All the latest news from Investing Port https://www.investingport.com Humana Reports Strong Q1 2025 Earnings, Reaffirms Full-Year Guidance Humana Inc. (HUM) delivered a solid first-quarter 2025 performance, beating Wall Street expectations on earnings despite a slight revenue miss. The company’s adjusted earnings per share (EPS) came in at $11.58, significantly higher than analyst forecasts of $10.09. Revenue for the quarter totaled $32.11 billion, just shy of the $32.15 billion consensus estimate. The results sparked investor confidence, sending Humana stock up 5% in premarket trading on the day of the report. Key Financial Highlights – Q1 2025 Adjusted EPS: $11.58 (vs. $10.09 expected) Revenue: $32.11 billion (slightly below $32.15 billion expected) Medical Loss Ratio (MLR): Expected between 90.1% and 90.5% for full year Full-year guidance reaffirmed Medicare Advantage Outlook & Operational Commentary Humana, a major player in the Medicare Advantage market, stated that its medical loss ratio remains aligned with internal forecasts. Although the projected MLR is above the Affordable Care Act’s 85% minimum threshold, the company emphasized its confidence in pricing strategies and cost control measures. CEO Jim Rechtin reassured investors during the earnings call, saying: “While there are challenges to navigate, there are no surprises. We're managing well the factors within our control.” This comes at a time when investors are closely monitoring Medicare Advantage providers following UnitedHealth Group's earnings miss earlier this month, which was tied to unexpected increases in Medicare-related costs. That news initially pulled down Humana stock by over 12%, though the latest earnings have helped restore some market confidence. Star Ratings and Legal Challenge Despite the earnings beat, Humana continues to face headwinds. The company lost more Medicare Advantage star ratings than any of its peers this year, which could reduce future Medicare reimbursement rates and lead to membership declines. In response, Humana is actively pursuing legal action over the rating methodology.]]> Wed, 30 Apr 2025 09:03:09 EST https://www.investingport.com/humana-reports-strong-q1-2025-earnings-reaffirms-full-year-guidance/ https://www.investingport.com/humana-reports-strong-q1-2025-earnings-reaffirms-full-year-guidance/ Super Micro Computer Inc. (SMCI) saw its stock plunge by 15% in after-hours trading on Tuesday, following a significant earnings warning for its fiscal third quarter. The company cited "delayed customer platform decisions" as the primary reason behind the revenue and earnings shortfall, with Nvidia's new Blackwell platform likely contributing to the problem.Reasons Behind the Earnings ShortfallThe San Jose-based server maker warned that its March-quarter results would fall well below expectations, now forecasting $4.5 billion to $4.6 billion in revenue, down from its previous forecast of $5.0 billion to $6.0 billion. Additionally, Super Micro expects adjusted earnings per share (EPS) of 29 to 31 cents, much lower than its earlier target of 42 to 62 cents.Wall Street analysts, according to FactSet, had been expecting $5.4 billion in revenue and 53 cents per share in adjusted earnings for the quarter.Nvidia's Blackwell Platform May Be a Key FactorSuper Micro’s disappointing forecast could be tied to the transition of customer platforms to Nvidia's Blackwell product family, which was introduced earlier this year. Nvidia has already sold out its initial inventory of the Blackwell chips, which are designed for AI computing. As Super Micro adapts to this shift, it may have had to take a write-down on older-generation Nvidia GPUs, contributing to higher inventory reserves and reducing profitability.Stock Performance and Future OutlookDespite the recent decline, Super Micro's stock has seen a year-to-date increase of about 18%, partly due to positive momentum in February when the stock hit $97.67. This gain was driven by the company’s efforts to get back in compliance with Nasdaq after filing its delayed financial reports. However, the after-hours decline has left the stock nearly 70% below its February peak.Super Micro is scheduled to report its official fiscal third-quarter earnings on Tuesday, May 6, after the market closes. Analysts and investors are awaiting more detailed information about the company’s transition to new platforms and the impact on its financials.Both Super Micro and Nvidia have not yet responded to requests for comment regarding the matter. Wed, 30 Apr 2025 04:16:57 EST https://www.investingport.com/super-micros-stock-plummets-after-earnings-warning-nvidias-transition-likely-to-blame/ https://www.investingport.com/super-micros-stock-plummets-after-earnings-warning-nvidias-transition-likely-to-blame/ U.S. equities closed higher for the sixth straight session on Tuesday as investors welcomed upbeat earnings reports and encouraging developments on trade policy.Dow Jones Industrial Average rose 0.8% to 40,527.6S&P 500 climbed 0.6% to 5,560.8Nasdaq Composite added 0.6% to 17,461.3All sectors advanced except energy, with financials and materials leading the charge.? Top Market Movers: WinnersHoneywell International (HON) surged 5.4%, making it the top gainer on the Dow and one of the biggest on the S&P 500. Despite global demand uncertainties, the company posted strong Q1 earnings and adjusted its full-year outlook.Sherwin-Williams (SHW) climbed 4.8%, ranking as the second-best Dow performer, after reaffirming its full-year adjusted earnings forecast and delivering a quarterly bottom-line beat.Pfizer (PFE) rose 3.2% after reporting a surprise year-over-year earnings increase in Q1 and maintaining its full-year guidance.Zebra Technologies (ZBRA), which makes barcode scanners and other devices designed to help businesses track their inventory, beat top- and bottom-line forecasts with its first-quarter result. Shares of Zebra Technologies were up 5.2% on Tuesday. ? Top Market Movers: DeclinersNXP Semiconductors (NXPI) tumbled 6.9%, marking the biggest drop on the S&P 500. Despite better-than-expected earnings, the Dutch chipmaker cited a "very uncertain" environment due to tariffs. The selloff followed the CEO’s retirement announcement.Spotify Technology (SPOT) fell 3.5% after issuing weak Q2 revenue guidance and missing expectations on both the top and bottom lines in Q1.?️ Policy & Macro HighlightsTariff Relief for Autos: President Trump signed an executive order exempting automobiles from certain tariffs, including those on aluminum, steel, Canada, and Mexico, according to Bloomberg and The Wall Street Journal. This added optimism to markets, especially for manufacturers and industrials.Bond Market: U.S. Treasury yields eased amid cautious optimism:10-year yield fell 4.5 basis points to 4.17%2-year yield slipped 2.7 basis points to 3.66%Housing Data: Home price growth in the U.S. slowed in February, both monthly and annually, reflecting softer demand. However, tight housing supply continues to support prices, per S&P Dow Jones Indices.? Commodities WatchOil: WTI crude dropped 2.9% to $60.25/barrel as tariff concerns clouded the global demand outlook, according to D.A. Davidson.Metals:Gold dipped 0.5% to $3,332.20/ozSilver rose 0.6% to $33.22/oz? SummaryWith earnings season in full swing and a dose of tariff relief, U.S. equities maintained upward momentum for a sixth consecutive session. Strong corporate results from names like Honeywell, Pfizer, and Sherwin-Williams energized the market, while weakness in semiconductors and tech signaled caution ahead. Investors will continue monitoring earnings updates and trade developments for cues on the next leg of the rally. Wed, 30 Apr 2025 04:14:55 EST https://www.investingport.com/dow-and-sp-500-notch-sixth-consecutive-gain-amid-strong-earnings-and-tariff-relief/ https://www.investingport.com/dow-and-sp-500-notch-sixth-consecutive-gain-amid-strong-earnings-and-tariff-relief/ Will Pfizer Stock Rebound After a Mixed Q1 2025? Pfizer (PFE) reported mixed first-quarter 2025 earnings, with revenue falling short of expectations while earnings surpassed analyst estimates. The company posted $13.7 billion in revenue, missing the $14.1 billion consensus estimate, but delivered adjusted earnings per share (EPS) of $0.92, significantly outperforming expectations of $0.68. Pfizer also reaffirmed its full-year guidance, signaling confidence in its outlook. Stock Performance & Market Sentiment Since the beginning of 2025, Pfizer stock has underperformed the broader market, declining 13%, while the S&P 500 has fallen by 6%. Investor sentiment has been negatively impacted by recent setbacks, including: The halt of its experimental sickle cell disease treatment The discontinuation of two obesity drugs, including danuglipron, due to safety concerns For investors looking for stability, diversified investment portfolios such as the High-Quality portfolio—which has outperformed the S&P 500 with over 91% returns since inception—may offer alternative opportunities. Q1 2025 Financial Highlights Revenue: $13.7 billion (-8% YoY) Vyndaqel sales: $1.5 billion (+33% YoY) Paxlovid sales: $491 million (-75% YoY) Comirnaty (COVID-19 vaccine) sales: $565 million (up from $354 million in Q1 2024) Adjusted net income margin: 38.2%, up from 31.4% in the previous year Adjusted EPS: $0.92, a 12% YoY increase, despite a revenue decline Outlook: Can Pfizer Stock Rebound? Despite the revenue decline, Pfizer’s profitability improved, driven by cost efficiencies and strong sales of Vyndaqel and Comirnaty. However, continued pressure from declining Paxlovid sales and setbacks in its drug pipeline remain concerns. The stock's ability to rebound will likely depend on: Pipeline developments and new drug approvals Cost management initiatives to sustain profitability Long-term growth strategies in key therapeutic areas While Pfizer remains a global pharmaceutical leader, investors will be watching upcoming earnings reports and strategic moves closely to assess whether PFE stock can recover in 2025.]]