Sintrones Technology to see surging shipments in 1H23

Futures Rebound After Yellen Torches Markets After 76 year old treasury secretary Janet Yellen blew up the market yesterday with her post-FOMC comments that regulators aren’t looking to provide “blanket” deposit insurance to stabilize the US banking system, stock futures have rebounded modestly on Thursday, while paring some earlier gains. S&P 500 futures were up 0.5% at 3990 at 7:45 a.m. ET while Nasdaq 100 futures rose 0.9%. Both underlying indexes fell the most in two weeks yesterday. The tech-heavy Nasdaq index flirted with a bull market yesterday after briefly rising 20% from its December low. US government bond yields have edged up after falling sharply on Wednesday when the Fed raised rates 25bps but also opened the door to a pause, while WTI crude futures are down 0.6% in early US session. The Stoxx Europe 600 Index slid 0.8%, falling for the first time this week before a rates decision from the Bank of England. In premarket trading, banking stocks were again the biggest laggards, following weakness in their US peers and as Citigroup Inc. slashed its outlook for the sector. Coinbase slumped after the largest US crypto exchange said it received a notice from the SEC formally declaring the securities regulator’s plans to bring an enforcement action against it. Analysts say the notice might be a precursor to the agency ultimately suing the company. Here are some other notable premarket movers: First Republic Bank shares rose on Thursday along with banking peers, set for a tentative rebound from yesterday’s losses following disappointment over comments from Treasury Secretary Janet Yellen over bank deposits. Cryptocurrency-exposed stocks rise as Bitcoin rebounds after snapping a six-session gaining streak on Wednesday. US equity futures also climbed, signaling a recovery following a tumultuous day of losses on Wall Street. Marathon Digital (MARA US) +5.1%, Riot Platforms (RIOT US) +4.7%. Chewy falls as much as 6.6% in US premarket trade after the online pet supplies retailer issued softer-than-expected FY23 guidance, with plans for international expansion likely to pressure margins. The company’s 4Q results also showed declining customer numbers, which Barclays says raises questions given that headwinds should have been abating. Phreesia Inc. shares dropped 3.3% in postmarket trading, after the application software company reported fourth-quarter results that beat expectations but gave a revenue outlook that KeyBanc sees as light. Caution reigned in markets on Thursday following the Fed’s decision to proceed with a quarter-point rate hike, combined with Treasury Secretary Janet Yellen’s remarks on the health of the banking sector. While Fed Chair Jerome Powell assured that regulators’ actions demonstrated “all depositors’ savings are safe” as he raised rates by an expected quarter point,  Yellen effectively contradicted him and sent stocks whipsawing, when she said regulators aren’t looking to provide “blanket” deposit insurance. “Yellen’s comments were clearly the more important factor yesterday,” said Manish Kabra, US equity strategist at Société Générale. “Not securing all deposits risks more deposit runs, which means large banks’ outperformance versus regional banks is likely to continue. Overall, the US banks rally will continue to fade, at least until the yield curve is firmly positive.” “It is well possible that the post-FOMC equity selloff quickly reverses, as falling yields are supportive of equity valuations — if financial stress is contained and economic data is not too bad,” said Ipek Ozkardeskaya, senior analyst at Swissquote Bank.   UBS strategists led by Mark Haefele believe that any rally would be unlikely to endure just yet however, noting that turning points usually rely on investors anticipating interest-rate cuts alongside a trough in economic activity and corporate earnings. “The Fed’s actions and analysis of the economy suggest these conditions are not yet fully in place,” they said in a note. Separately, Goldman Sachs Group Inc. strategists say they expect US households to be net sellers of $750 billion worth of stocks in 2023 amid rising bond yields and declining personal savings. The team led by Cormac Conners says higher 10-year yields and lower savings rates tend to be associated with decreased net equity demand from households. As a result of the ongoing bank crisis, the swap market shows investors are split on the chances that Fed officials will add another 25 basis points to their benchmark in May. Despite Powell’s guidance, expectations for cuts have deepened, with the market suggesting that the effective fed funds rate will drop to around 4.1% in December.  “I would not expect the market to take these rate cuts out in the near term and could very well price in more cuts if the data deteriorates from here,” Matthew Hornbach, global head of macro strategy at Morgan Stanley, told Bloomberg Television. Powell himself, though, said in response to questioning that officials “just don’t” see cuts this year and that they will raise higher than expected if that is needed. “Rate cuts are not in our base case,” he said. He also didn't see the bank crisis as recently as three weeks ago when he swore to Congress he would hike rates 50bps only to trigger the worst banking crisis since Lehman. European stocks are on course to snap a three-day winning streak as banks underperform after US Treasury Secretary Janet Yellen warned they aren’t considering widespread insurance for bank deposits. The Stoxx 600 is down 1.0% while the Stoxx 600 Banks Index falls 2.5%.  Here are some of the biggest European movers: HSBC shares drop as much as 3.3%, ING slides as much as 2.5% and ABN Amro tumbles as much as 3.7% after US peers fell on remarks that US lawmakers aren’t planning on widespread insurance for bank deposits Jeronimo Martins falls as much as 4.1%, curbing the stock’s rally since the start of the month, after 4Q earnings showed a further drop in the Portuguese retailer’s margins Rallye SA slumps as much as 10% after the company said the latest earnings from its French supermarket business make it difficult to finish debt restructuring Gym Group drops as much as 5.1% after Barclays downgrades the fitness operator to equal-weight from overweight, citing a “bleak” profit outlook Sanofi gains as much as 5.3%, the most since December, after releasing positive data from a phase 3 trial for its key drug Dupixent Scout24 climbs as much as 4.4%, reaching highest since mid-November, after the online classified advertising company announced a buyback Inwit rises as much as 4.8% to a record after Reuters reported that private equity firm Ardian is in the early stage of exploring a bid for the Italian tower operator Domino’s Pizza Group jumps as much as 4.3% after Barclays upgrades the pizza delivery chain to overweight from equal-weight, highlighting the increase in app usage Meyer Burger gains as much as 15% after the Swiss solar equipment manufacturer’s Ebitda and profitability beat expectations Nemetschek shares rise as much as 13% to their highest level since September. The German firm’s outlook for 2024 and 2025 was seen as solid The BOE is likely to continue the quickest series of interest-rate increases in three decades, with its focus on combating inflation outweighing calls for a pause given recent turmoil in the banking system. The Swiss and Norwegian central banks both raised rates Thursday, as forecast, and flagged more hikes to come in their campaigns to tame rising consumer prices. For the BOE, February UK CPI data have “removed any flexibility they may have thought they had and now markets are pricing in a higher terminal rate of around 4.5% as a result,” said Craig Erlam, a senior market analyst at Oanda Ltd. “This makes the language that accompanies the decision key,” he said, expecting policymakers to highlight an uncertain outlook and the need to be data-dependent. Earlier in the session, Asian stocks rose as the region’s currencies strengthened against the dollar despite the Federal Reserve’s decision to raise US interest rates on Wednesday.  