Yahoo Finance Trending tickers: Tesla, ABF, Novartis, Taylor Wimpey, JD Sports
The latest investor updates on stocks that are trending on Tuesday
Tesla (TSLA)
Tesla is set to report earnings for its first quarter after the bell on Tuesday, delivering an update on its current and future prospects as investor sentiment slides. It comes amid slowing global demand for EVs and pressure on prices from Chinese rivals.
The electric carmaker's share price is down a more than 40% year-to-date after disappointing Q4 results issued weak and non-specific delivery guidance for the year and missed on deliveries by about 13%.
The company is expected to report adjusted earnings per share of $0.52 on top-line revenue of $22.31bn, per Bloomberg consensus estimates. This would be its first revenue decline in four years.
It is also expected to post $1.49bn in operating profit, a 40% slide from a year ago. In terms of non-GAAP metrics, Wall Street is expecting $1.79bn in adjusted net income, and EBITDA of $3.32bn.
Investors will also be watching for Tesla’s future product roadmap.
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It comes as Tesla attempted to boost demand for its EVs on Friday by cutting the prices of three of its five models in the US. It then went on to cut prices around the world during the weekend, including in China, the Middle East, Africa and Europe.
It cut the US prices of the Model Y, Tesla’s most popular model and the top-selling EV, and also of the older and more expensive Models X and S.
Those cuts reduced the starting price for a Model Y to $42,990 (£34,874), and to $72,990 for a Model S and $77,990 for a Model X. It also slashed the US price of its Full Self-Driving driver assistance software from $12,000 to $8,000.
ABF (ABF.L)
Primark owner Associated British Foods (ABF) surged to top of FTSE 100 (^FTSE) after reporting a 39% jump in earnings in the first half of its financial year as it opened new stores and raised prices.
Profit before tax also climbed 37% to £881m in the six months to March, compared with the same period last year. The group is now forecasting “significant growth” in full-year profit.
Sales at Primark was boosted by higher prices rather than the volume of sales, meaning people paid more money for fewer items.
Primark's first half revenue rose 7.5% to £4.5bn, with like-for-like sales up 2.1%. It logged an operating profit margin of 11.3%, up from 8.3%, partly driven by improvements in the costs of the products it buys.
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The group added that Primark would roll out its click and collect service more broadly in the UK after a successful trial. Unlike most of its rivals, it currently does not offer home delivery.
George Weston, AB Foods’ chief executive, said it was a “very strong set of financial results” as the group benefits from the “restoration of some normality in our markets and in our supply chains”.
Shares were almost 10% higher on the back of the news.
Novartis (NOVN.SW)
Swiss drugmaker Novartis climbed as much as 5% on Tuesday after it raised its full-year guidance following better-than-expected first-quarter results.
The company said 2024 net sales were set to grow by a high-single to low double-digit percentage, whilst adjusted operating income was now forecast to grow by a low double-digit to mid-teens percentage.
Net sales rose 11% in the first three months of the year, while core operating income increased 22% over the same period.
“Our performance was broad-based, across all key growth brands and geographies, allowing us to raise guidance for the full year 2024,” boss Vas Narasimhan said in a statement.
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"The momentum in our business and pipeline gives us continued confidence in our mid- and long-term growth outlook."
A newly approved use of Cosentyx to treat hidradenitis suppurativa, a painful and scarring acne-like skin condition, has seen swift uptake, and a new intravenous infusion option, an alternative to more frequent shots under the skin, also boosted demand, finance chief Harry Kirsch said.
"The new launch in the US and Europe was much better than expected," he said on a media call.
Taylor Wimpey (TW.L)
Shares in Taylor Wimpey rose as much as 1% in London as the UK housebuilder reiterated its guidance for 2024 thanks to a rise in its sales rate during the key spring selling season.
The company also reaffirmed its home-build targets of around 9,500 to 10,000 homes in Britain this year, excluding joint ventures. The midpoint of that range is about 7% lower than last year's 10,438 units.
Net private sales rate, as of 21 April, came in at 0.73 units per outlet, better than the 0.67 homes logged in from the start of the year till 25 February.
"While we are mindful of ongoing market uncertainty and affordability challenges, it is pleasing to see continued market stability supported by good mortgage availability and sustained customer confidence," Jennie Daly, chief executive, said in the trading statement.
Oli Creasey, property research analyst at Quilter Cheviot, said: "While this is encouraging, we do not know what assumptions are being made about house prices and mortgage rates to support that growth.
“We expect little change to share price or expectations given these in-line results.”
JD Sports (JD.L)
JD Sports has agreed to buy US rival Hibbett for around $1.1bn (£899m) in a bid to push ahead with its expansion in the US.
The deal, which will be funded using $300m of cash and a $1bn extension to its existing bank facilities, works out at $87.50 per share for Hibbett, compared with a $72.49 closing price on Monday. This represents a 20% premium.
Régis Schultz, JD Sports chief executive, said the move will speed up its US growth plans. He said: “Hibbett’s footprint is highly complementary, adding a stronger presence in communities across the southeastern US, where we currently have a limited presence.”
It comes as Britain's biggest sportswear retailer has come under pressure globally after weak outlooks from sports apparel makers such as Nike (NKE) and Puma (PUM.DE).
Hibbett, which also runs the City Gear sporting goods chain, has 1,169 stores across the US. The enlarged group would have combined revenues of about £4.7bn in North America, JD Sports said, adding that the region's contribution to total sales would increase to about 40% from the current 32%.
JD Sports shares rose 7% in London after the news.
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