> Tue, 29 Apr 2025 12:41:25 EST https://www.investingport.com/will-pfizer-stock-rebound-after-a-mixed-q1-2025/ https://www.investingport.com/will-pfizer-stock-rebound-after-a-mixed-q1-2025/ ? Spotify Q1 2025 Earnings Miss Expectations Despite Year-Over-Year Growth Spotify (SPOT) reported its Q1 2025 earnings, falling short of market expectations. The company posted adjusted earnings of $1.13 per share, significantly below the Zacks Consensus Estimate of $2.29, resulting in a negative earnings surprise of -50.66%. Although earnings were up slightly from $1.05 per share in Q1 2024, the result marked a considerable miss. Quarterly Revenue Also Falls Short Spotify generated $4.41 billion in revenue during the quarter, below the consensus estimate by 4.08%. This still represented a solid increase from the $3.95 billion posted in the same quarter last year. This marks the third time in four quarters that Spotify has missed consensus earnings estimates, with only one beat in that time. On the revenue side, the company has exceeded expectations twice over the past four quarters. Stock Performance Despite the Q1 miss, Spotify shares are up 33.6% year-to-date, outperforming the broader S&P 500, which has declined by about 6% in the same period. This indicates strong investor sentiment, possibly due to long-term growth potential in streaming and podcasting. Looking Ahead The key question for investors is how Spotify plans to improve earnings consistency moving forward. Future performance may depend heavily on management’s forward guidance and commentary during the earnings call. Changes in analysts' estimates and future earnings projections—closely tracked by rating systems like the Zacks Rank—could offer clues about the stock's next move Tue, 29 Apr 2025 11:57:03 EST https://www.investingport.com/spotify-q1-2025-earnings-miss-expectations-despite-year-over-year-growth/ https://www.investingport.com/spotify-q1-2025-earnings-miss-expectations-despite-year-over-year-growth/ Coca-Cola Q1 2025 Earnings: Organic Revenue Up 6%, Operating Margin Expands Coca-Cola delivered a strong first quarter in 2025, demonstrating solid performance in its core business despite external headwinds like currency fluctuations. While reported revenue fell 2% to $11.1 billion, the company achieved 6% organic revenue growth, driven by 5% pricing and mix gains and 1% growth in concentrate volume. Key Highlights: Earnings per share (EPS) increased by 5% to $0.77 Operating income surged 71%, with operating margin expanding to 32.9% from 18.9% in Q1 2024 Global unit case volume rose 2% Coca-Cola Zero Sugar posted 14% growth across all regions Free cash flow was negative $5.5 billion, primarily due to a one-time $6.1 billion payment for the fairlife acquisition Adjusted free cash flow excluding the payment stood at $558 million Regional Insights: Coca-Cola saw strong growth in emerging markets, particularly India, China, and Brazil. Notable successes included: Record-breaking campaign at India’s Maha Kumbh Mela festival Effective Lunar New Year marketing in China Conversely, North America volume declined by 3%, but the company’s geographically diverse footprint helped offset regional weaknesses. Outlook for 2025: Coca-Cola maintained its full-year guidance, projecting organic revenue growth of 5–6%. However, the company now expects a 2–3% currency headwind on comparable net revenues. Despite this, management remains confident in the company’s growth trajectory, pointing to its strong brand, global reach, and resilient business model.]]