The MSCI Asia Pacific Index climbed as much as 1.5%, rising for a third day, as most Asian currencies, including South Korea’s won and Thailand’s baht, gained. Hong Kong’s equity benchmarks were among the top performers, boosted by gains in Tencent after the firm reported better-than-expected revenue. Stock gauges in Japan and India underperformed. “Dollar reaction to the Fed hike looks to be muted, which can ease pressure on Asian currencies and fund flows,” said Marvin Chen, an analyst at Bloomberg Intelligence. “Focus should be on the dollar impact as peak Fed rates near.” The dollar slid as market expectations for rate cuts by the Fed deepened despite the central bank hiking its benchmark rate by a quarter-point and signaling that it expects more tightening after that. A weaker greenback tends to be beneficial for Asian shares if it signals higher risk appetite and is seen as a positive for growth in the region’s emerging economies, many of which rely on imports priced in dollars. An index of Asian financial stocks headed for a three-day gain as a key technical indicator suggested the sector’s loss of more than 3% this month may have been excessive. US shares slumped Wednesday after comments from Treasury Secretary Janet Yellen rattled US bank shares and Fed Chairman Jerome Powell dashed hopes on rate cuts this year. Given expected slower US growth and the stresses in its banking system, it makes more sense to lean into the stronger growth recovery in China as well as Hong Kong and Thailand, said Sunil Koul, Asia Pacific equity strategist at Goldman Sachs, in a Bloomberg TV interview Japanese equities fell, following US peers lower, after comments from Treasury Secretary Janet Yellen rattled US bank shares and Federal Reserve chief Jerome Powell said he was prepared to keep raising rates. The Topix Index fell 0.3% to 1,957.32 as of market close Tokyo time, while the Nikkei declined 0.2% to 27,419.61. Sony Group Corp. contributed the most to the Topix Index decline, decreasing 1.3%. Out of 2,159 stocks in the index, 1,256 rose and 781 fell, while 122 were unchanged. Yellen told US lawmakers that the government wasn’t considering “blanket” deposit insurance to stabilize the banking system while Powell said he was ready to keep raising rates until inflation shows signs of cooling. Japanese shares are falling after the comments, said Rina Oshimo, a senior strategist at Okasan Securities. Australian stocks joined the selloff: the S&P/ASX 200 index fell 0.7% to close at 6,968.60, in a broad decline weighed by losses in mining shares and banks. The drop followed a slump on Wall Street as the Federal Reserve pushed back against bets for interest rate cuts this year. In New Zealand, the S&P/NZX 50 index was little changed at 11,594.94 Lastly, stocks in India were among the worst performers in Asia amid a mixed trend seen across global markets as investors remained concerned over the future course of central banks’ policy actions.  The S&P BSE Sensex fell 0.5% to 57,925.28 in Mumbai, while the NSE Nifty 50 Index declined 0.4%. The gauge is now little changed this week after dropping for two out of the last four sessions. The benchmarks have slipped more than 4.5% each for the year.  The underperformance in local equities compared with Asian and emerging market peers is a result of surging interest rates in the US - the Fed raised its main lending rate by another 25 bps on Wednesday to 5% - impacting flows from overseas investors. Index-heavy software exporters and banks came under pressure on increasing worries over global economic growth.  Foreign investors have sold $2.8b of local shares this year through March 20 following inflows of about $11b over the preceding two quarters. Domestic investors have however remained buyers to the tune of $9b in 2023.  Reliance Industries contributed the most to the Sensex’s decline, decreasing 1.3%. Out of 30 shares in the Sensex index, 13 rose, while 17 fell. In FX, weakness in the dollar extended to a sixth day, with a gauge of the greenback falling to the lowest in more than a month as traders boosted bets for US interest-rate cuts, even after the Fed said more tightening may be needed.  It has since rebounded fractionally from session lows. The Norwegian krone gained 1% versus the dollar after a hawkish 25bps hike from the Norges Bank. While there were expectations that Norges Bank would stand pat after hiking today, the central bank explicitly signaled another increase in May The pound and euro advanced, with the former climbing on leveraged demand amid expectations for the Bank of England to deliver a hawkish quarter-point rate increase on Thursday, according to a trader “With the banking sector concerns still fresh, the Fed was more dovish than just a while ago and that is dragging down bond yields and the dollar,” said Daisuke Uno, chief strategist at Sumitomo Mitsui Banking Corp. “I still think the Fed will raise the rate to tame inflation, which seems to remain stubborn” The Swiss franc struggled to hold gains after the SNB opted for a 50bps increase. The Dollar Index is little changed. In rates, treasuries were cheaper across the curve, although futures remain near top of Wednesday’s range, a bull-steepening rally following Fed’s rate decision. US two-year yields are up ~2bps while UK two-year borrowing costs fall 9bps ahead of the Bank of England rate decision later today.  Thursday’s losses are belly-led, cheapening 2s5s30s fly by ~3bp on the day. Bank of England rate decision at 8am New York time is expected to be a quarter-point rate increase. US yields cheaper by 3bp-5bp across the curve with 10-year around 3.48%, near low end of Wednesday’s 3.427%-3.642% range; on the curve, 2s10s spread is wider by ~1.5bp on the day, near Wednesday’s steepest levels, while 5s30s spread tightens ~1.5bp.  Fed-dated OIS contracts price in around 13bp of rate hike premium for the May policy decision and then ~75bp of cuts by year-end. Crude futures decline with WTI falling 1.2% to trade near $70.05. Spot gold adds 0.5% to around $1,980. Bitcoin rises 1.2%. Looking to the day ahead now, monetary policy decisions will include the Bank of England, the Swiss National Bank and the Norges Bank. Data releases include the US weekly initial jobless claims, February’s new home sales, the Kansas City Fed manufacturing activity for March, and the Q4 current account balance. Finally, EU leaders will gather in Brussels for a summit. Market Snapshot S&P 500 futures up 0.5% to 3,989.00 MXAP up 1.3% to 160.31 MXAPJ up 1.5% to 517.51 Nikkei down 0.2% to 27,419.61 Topix down 0.3% to 1,957.32 Hang Seng Index up 2.3% to 20,049.64 Shanghai Composite up 0.6% to 3,286.65 Sensex little changed at 58,181.18 Australia S&P/ASX 200 down 0.7% to 6,968.61 Kospi up 0.3% to 2,424.48 STOXX Europe 600 down 0.4% to 445.25 German 10Y yield little changed at 2.28% Euro up 0.4% to $1.0897 Brent Futures down 0.2% to $76.52/bbl Gold spot up 0.4% to $1,977.01 U.S. Dollar Index down 0.18% to 102.16 Top Overnight News from Bloomberg Hong Kong’s CPI for Feb falls short of expectations, coming in at +1.7% (down from +2.4% in Jan and below the St’s +2.4% forecast). Singapore’s inflation also comes in a bit below plan at +6.3% headline for Feb (down from +6.6% in Jan and below the St’s +6.4% forecast). BBG Blinken’s planned trip to China may be in the process of getting back on track after being derailed by the Chinese balloon incident. Blinken said China will be capable of invading Taiwan by 2027. SCMP The ECB will probably need to raise borrowing costs more, though the bulk of tightening is already done, according to Governing Council member Madis Muller. BBG Ukrainian troops, on the defensive for four months, will launch a long-awaited counterassault "very soon" now that Russia's huge winter offensive is losing steam without taking Bakhmut, Ukraine's top ground forces commander said on Thursday. RTRS Swiss financial regulator Finma has defended its decision to wipe out a huge swath of risky subordinated bonds as part of the CS rescue deal. In its first statement on the deal since the weekend, Finma said that all the contractual and legal obligations had been met for it to act unilaterally given the urgency of the situation. “On Sunday, a solution was found to protect clients, the financial centr and the markets,” said Finma’s chief executive Urban Angehrn. “In this context, it is important that Credit Suisse’s banking business continues to function smoothly and without interruption.” FT Following the Fed, the BOE will probably continue its quickest series of rate increases in three decades with a 25-bp hike to 4.25%. The SNB raised rates by 50 bps and signaled more to come as it resumed its inflation fight just days after the downfall of Credit Suisse. Norges Bank raised by 25 bps to 3%, as expected, and said it will tighten further in May. BBG Freight companies are dialing back expectations that demand will recover strongly in the second half of the year amid growing economic uncertainty and signs retailers are growing more guarded about placing big orders in 2023. WSJ OPEC+ is unlikely to take action on production despite the recent slump in prices as they attribute most of the volatility to financial speculation, not fundamentals. RTRS