consensus forecasts of analysts polled by Visible Alpha. “This was a strong quarter for Disney, driven by excellent results in our Entertainment segment both at the box office and in [Directed-to-Consumer], as we achieved profitability across our combined streaming businesses for the first time and a quarter ahead of our previous guidance,” Chief Executive Officer (CEO) Bob Iger said. Disney shares are little changed in premarket trading.
2. Novo Nordisk Drops on Q2 Miss, Outlook Cut
Novo Nordisk (NVO) shares are falling 3% in premarket trading after the maker of the Ozempic and Wegovy weight-loss drugs reported lower-than-forecast second-quarter revenue and cut its 2024 operating income guidance amid “periodic supply constraints and related drug shortage notifications across geographies.” The Danish pharmaceutical firm reported a 25% year-over-year revenue gain to 68.06 billion Danish kroner ($9.96 billion), missing estimates of DKK68.47 billion. Novo Nordisk cut its operating profit outlook for the full year, projecting 20% to 28% growth at constant exchange rates from its prior forecast of 22% to 30%, even as it lifted its 2024 revenue range to between 22% and 28% from a previous range of 19% to 27%.
3. CVS Cuts Full-Year Profit Outlook Again; Aetna President Out
CVS Health (CVS) shares are edging lower in premarket trading after the pharmacy giant slashed its 2024 earnings guidance again amid increased medical costs and announced the departure of the head of its Aetna unit. CVS reported revenue for the second quarter of $91.23 billion, below forecasts, but higher-than-expected earnings per share (EPS) of $1.41. It also lowered its 2024 EPS guidance for a third straight quarter, to a range of $4.95 to $5.20 from at least $5.64. The company also said that “based on the current performance and outlook for the Health Care Benefits segment,” Aetna President Brian Kane is leaving, and CVS CEO Karen Lynch will take over management of the business and oversee it with Chief Financial Officer (CFO) Tom Cowhey.
4. Global Stocks Rally as Bank of Japan Says Won’t Raise Rates Amid Volatility
Japan’s Nikkei closed higher Wednesday, Europe’s Stoxx 600 benchmark is gaining, and U.S. stock futures are rising after the Bank of Japan calmed investor fears of the unwinding of the carry trade and said it wouldn’t raise interest rates while capital markets were “extremely volatile.” Fears of the reversal of the carry trade have been cited as one factor fueling Monday’s global stocks rout, apart from worries of a U.S. recession and AI overspending by tech giants.
5. Super Micro Computer Slumps on Earnings Miss, Surprise Margin Drop
Super Micro Computer (SMCI) shares are sinking 14% in premarket trading after the server company reported quarterly earnings that fell short of analysts’ expectations, issued a light profit forecast, and disclosed a surprise drop in adjusted gross margin, as the cost of transitioning to more expensive artificial intelligence (AI) chips weighed on the bottom line. The company also announced a 10-for-1 stock split that takes effect Oct. 1.