> Tue, 29 Apr 2025 08:21:35 EST https://www.investingport.com/coca-cola-q1-2025-earnings-organic-revenue-up-6-operating-margin-expands/ https://www.investingport.com/coca-cola-q1-2025-earnings-organic-revenue-up-6-operating-margin-expands/ Wall Street Banks Finalize Sale of Elon Musk’s X Acquisition Debt A consortium of major banks, including Morgan Stanley, Bank of America, Barclays, and Mitsubishi UFJ, has completed the sale of the final portion of the debt linked to Elon Musk’s $44 billion acquisition of the social media platform formerly known as Twitter, now rebranded as X, according to a source familiar with the transaction. The final tranche involved $1.2 billion in loans, sold at 98 cents on the dollar with a 9.5% yield, the source revealed. This marks the last piece of the $13 billion debt package that banks have held since Musk's high-profile buyout in 2022. Musk’s improving relationship with former U.S. President Donald Trump and the revenue outlook for X played a significant role in helping banks offload nearly all of the debt that had remained on their books for almost two years. The financing for the acquisition originally included a mix of loans: a $6.5 billion secured term loan, a $500 million revolving credit facility, $3 billion in unsecured debt, and $3 billion in secured loans. In total, seven lenders participated in the deal led by Morgan Stanley. Earlier this month, it was reported that Morgan Stanley had offered the remaining $1.23 billion of the debt as a fixed-rate loan priced between 97.5 and 98 cents on the dollar, also yielding 9.5%. While Morgan Stanley, Barclays, Mitsubishi UFJ, and X did not respond to requests for comment, Bank of America declined to provide a statement. This update follows a report from The Wall Street Journal and comes shortly after Musk announced that his AI company, xAI, had acquired X in a deal valuing the platform at $33 billion.]]> Tue, 29 Apr 2025 05:36:31 EST https://www.investingport.com/wall-street-banks-finalize-sale-of-elon-musks-x-acquisition-debt/ https://www.investingport.com/wall-street-banks-finalize-sale-of-elon-musks-x-acquisition-debt/ U.S. Markets Mixed as Investors Brace for Big Earnings, Economic Data – April 28, 2025Index PerformanceDow Jones Industrial Average: +0.3% → 40,227.6 (5-day winning streak)S&P 500: +0.1% → 5,528.8 (5-day winning streak)Nasdaq Composite: -0.1% → 17,366.1Sector OverviewTop Gaining Sectors:Utilities: +0.7%Real Estate: Modest gainsBiggest Losing Sector:Technology: -0.3%Top Gainers – S&P 500AbbVie (ABBV): +3.4%Q1 earnings and sales beat expectations.Strong performance from Skyrizi (skin treatment) and Rinvoq (rheumatoid arthritis).Raised full-year profit guidance.Warned of potential tariff risks.Top Losers – S&P 500Erie Indemnity (ERIE): -4.0%Largest drop in the S&P 500.Revenue beat forecasts, but EPS missed.Rising costs in IT, staffing, and service impacted margins.Nvidia (NVDA): -2.1%Biggest decliner on the Dow.Pressure from reports that Huawei is testing a new AI chip aimed at replacing some Nvidia products.Colgate-Palmolive (CL): -3.1%Q1 sales and profit beat forecasts.Cut full-year outlook due to tariffs and global economic uncertainty.Earnings Season OutlookMajor reports expected this week from:Apple, Microsoft, Meta, AmazonMcDonald’s, Visa, Coca-Cola, PfizerS&P 500 companies have so far beaten expectations, with Q1 earnings up ~18% YoY.Analysts initially projected only 6.8% YoY earnings growth (Bloomberg).Commodities & Bonds10-Year Treasury Yield: ↓ 6 bps → 4.25%2-Year Treasury Yield: ↓ 7.5 bps → 3.69%WTI Crude Oil: ↓ 1.8% → $61.88/barrelGold: ↑ 1.9% → $3,361.10/ozSilver: ↑ 0.2% → $33.09/ozGlobal Trade UpdateNo active U.S.–China trade talks, according to China’s Monday statement.U.S. maintains a firm stance, citing China’s need to de-escalate tensions.President Trump earlier announced new tariffs, with a 90-day pause for non-retaliating countries. Tue, 29 Apr 2025 03:05:48 EST https://www.investingport.com/us-markets-mixed-as-investors-brace-for-big-earnings-economic-data-april-28-2025/ https://www.investingport.com/us-markets-mixed-as-investors-brace-for-big-earnings-economic-data-april-28-2025/ Nvidia Stock Slides as Huawei Prepares New AI Chip Following U.S. Export Restrictions Nvidia (NVDA) shares fell by as much as 2% in early trading on Monday after reports surfaced that China's Huawei is preparing to launch an advanced AI chip. This development comes in the wake of U.S. export restrictions, introduced under former President Trump's administration, that targeted Nvidia’s sales to China. According to The Wall Street Journal, Huawei has begun discussions with Chinese tech companies to test its new Ascend 910D chip, which aims to outperform Nvidia’s H100 AI chips. The 910D model follows the previous 910B and 910C versions and is currently still under development. In addition, the Journal reported that Huawei is gearing up to deliver over 800,000 units of its Ascend 910B and 910C chips to clients, including state-backed telecom firms and AI-focused companies like ByteDance, the parent company of TikTok. Nvidia’s stock has been under pressure recently after the company revealed in a regulatory filing that U.S. authorities had effectively halted the export of its H20 chips—products tailored for the Chinese market—to comply with