The SEC has told Coinbase that it plans to take enforcement action against the company, escalating its crackdown on digital-currency firms by targeting the biggest U.S. crypto exchange, Coinbase said Wednesday. WSJ The Swiss National Bank raised its interest rate by 50 basis points and signaled more to come as it resumed its inflation fight just days after the downfall of the country’s second- biggest bank became the epicenter of global financial turmoil: BBG Norway’s central bank raised its key interest rate to the highest level since 2009 and signaled further tightening after higher price pressure from a weaker-than-forecast krone outweighed concerns about global banking turbulence: BBG Wall Street banks and European rivals are undoing de facto hiring freezes after Credit Suisse’s emergency rescue by UBS, unable to resist the lure of top talent available at a discount: BBG A more detailed look at global markets courtesy of Newsquawk Asia-Pac stocks traded mixed with price action choppy as markets digested the FOMC where the Fed delivered a widely expected 25bps rate hike and maintained its terminal rate view but dropped its reference regarding expectations that ‘ongoing’ rate hikes will be appropriate. ASX 200 declined amid the uninspired mood across most industries with underperformance in tech and mining. Nikkei 225 was contained by weakness in financials and after Japan maintained the overall assessment of the economy but cut the assessment on corporate profits and production for the first time since April 2020. Hang Seng and Shanghai Comp. swung between gains and losses with optimism in Hong Kong following earnings releases from Orient Overseas International and Tencent whereby the advances in the latter inspired its tech peers, although participants also digested a rate hike by the HKMA which moved in lockstep with the Fed. Top Asian News HKMA raised its base rate by 25bps to 5.25%, as expected, which is in lockstep with the Fed. RBNZ Chief Economist Conway said inflation is high and widespread because strong demand outstripped supply, while he added that they are incredibly determined to get inflation and inflation expectations back to the target. Furthermore, Conway expects monetary policy tightening to cause the New Zealand economy to enter a mild recession later this year as demand slows, as well as noted that the OCR is now comfortably above neutral and having the desired contractionary effect, according to Reuters. European bourses began the session mixed/flat, but have since dipped more convincingly into negative territory with newsflow focused on hawkish Central Bank action post-Fed thus far. Once again, the FTSE 100 is lagging its peers as focus remains firmly on the upcoming BoE announcement, FTSE 100 -1.0%. Stateside, futures are firmer though remain shy of Wednesday's best levels and have most recently eased off the sessions peak given the above action, ES +0.4%. Citi cuts their Stoxx 600 end-2023 forecast to 445 (prev. 475); FTSE 100 cut to 7600 (prev. 8000); downgrades Banks to Neutral (prev. Overweight). Top European News ECB's Muller says inflation is a bigger problem than the increase in borrowing costs. Lions share of hikes are behind us; ECB is likely to increase rates by a little. ECB's Stournaras says should not commit to any rates in advance. Italy is reportedly preparing a new package of measures worth some EUR 5bln to aid firms and families cope with energy bills, and could be unveiled next week, according to Reuters sources. Central bank decisions SNB hikes by 50bps to 1.50% vs exp. 1.50% (prev. 1.00%); does not rule out further hikes; reiterates language around price stability and FX intervention. Further increased its inflation forecasts, with CPI now not seen dropping back into the 0-2% target band until Q2-2023 (prev. Q4-2023). Click here for full details, reaction & analysis. Norges Bank hikes by 25bps to 3.00% vs exp. 3.00% (prev. 2.75%); the policy rate will be raised further in May; decision unanimous. Rate path now implies an end-2023 rate of 3.60% (prev. 3.08%). Click here for full details, reaction & analysis. Brazilian Central Bank maintained the Selic rate at 13.75%, as expected, while it will remain vigilant and will assess if the strategy of maintaining the Selic rate for a sufficiently long period of time will be enough to ensure the convergence of inflation. BCB added that inflation expectations have shown additional deterioration, especially at longer horizons and they will not hesitate to resume the tightening cycle if the disinflationary process does not proceed as expected. FX The USD remains on the back-foot after Wednesday's FOMC, though the DXY is back towards a 102.44 high after briefly printing a fresh March low of 101.91. Action which supports peers across the board and features antipodeans outperforming after recent pressure, NZD leading and cognisant of RBNZ's Conway emphasising that inflation remains high and widespread; NZD/USD and AUD/USD testing 0.63 and 0.6750 respectively. GBP is next best ahead of the BoE, Cable at a fresh March peak of 1.2343 with 25bp fully priced and a peak of around 4.45% (current 4.00%) implied. The single currency, EUR, is underpinned by the USD but with EUR/GBP pressure preventing any further appreciation; EUR/USD holding sub-1.09 while EUR/GBP near the 0.8832 low. Finally, CHF benefitted from the SNB's hawkish-hike while the NOK is back to pre-release levels as expectations for a 50bp hike unwind while the hawkish repo path adjustments are factored in. Fixed Income EGBs are underpinned with yields softer across the curve post-Fed while Gilts are closer to the unchanged mark pre-BoE, though the morning's hawkish action has sparked a pullback from best levels. Bunds hold around 136.00 and the 10yr yield now back above 2.25% after dipping to a 2.22% low; modest upside was seen in Bunds following Germany leaving its Q2 issuance calendar unrevised vs the prelim. FY release. Stateside, USTs continue to derive support from Wednesday's announcements; though, the yield curve has lifted marginally from the mid-week trough, but does remain lower overall with action most pronounced in the belly. German Q2 issuance calendar sees no changes vs the prelim. annual release. Commodities Commodities are mixed, with the crude benchmarks attempting to pare back some of their overnight losses while metals glean support from the USD's downside. Specifically, WTI and Brent are towards the lower-end of USD 69.91-70.79/bbl and USD 75.76-76.66/bbl parameters, though the benchmarks are holding above USD 70 and USD 76 respectively. Both precious and base metals are benefitting from the softer dollar; spot gold towards the upper-end of USD 1964-1983/oz parameters, just shy of Wednesday's USD 1985/oz best with base metals supported but off best given the broader risk tone. Iran's Finance Minister said Iran achieved its highest level of oil exports for at least two years last month, according to FT. Goldman Sachs said gold remains the best safe-haven asset for financial risks and raised its gold target to USD 2050/oz from 1950/oz, while it added that Chinese demand continues to surge across the commodity complex with oil demand topping 16mln bpd and it remains very positive on commodity prices with 12-month forecasted returns of 27.9% for S&P GSCI. Geopolitics China's military said it monitored and drove away a US destroyer which entered the South China Sea Paracel Islands, although the US Navy later said that the Chinese military's statement is false regarding a US destroyer being expelled from the South China Sea. Taiwan's Foreign Minister said President Tsai's meeting with the US House Speaker is still being arranged, according to Reuters. Saudi Arabia and Iran's Foreign Ministers agreed to meet soon to pave the way for the reopening of embassies, according to the Saudi state news agency. Russian Foreign Ministry Lavrov is to hold discussions with Iran's top diplomat on March 29th in Moscow, according to Tass. US mulls opening Pacific defense pact with Britain and Australia to more countries, according to Semafor. US reportedly plans to send aging A-10 attack planes to the Middle East while shifting newer jets to Asia and Europe, according to US officials cited by WSJ. US Event Calendar 08:30: March Initial Jobless Claims, est. 197,000, prior 192,000 March Continuing Claims, est. 1.69m, prior 1.68m 08:30: Feb. Chicago Fed Nat Activity Index, est. 0.10, prior 0.23 08:30: 4Q Current Account Balance, est. -$213.7b, prior -$217.1b 10:00: Feb. New Home Sales, est. 650,000, prior 670,000 Feb. New Home Sales MoM, est. -3.1%, prior 7.2% 11:00: March Kansas City Fed Manf. Activity, est. -2, prior 0 DB's Jim Ried concludes the overnight wrap In an FOMC meeting that went to script but perhaps leaned dovish, Mr Powell’s press conference was overshadowed by his predecessor’s (Yellen) simultaneous comments that a blanket guarantee of deposits had not been discussed or considered. It seems highly unlikely the US would let depositors take losses but maybe such a move won't be done pre-emptively and would require future stress first. The reaction to her comments also highlighted the nervousness and fragility underpinning a big 2-day rally. The remarks led to a late slump in equities (S&P 500 -1.65% - all post Yellen) and big rally in bonds (2yr -23bps - more than half after Yellen) and distracted from a relative uneventful FOMC, even if there were nuances worth discussing. Let’s look at the Fed first. They hiked interest rates a further 25bps to put the policy rate in a target range of 4.75-5.00%, while saying in the statement that “additional policy firming may be appropriate”. This replaced "ongoing increases in the target rate will be appropriate". So a softening in language. The pace and asset makeup of QT was unchanged as expected. The median dot plot projection showed fed funds ending 2023 at 5.1%, unchanged from December, and up by roughly one hike to 4.3% at the end of 2024. Despite the median remaining unchanged, there was some upward migration in the dot plot for 2023. In terms of economic projections, the Fed had Core PCE inflation up modestly both this year (3.6% from 3.5% in Jan) and next (2.6% from 2.5% in Jan), but saw risks as “broadly balanced” rather than “weighted to the upside” as we had seen last meeting. On the banking stress, the Fed’s statement noted that it is “likely to result in tighter credit conditions for households and businesses and to weigh on economic activity, hiring and inflation.” At the press conference, Chair Powell opened with a statement on the banking sector first by saying that the US banking system is sound and that the Fed programs are “effectively meeting” liquidity needs while policymakers are closely monitoring the situation. He also noted that the events of the past week are likely to weigh on lending standards and slow the economy, which may in fact necessitate fewer rate hikes than thought before. Chair Powell noted that some officials considered a pause in the days leading up to the meeting, however in the end it was a unanimous vote to hike rates. The "pause" word sparked a front-end rally. Our US economists have maintained their terminal rate view of 5.1% following another 25bp rate hike in May. They note there is elevated uncertainty around this modal outcome. Financial and credit conditions along with inflation data will be important to watch in the weeks ahead. See their FOMC review note here for more. The S&P 500 went into the FOMC announcement about flat on the day (-0.04%), having traded in a 0.60% range through much of the US trading session. The initial statement saw a pop in sentiment, before stocks whipsawed through the Chair’s opening statement and peaked up around +0.9% on the day as he noted “disinflation is intact.” However, comments on credit conditions tightening further and rate cuts in 2023 not being the FOMC’s “baseline expectation” saw risk sentiment fall. Roughly an hour prior to the close Chair Powell also acknowledged that the Fed was still open to further rate hikes if the data proves them necessary. At the same time, his predecessor, Treasury Secretary Yellen said to a Senate subcommittee hearing that, “I have not considered or discussed anything having to do with blanket insurance or guarantees of deposits.” She also noted that it was not yet the time to discuss changing the FDIC insurance cap. Risk sold off harder after this with the S&P falling over -1.5% over the last hour of trading to finish at the lows of the day at -1.65%. 493 of the index’s constituents were lower yesterday with Banks leading the late move lower. The KBW index closed down -4.70% on the back of significant regional bank losses once again led by First Republic (-15.5%), while the majors held up relatively better with JPM (-2.6%), C (-3.0%), and BAC (-3.3%) outperforming. Fixed income markets saw more one way traffic with 10yr US Treasury yields -17.53bps lower on the day to 3.43% after being roughly unchanged around the European close and rallying though the FOMC statement and the risk-off move that followed. US 2yr yields were actually higher in the US morning before being unchanged just prior to the meeting and then rallying through the US afternoon to finish the day -23.0bps lower at 3.937% - just off the lows of the day. Following the meeting, fed futures are pricing in a 46% chance of a hike at the next meeting in May, and then roughly 70bps of cut by year-end despite the comments from Chair Powell. This morning in Asia, we are seeing a further steepening in the curve with 2yrs -6bps but 10yrs +1bps. 2s10s is now -44bps after being in the low -60s before the FOMC statement. See our rates strategists' call and rationale for steepeners here for more on the forces around this trade. So the mood completely changed in the last hour or so. Ahead of the Fed, European markets had actually continued to normalise following last week’s volatility. For instance, equities put in another steady performance, with the STOXX 600 (+0.15%) posting a third consecutive advance. Sovereign bond yields also moved higher, with those on 10yr bunds (+3.6bps) at a one-week high of 2.328% as investors priced out the chances of an imminent pause in rate hikes from the ECB. In part, that was supported by a Bloomberg article later in the session, which reported that ECB officials were growing in confidence that they had withstood the current turmoil, whilst concern remained that inflation still needed tackling. When it came to banks however, the rally at the start of the week showed signs of petering out, with the STOXX Banks index coming down -0.69%, and UBS falling -3.71%. Looking forward, central banks will remain in the spotlight today, with the Bank of England’s decision coming up at midday London time. Up until yesterday, market pricing had been more in the balance on whether they’d keep hiking or pause. But just after we went to press yesterday, there was a big upside surprise in the February CPI print. That showed an unexpected increase in the year-on-year measure to +10.4% (vs. +9.9% expected), and core CPI also rose to +6.2% (vs. +5.7% expected). Furthermore, that was faster than the BoE’s own staff projections too, with last month’s Monetary Policy Report predicting a +9.9% reading like the consensus. On the back of that print, investors ratcheted up the probability of a 25bp hike today, with overnight index swaps currently placing a 91% probability on such a move. That echoes the view of our UK economist, who is also expecting a 25bp increase in the Bank Rate that would take it up to a post-2008 high of 4.25%. In his preview (link here), he sees a 6-3 vote split in favour of the 25bp hike, but the big question now will be what they indicate in the forward guidance, and whether they echo the Bank of Canada’s move in making a “conditional pause” more explicit. Asian equity markets are mixed this morning despite an overnight slump on Wall Street. US stock futures being notably higher is helping, with contracts tied to the S&P 500 (+0.43%) and NASDAQ 100 (+0.45%) seeing mild gains. As I type, the Nikkei (-0.30%) as well as the KOSPI (-0.11%) are edging lower but the Hang Seng (+0.78%) is trading in the green after technology heavyweight Tencent yesterday reported better than expected quarterly revenues. Meanwhile, the CSI (+0.36%) is trading higher with the Shanghai Composite (-0.01%) swinging between gains and losses. In FX, the US dollar (as measured by the DXY index) remains under pressure, trading near a seven-week low of 102.105 on the prospect of less Fed tightening ahead. In other news yesterday, UK MPs voted overwhelmingly in favour of the Windsor Framework, which is the recently agreed adjustment to the Brexit deal’s arrangements for Northern Ireland. In the end the vote was 515-29 in favour, although the opponents included former PMs Boris Johnson and Liz Truss. To the day ahead now, and monetary policy decisions will include the Bank of England, the Swiss National Bank and the Norges Bank. Data releases include the US weekly initial jobless claims, February’s new home sales, the Kansas City Fed manufacturing activity for March, and the Q4 current account balance. In the Euro Area, we’ll also get the preliminary consumer confidence reading for March. Finally, EU leaders will gather in Brussels for a summit. Tyler Durden Thu, 03/23/2023 - 07:58.....»»