tightening trade restrictions. Nvidia expects the move to result in a $5.5 billion loss, with JPMorgan analysts projecting the ban could cost the company up to $16 billion in revenue this year. China remains a significant market for Nvidia, accounting for about $17 billion, or 13%, of its fiscal year 2025 revenue, according to Bernstein. DA Davidson’s Gil Luria suggests the figure might be even higher, potentially reaching 40%, factoring in estimates related to unofficial chip sales. Further pressure on Nvidia's stock came last week after Reuters reported that Huawei’s 910C chips—seen as competitive with Nvidia’s H100—could start shipping as early as May. The H100 chips, originally banned from China in 2022, are two generations older than Nvidia’s newest Blackwell series. So far in 2025, Nvidia’s shares have dropped more than 17% amid growing investor concerns over AI spending trends among major tech companies and the escalating U.S.-China trade tensions. Adding to the challenges, the U.S. government recently initiated a probe into Nvidia’s AI chip usage in China. At the same time, CEO Jensen Huang has been working on strengthening relationships by visiting Chinese officials and investing heavily in domestic expansion. Nvidia has pledged $500 billion toward boosting the U.S. AI supply chain.]]> Mon, 28 Apr 2025 11:56:39 EST https://www.investingport.com/nvidia-stock-slides-as-huawei-prepares-new-ai-chip-following-us-export-restrictions/ https://www.investingport.com/nvidia-stock-slides-as-huawei-prepares-new-ai-chip-following-us-export-restrictions/ Daily Pre-Market Update: Key Highlights for Today​U.S. stock futures are showing minimal movement as the markets head into a new week riding a four-session winning streak. Investors are bracing for a packed earnings schedule, featuring updates from major tech players like Apple (AAPL), Amazon (AMZN), Microsoft (MSFT), and Meta Platforms (META). Meanwhile, Domino’s Pizza (DPZ) shares are under pressure following disappointing U.S. same-store sales results. In M&A news, Germany's Merck KGaA has agreed to acquire U.S.-based SpringWorks Therapeutics (SWTX) for nearly $4 billion. Over in London, Deliveroo shares are soaring after a buyout proposal from DoorDash (DASH).Here’s a breakdown of the top developments:1. U.S. Stock Futures Hold Steady Ahead of Busy Earnings Week​Futures tied to major U.S. indexes are trading slightly lower as investors prepare for a busy week filled with earnings reports and economic updates. Nasdaq futures are down 0.1% after the index surged 6.7% last week. Futures for the S&P 500 and Dow Jones Industrial Average are also marginally lower. Bitcoin (BTCUSD) continues its rally, now trading above $95,000. Yields on the 10-year Treasury note are ticking up slightly, while oil prices dip and gold remains stable.2. Big Tech Earnings: Apple, Amazon, Microsoft, and Meta in Focus​This week will see earnings from more than half of the "Magnificent Seven" tech giants. Apple (AAPL) and Amazon (AMZN) will report on Thursday, with investors closely watching how new U.S.-China tariffs could impact their operations. Microsoft (MSFT) and Meta Platforms (META) are scheduled to release results on Wednesday. Meta’s report comes as it faces an antitrust case from the Federal Trade Commission.3. Domino’s Pizza Shares Dip Following Earnings Miss​Domino’s Pizza (DPZ) is trading down approximately 2.5% in premarket action after reporting first-quarter revenue and U.S. same-store sales below analyst expectations. Revenue came in at $1.11 billion, slightly below consensus estimates, although earnings per share at $4.33 exceeded forecasts. U.S. same-store sales declined 0.5% year-over-year, disappointing analysts who had anticipated a small gain.4. Merck KGaA to Acquire SpringWorks Therapeutics for $3.9 Billion​SpringWorks Therapeutics (SWTX) shares are climbing over 3% after German pharmaceutical company Merck KGaA announced a $3.9 billion cash deal to acquire the biotech firm. Merck is offering $47 per share, a 26% premium compared to SpringWorks' 20-day average price prior to deal speculation. The transaction is expected to close in the second half of 2025.5. Deliveroo Stock Jumps After DoorDash Proposal​Shares of British food delivery company Deliveroo are surging 17% in London after DoorDash (DASH) made a preliminary offer of 180 pence ($2.40) per share. Deliveroo’s board indicated it would be inclined to recommend the offer if a formal bid is made. Meanwhile, DoorDash shares remain mostly unchanged in U.S. premarket trading. Mon, 28 Apr 2025 09:44:36 EST https://www.investingport.com/daily-pre-market-update-key-highlights-for-today/ https://www.investingport.com/daily-pre-market-update-key-highlights-for-today/