Second quarter net earnings of $179.8 million, or $1.51 per diluted share Core EBITDA of $302.8 million Volume and value of North America downstream backlog near all-time highs Project bid volumes grew by a double-digit percentage year-over-year, signaling strength in upcoming construction season Arizona 2 project start-up on target; expected to begin production in the spring of 2023 IRVING, Texas, March 23, 2023 /PRNewswire/ -- Commercial Metals Company (NYSE:CMC) today announced financial results for its fiscal second quarter ended February 28, 2023.  Net earnings were $179.8 million, or $1.51 per diluted share, on net sales of $2.0 billion, compared to prior year period net earnings of $383.3 million, or $3.12 per diluted share, on net sales of $2.0 billion. During the second quarter of fiscal 2023, the Company recorded a net after-tax benefit of $14.0 million related to the settlement of an incentive resulting from the previous capital investment at CMC's Steel Oklahoma micro mill. This benefit was partially offset by approximately $5.4 million in net after-tax costs associated with ongoing commissioning efforts at Arizona 2.  Excluding these items, second quarter adjusted earnings were $171.3 million, or $1.44 per diluted share, compared to adjusted earnings of $187.6 million, or $1.53 per diluted share, in the prior year period.  The second quarter of fiscal 2022 included a net after-tax benefit of $195.8 million, primarily related to a gain on the sale of real estate in Southern California. "Adjusted EBITDA," "core EBITDA," "adjusted earnings" and "adjusted earnings per diluted share" are non-GAAP financial measures. Details, including a reconciliation of each such non-GAAP financial measure to the most directly comparable measure prepared and presented in accordance with GAAP, can be found in the financial tables that follow. Barbara R. Smith, Chairman of the Board, President and Chief Executive Officer, said, "CMC achieved strong financial results during the second quarter while managing a number of challenges, including weather-related shipment disruptions in our core geographies, costs associated with a major planned outage and steel product metal margin pressures.  These headwinds notwithstanding, our key internal indicators remain positive, signaling a strong outlook for demand conditions in North America during the 2023 construction season and beyond.  We are entering spring with record backlog value for this time of year and continue to experience healthy project bid volumes, giving us confidence in the strength of our book of business.  Additionally, CMC stands to benefit from sustainable strong demand from reshoring-oriented industrial projects and public infrastructure work, the more rebar-intensive nature of which represents a long-term tailwind for our business." Ms. Smith continued, "The start-up of our Arizona 2 mill by the end of this spring positions CMC to capitalize on these emerging structural trends.  We are currently finalizing on-site preparation for commissioning and are excited to ramp up this world-class asset, the first in the world to have merchant bar production capabilities in a continuous process.  Together with our fourth micro mill under development in Berkeley County, West Virginia and our Tensar growth platform, we continue to expect that our strategic investments will meaningfully enhance CMC's through-the-cycle cash flows and return on capital, creating substantial value for our shareholders while also enhancing our leadership position in sustainability metrics." The Company's balance sheet and liquidity position remained strong as of February 28, 2023.  Cash and cash equivalents ended the quarter at $604.0 million, while available liquidity totaled $1.5 billion.  CMC repurchased 330,000 shares of common stock during the quarter, returning $17.2 million of cash to shareholders.  As of February 28, 2023, $121.8 million remained available under the current share repurchase authorization. On March 22, 2023, the board of directors declared a quarterly dividend of $0.16 per share of CMC common stock payable to stockholders of record on April 3, 2023. The dividend to be paid on April 12, 2023, marks the 234th consecutive quarterly payment by the Company, and represents a 14% increase from the dividend paid in April 2022.  Business Segments - Fiscal Second Quarter 2023 Review Demand for CMC's finished steel products in North America remained healthy during the quarter, though construction activity slowed in certain geographies due to weather-related disruptions.  Downstream bid volumes, a significant indicator of the construction project pipeline, improved from a year ago, resulting in expansion of contract backlog volume and value levels compared to the prior year period.  Demand from industrial end markets, which are important for merchant products, were stable on both a sequential and year-over-year basis. The North America segment reported adjusted EBITDA of $299.3 million for the second quarter of fiscal 2023, in comparison to $535.5 million in the prior year period.  Excluding a $273.3 million gain on the sale of real estate recognized during the prior year period, the current year results represent a 14% increase.  The improvement was driven by expanded margins over scrap cost on shipments of steel and downstream products.  Controllable costs per ton of finished steel increased compared to the first quarter of fiscal 2023, primarily due to a significant scheduled replacement project that occurred during the quarter, as well as lower fixed cost leverage on seasonally slower shipments.  Per unit costs of several key consumables continued to moderate throughout the quarter after reaching a peak late in fiscal 2022. Shipment volumes of finished steel, which include steel products and downstream products, were relatively unchanged from the prior year period.  Volume growth was constrained by weather challenges that included freezing and icy conditions in Texas and Oklahoma and flooding in California.  The average selling price for steel products decreased by $56 per ton compared to the second quarter of fiscal 2022, while the cost of scrap utilized declined $90 per ton, resulting in a year-over-year increase of $34 per ton in steel products margin over scrap.  The average selling price for downstream products increased by $249 per ton from the prior year period and $19 per ton on a sequential quarter basis.  The Europe segment reported adjusted EBITDA of $12.9 million for the second quarter of fiscal 2023, down 84% compared to adjusted EBITDA of $81.1 million for the prior year period.  The decline was driven by higher energy costs, lower metal margins, and a modest reduction in shipment volumes.  Europe end market demand was mixed during the quarter.  Polish construction activity continued to grow modestly on a year-over-year basis, while industrial production across Central Europe continued to contract. CMC's advantageous cost position and operational flexibility provided the ability to maintain strong shipment levels.  Second quarter of fiscal 2023 volume of 436,000 tons was 20% above the average quarterly level of the last 10 years. Average selling price decreased by $95 per ton in the second quarter compared to the prior year period, while the cost of scrap utilized declined $55 per ton. The result was a year-over-year decline in margin over scrap of $40 per ton.  Average selling price and margin over scrap also decreased on a sequential basis by $36 per ton and $59 per ton, respectively. Outlook Ms. Smith said, "We remain confident in our outlook for financial performance in fiscal 2023, and we expect to generate sequential improvement in core EBITDA during the third quarter.  North America finished steel product shipments are anticipated to improve from second quarter levels due to normal seasonality, the recovery of volumes delayed by weather disruptions, and the support of a historically high downstream backlog.  We expect current and new industrial projects, as well as growing levels of state and federal infrastructure spending, will support CMC's North America volumes in the quarters ahead.  In Europe, we anticipate seasonal improvement, and expect shipment levels will remain above the long-term historical average due to the enhanced production capabilities of our facilities."  Ms. Smith added, "In the third quarter, we look forward to commissioning our Arizona 2 micro mill, representing the next phase of growth at CMC, and we also anticipate that recent North America long steel price increase announcements will stabilize metal margins at historically high levels.  At the same time, the third quarter will be impacted by a scheduled upgrade project similar in magnitude to the planned outage taken during the second quarter." Conference Call CMC invites you to listen to a live broadcast of its second quarter fiscal 2023 conference call today, Thursday, March 23, 2023, at 11:00 a.m. ET.  Barbara R. Smith, Chairman of the Board, President and Chief Executive Officer, and Paul Lawrence, Senior Vice President and Chief Financial Officer, will host the call. The call is accessible via our website at www.cmc.com. In the event you are unable to listen to the live broadcast, the call will be archived and available for replay on our website on the next business day. Financial and statistical information presented in the broadcast are located on CMC's website under "Investors." About Commercial Metals Company Commercial Metals Company and its subsidiaries manufacture, recycle and fabricate steel and metal products and provide related materials and services through a network of facilities that includes seven electric arc furnace ("EAF") mini mills, two EAF micro mills, one rerolling mill, steel fabrication and processing plants, construction-related product warehouses and metal recycling facilities in the United States and Poland. Through its Tensar operations, CMC is a leading global provider of innovative ground and soil stabilization solutions selling into more than 80 national markets through two major product lines: Tensar® geogrids and Geopier® foundation systems. Forward-Looking Statements This news release contains forward-looking statements within the meaning of the federal securities laws with respect to general economic conditions, key macro-economic drivers that impact our business, the effects of ongoing trade actions, the effects of continued pressure on the liquidity of our customers, potential synergies and organic growth provided by acquisitions and strategic investments, demand for our products, shipment volumes, metal margins, the effect of COVID-19 and related governmental and economic responses thereto, the ability to operate our steel mills at full capacity, future availability and cost of supplies of raw materials and energy for our operations, share repurchases, legal proceedings, construction activity, international trade, the impact of the Russian invasion of Ukraine, capital expenditures, tax credits, our liquidity and our ability to satisfy future liquidity requirements, estimated contractual obligations, the expected capabilities and benefits of new facilities, the timeline for execution of our growth plan, and our expectations or beliefs concerning future events. The statements in this release that are not historical statements, are forward-looking statements. These forward-looking statements can generally be identified by phrases such as we or our management "expects," "anticipates," "believes," "estimates," "future," "intends," "may," "plans to," "ought," "could," "will," "should," "likely," "appears," "projects," "forecasts," "outlook" or other similar words or phrases, as well as by discussions of strategy, plans or intentions. Our forward-looking statements are based on management's expectations and beliefs as of the time this news release was prepared. Although we believe that our expectations are reasonable, we can give no assurance that these expectations will prove to have been correct, and actual results may vary materially. Except as required by law, we undertake no obligation to update, amend or clarify any forward-looking statements to reflect changed assumptions, the occurrence of anticipated or unanticipated events, new information or circumstances or any other changes. Important factors that could cause actual results to differ materially from our expectations include those described in our filings with the Securities and Exchange Commission, including, but not limited to, in Part I, Item 1A, "Risk Factors" of our annual report on Form 10-K for the fiscal year ended August 31, 2022 as well as the following: changes in economic conditions which affect demand for our products or construction activity generally, and the impact of such changes on the highly cyclical steel industry; rapid and significant changes in the price of metals, potentially impairing our inventory values due to declines in commodity prices or reducing the profitability of our downstream contracts due to rising commodity pricing; excess capacity in our industry, particularly in China, and product availability from competing steel mills and other steel suppliers including import quantities and pricing; the impact of the Russian invasion of Ukraine on the global economy, inflation, energy supplies and raw materials, which is uncertain, but may prove to negatively impact our business and operations; increased attention to environmental, social and governance ("ESG") matters, including any targets or other ESG or environmental justice initiatives; operating and startup risks, as well as market risks associated with the commissioning of new projects could prevent us from realizing anticipated benefits and could result in a loss of all or a substantial part of our investments; impacts from global public health epidemics, including the COVID-19 pandemic, on the economy, demand for our products, global supply chain and on our operations; compliance with and changes in existing and future laws, regulations and other legal requirements and judicial decisions that govern our business, including increased environmental regulations associated with climate change and greenhouse gas emissions; involvement in various environmental matters that may result in fines, penalties or judgments; evolving remediation technology, changing regulations, possible third-party contributions, the inherent uncertainties of the estimation process and other factors that may impact amounts accrued for environmental liabilities; potential limitations in our or our customers' abilities to access credit and non-compliance with their contractual obligations, including payment obligations; activity in repurchasing shares of our common stock under our share repurchase program; financial and non-financial covenants and restrictions on the operation of our business contained in agreements governing our debt; our ability to successfully identify, consummate and integrate acquisitions and realize any or all of the anticipated synergies or other benefits of acquisitions; the effects that acquisitions may have on our financial leverage; risks associated with acquisitions generally, such as the inability to obtain, or delays in obtaining, required approvals under applicable antitrust legislation and other regulatory and third party consents and approvals;  lower than expected future levels of revenues and higher than expected future costs; failure or inability to implement growth strategies in a timely manner; the impact of goodwill or other indefinite lived intangible asset impairment charges; the impact of long-lived asset impairment charges; currency fluctuations; global factors, such as trade measures, military conflicts and political uncertainties, including changes to current trade regulations, such as Section 232 trade tariffs and quotas, tax legislation and other regulations which might adversely impact our business; availability and pricing of electricity, electrodes and natural gas for mill operations; our ability to hire and retain key executives and other employees; competition from other materials or from competitors that have a lower cost structure or access to greater financial resources; information technology interruptions and breaches in security; our ability to make necessary capital expenditures; availability and pricing of raw materials and other items over which we exert little influence, including scrap metal, energy and insurance; unexpected equipment failures; losses or limited potential gains due to hedging transactions; litigation claims and settlements, court decisions, regulatory rulings and legal compliance risks; risk of injury or death to employees, customers or other visitors to our operations; and civil unrest, protests and riots.   COMMERCIAL METALS COMPANY FINANCIAL & OPERATING STATISTICS (UNAUDITED) Three Months Ended Six Months Ended (in thousands, except per ton amounts) 2/28/2023 11/30/2022 8/31/2022 5/31/2022 2/28/2022 2/28/2023 2/28/2022 North America Net sales $  1,640,933 $  1,816,899 $  1,997,636 $  2,033,150 $  1,614,224 $  3,457,832 $  3,267,846 Adjusted EBITDA 299,311 377,956 370,516 379,355 535,463 677,267 803,987 External tons shipped Raw materials 321 316 359 353 329 637 663 Rebar 425 461 451 505 407 886 849 Merchant and other 236 243 249 274 245 479 502 Steel products 661 704 700 779 652 1,365 1,351 Downstream products 311 382 432 399 327 693 727 Average selling price per ton Raw materials $           868 $           824 $           950 $       1,207 $       1,103 $           846 $       1,068 Steel products 985 1,020 1,104 1,110 1,041 1,003 1,007 Downstream products 1,418 1,399 1,348 1,244 1,169 1,408 1,126 Cost of raw materials per ton $           639 $           598 $           717 $           908 $           834 $           618 $           800 Cost of ferrous scrap utilized per ton $           346 $           325 $           387 $           472 $           436 $           335 $           432 Steel products metal margin per ton $           639 $           695 $           717 $           638 $           605 $           668 $           575.....»»

Investments in technology solutions that enhance communications experience are likely to aid the Zacks Audio Video Production industry participants. However, High competition from low-priced device importers is a concern for Sony Corporation (SONY), Dolby Laboratories (DLB) and GoPro (GPRO). The companies within the Zacks Audio Video Production industry are concentrating on the premium segment of the branded products market for business growth. Sony Corporation SONY, Dolby Laboratories DLB and GoPro GPRO are likely to benefit from investments in cutting-edge technology solutions that create better communications experience. Easing supply chain issues are likely to aid the performance of these companies. However, muted consumer demand amid a weak macroeconomic environment globally remains a concern at least in the near term. Fierce competition from importers of comparatively low-priced devices puts pressure on these industry players. Online accessibility of recording equipment and the availability of distribution channels on the Internet are a headwind.Industry DescriptionThe Zacks Audio Video Production industry comprises television, speaker, video player and camcorder manufacturers. It includes companies that offer gaming consoles, drones and high-end cameras for individuals and industrial markets. These firms provide state-of-the-art audio, imaging and voice technologies that enhance entertainment and communication experiences. Some industry participants develop audio and imaging products, including digital cinema servers and products for film production and entertainment industries. Apart from providing theatrical and television production services for cinema exhibitions, broadcast and home entertainment, these companies work with film studios, content creators, broadcasters and video game designers. Some prominent players are present in the music and image-based software markets worldwide.What's Shaping the Future of Audio Video Production IndustryTechnological Advancement to Spur Growth: Over the years, the shift to digital technology has catered to the demand for high-resolution video, reduced the problems of radio frequency and electromagnetic interference, making audio-visual systems more data-network friendly. Wireless transmission has enabled the broadcast of audio and video signals through wireless data networks seamlessly while enhancing productivity. The industry players have been offering services to diverse media producers. That said, easy online accessibility of recording equipment and the widespread availability of distribution channels on the Internet pose challenges.Increasing Demand for Premium Entertainment: The industry has performed well despite drastic changes in how media is consumed and distributed. The rise in demand for premium entertainment from record labels, TV producers, and advertisers is likely to stoke profitable growth. Demand for video post-production services will increase in the coming days as the downstream market continues to grow. Strong demand across all regions with a more direct-to-consumer, subscription-centric model bodes well for the industry participants.Aggressive Competition: In the United States, smart-connected televisions, microphones and speaker enclosures are customers’ most popular electronic devices. But the U.S. manufacturers of audio and video systems persistently face intense competition from importers of comparatively low-priced devices, particularly from China, Vietnam and Mexico. The firms face stiff competition across all end markets, often leading to intense price wars and margin contraction. The companies will likely benefit from investments in cutting-edge technology solutions that create a seamless communications experience.Macroeconomic Headwinds Likely to Hurt Consumer Demand: The global macroeconomic weakness owing to the Ukraine war and inflationary pressure is likely to affect consumer demand, especially discretionary purchases. While the companies keep investing for market share gains and supply chain resilience, a shortage of critical hardware components due to supply chain disruptions (although disruptions are easing somewhat) is expected to hurt revenues in the near term. Unit volume shipments across end markets and devices are expected to decline. Fluctuations in commodity pricing for different components are additional concerns.Zacks Industry Rank Indicates Bright ProspectsThe Zacks Audio Video Production industry is housed within the broader Zacks Consumer Discretionary sector. It currently has a Zacks Industry Rank #68, which places it in the top 27% of more than 248 Zacks industries.The group’s Zacks Industry Rank, which is the average of the Zacks Rank of all the member stocks, indicates bright near-term prospects. Our research shows that the top 50% of the Zacks-ranked industries outperform the bottom 50% by a factor of more than 2 to 1.Before we present a few audio-video production stocks that you may want to consider for your portfolio, let’s look at the industry’s recent stock market performance and valuation picture.Industry Lags S&P 500, Outperforms the SectorThe Zacks Audio Video Production industry has outperformed the broader Zacks Consumer Discretionary sector but lagged the S&P 500 composite in the past year.The industry has plunged 15.6% over this period against the S&P 500’s decline of 13.5%. The broader sector has declined 23.3%.One-Year Price Performance Industry's Current ValuationPrice-to-sales is commonly used for valuing audio-video production stocks. The industry has a trailing 12-month P/S of 1.07X compared with the S&P 500’s 3.47X. It is below the sector’s trailing 12-month P/S of 1.90X.In the past five years, the industry has traded as high as 1.43X and as low as 0.63X with a median of 0.93X, as the chart below shows.Price-to-Sales TTM Ratio (Past Five Years) 3 Audio Video Production Stocks to Keep an Eye onSony: Headquartered in Tokyo, Japan, Sony designs, manufactures and sells several consumer and industrial electronic equipment. The company’s product roster comprises audio and video equipment, televisions, displays, semiconductors, electronic components, gaming consoles, computers, computer peripherals and telecommunication equipment. Sony actively produces, acquires and distributes motion pictures and television programming and operates television and digital networks. Further, the company has a global presence in the music and image-based software markets.Sony’s performance benefited from improving sales in the company’s Games & Network (GN&S) segment. The company now expects to sell more than 19-million-unit sales for its PlayStation 5 in the current year. Also, continued strength in Music and Entertainment, Technology & Services (ET&S) segment augurs well. The company’s Music segment benefited from higher recorded music and music publishing sales from paid subscription streaming services. Frequent product launches and strategic collaborations bode well.At present, Sony carries a Zacks Rank #2 (Buy).  You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.   The Zacks Consensus Estimate for its current-year earnings is pegged at $5.36 per share. The long-term growth rate stands at 5.9%.Price and Consensus: SONYGoPro: Headquartered in San Mateo, CA, GoPro is one of the world’s leading manufacturers of handy cameras. GoPro’s performance is benefiting from an increasing its subscriber base and expanding direct-to-consumer business.The company’s subscriber base is gaining from the increased conversion of retail customers into GoPro subscribers through the GoPro app. In the fourth quarter, the company’s subscriber base rose 43% year over year to 2.25 million. The company plans to invest heavily in synced mobile, cloud and desktop software in 2023 to boost its subscriber engagement and float a higher-priced subscription tier. Frequent product launches are expected to act as tailwinds. However, the company expects channel inventory to decline owing to inventory tightening by retail and distribution partners in the near term.At present, GPRO carries a Zacks Rank #3 (Hold). The consensus estimate for its current-year earnings is pegged at 26 cents per share.Price and Consensus: GPRO Dolby Laboratories: San Francisco, CA-based Dolby Laboratories specializes in audio noise reduction and audio encoding/compression technologies to revolutionize entertainment and communications at theaters, home, work and mobile devices. Dolby’s performance is benefiting from the increasing adoption of Dolby Atmos, Dolby Vision, and new imaging patents. The company expects revenues from these businesses to grow in the range of 15-25% in fiscal 2023, driven by continued momentum in broadcast, mobile and other markets. The company is likely to benefit from Dolby.io, which enables developers to build immersive online experiences. However, lower shipments in PC, broadcast, consumer electronics and gaming are denting Dolby’s performance. As a result, the company expects its audio revenues to decline by mid-single digits during fiscal 2023.At present, Dolby carries a Zacks Rank #3. The Zacks Consensus Estimate for its current-year earnings is pegged at $3.44 per share. The long-term growth rate stands at 16%.Price and Consensus: DLB  Infrastructure Stock Boom to Sweep America A massive push to rebuild the crumbling U.S. infrastructure will soon be underway. It’s bipartisan, urgent, and inevitable. Trillions will be spent. Fortunes will be made. The only question is “Will you get into the right stocks early when their growth potential is greatest?” Zacks has released a Special Report to help you do just that, and today it’s free. Discover 5 special companies that look to gain the most from construction and repair to roads, bridges, and buildings, plus cargo hauling and energy transformation on an almost unimaginable scale.Download FREE: How To Profit From Trillions On Spending For Infrastructure >>Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Dolby Laboratories (DLB): Free Stock Analysis Report GoPro, Inc. (GPRO): Free Stock Analysis Report Sony Corporation (SONY): Free Stock Analysis ReportTo read this article on Zacks.com click here.Zacks Investment Research.....»»

The S&P 500 could finish the year 13% higher as interest rates fall and postpone a downturn, according to Fundstrat. Getty Images / Spencer Platt Stocks could take off this year as the US delays a recession, Fundstrat's Mark Newton said. Newton pointed to falling interest rate expectations, which are a "big positive" for the market. He predicted the S&P 500 could finish 2023 at 4,500, implying a 13% increase from current levels. A recession could be postponed for years, and the stock market is poised for a big bounce after it works through the current wave of banking turmoil, according to Fundstrat's global head of technical strategy Mark Newton.Though investors are still grappling with fears of a banking crisis, he reiterated his bullish view on stocks in an interview with CNBC on Monday. While the market could weather another tough four to six months if financial stocks don't see a sharp rebound soon, he forecasted the S&P 500 could hit 4,500 by year-end, implying a 13% jump from current levels."My thinking is we're going to have a pretty decent bounce in the next couple years before potentially we see a late-decade, potentially a pullback. I think that the recession potentially could be postponed. It probably can't be avoided completely, but for this year and next year I'm clearly in the no landing [camp]," Newton said.His view is contrary to other commentators, who say the recent collapse of Silicon Valley Bank has raised the odds of a recession this year. Banking troubles naturally slow down the economy, according to DataTrek co-founder Nicholas Colas, who told Insider he didn't see the US making it through the next 12 months without tipping into a downturn.But Newton expects Fed officials to dial back interest rates in order to avoid putting pressure on the banking system. Lower rates are a "big positive" for stocks, while rising interest rates weighed down the S&P 500 heavily in 2022.That momentum can already be seen in tech and growth stocks, with the tech-heavy Nasdaq Composite surging 13% from the start of the year as investors anticipate lower interest rates ahead."If you see a broad-based rally in technology, yes, that does have the potential to carry markets higher or keep them resilient in the face of bad news, particularly when everyone is pessimistic," Newton added. Central bankers are expected to deliver their next decision on Wednesday. Markets have priced in an 82% chance the Fed lifts rates by 25 basis points, and an 18% chance the Fed pauses its tightening cycle, according to the CME FedWatch tool.Read the original article on Business Insider.....»»

VANCOUVER, BC, March 17, 2023 /PRNewswire/ - Ballard Power Systems (NASDAQ:BLDP) (TSX:BLDP) today announced consolidated financial results for the fourth quarter ended December 31, 2022. All amounts are in U.S. dollars unless otherwise noted and have been prepared in accordance with International Financial Reporting Standards (IFRS). "With an increasingly constructive policy landscape for hydrogen globally, we are excited by the growing end customer interest to decarbonize mobility and stationary power applications with fuel cells," said Randy MacEwen, President and CEO. "2022 proved to be an important year for Ballard as we achieved key customer platform wins across our verticals of bus, truck, rail and marine, along with early traction in select stationary power applications. This dynamic is supporting our planned transition of Ballard's business model to a heavier focus on growing sales of Power Products and reduced relative contribution of Technology Solutions. Bolstered by strong order intake in Q4 in Europe and North America, we ended 2022 with an Order Backlog of $133.4 million, with Power Products up more than double from the end of 2021 and up almost 60% from the end of Q3." "We are also excited with the measured progress we are making on our investments in strategic technology and product development programs and advanced manufacturing initiatives, underpinning our roadmap for continued product performance improvements while also achieving significant product cost reductions," Mr. MacEwen added. Mr. MacEwen continued, "In Q4, we delivered revenue of $20.5 million and gross margin of (29)%. On revenue, we continue to be disappointed with delayed adoption in the China market and low activity levels at the Weichai-Ballard JV, which weighed on our 2022 results. We are working closely with our Weichai-Ballard JV to unlock growth in the China fuel cell bus and truck markets. Gross margin results partly reflect strategic pricing on customer platform wins during a period of inflationary costs. We expect these dynamics to persist into 2024 until our volume ramps and our product cost reduction initiatives move into production. On costs, we achieved our guided targets for total operating expenses and capital expenditures for full year 2022. We ended the year with $913.7 million in cash reserves." Mr. MacEwen concluded, "In 2023, we believe we are well positioned to compete and grow in an increasingly exciting market. We continue to prudently manage our balance sheet as we execute on our planned investments in technology and products, advanced manufacturing, product cost reduction, our local-for-local manufacturing strategy, and providing an outstanding customer experience." Q4 2022 Financial Highlights(all comparisons are to Q4 2021 unless otherwise noted) Total revenue was $20.5 million in the quarter, down 44% year-over-year. Power Products revenue of $13.5 million decreased 49%, driven by lower shipments of fuel cell products. Heavy-Duty revenues of $9.2 million decreased 59% due to lower shipments of fuel cell products in China and Europe. Stationary Power Generation revenues of $2.7 million decreased 2%, due to lower sales in Europe, partially offset by increased sales in China. Material Handling revenues of $1.6 million increased 23%, primarily as a result of higher shipments to Plug Power. Technology Solutions revenue of $7.0 million decreased 31% due primarily to decreased amounts earned on the Weichai Ballard JV and substantial completion of the Audi program. Gross margin was (29)% in the quarter, a decrease of 42-points, driven by a combination of a greater weight of power products in the revenue mix, pricing strategy, increased investment in manufacturing capacity, increases in supply costs and inventory adjustments. Total Operating Expenses and Cash Operating Costs3 were $37.0 million and $30.6 million, respectively, in the quarter, an increase of 15% and 15%, respectively. Increases were driven primarily by higher expenditure on research, technology and product development activities. Adjusted EBITDA3 was ($46.4) million, compared to ($25.5) million in Q4 2021, primarily a result of the decrease in gross margin and increase in Cash Operating Costs. Ballard received approximately $52.2 million of new orders in Q4, and delivered orders valued at $20.5 million, resulting in an Order Backlog of approximately $133.4 million at end-Q4. Order Backlog growth was driven predominantly by increased orders from Europe, which now represent approximately 64% of the total Order Backlog, compared to approximately 38% at end-Q4 2021. Specifically, the Power Products backlog as of Q4 2022 is more than double the amount in Q4 2021, and is up almost 60% from end-Q3 2022. The 12-month Order Book was $57.3 million at end-Q4, an increase of $6.3 million from the end of Q3 2022. The 12-month Power Products Order Book increased by 37% as compared to end-Q4 2021 and by a similar percentage from the end of Q3 2022. Additionally, order intake in of $52.2 million in Q4 2022 was 124% higher than the 12 month average ending in Q3 2022 of $23.3 million. Order Backlog ($M) Order Backlog at End-Q3 2022 Orders Received in Q4 2022 Orders Delivered in Q4 2022 Order Backlog at End-Q4 2022 Total Fuel CellProducts & Services $101.7 $52.2 $20.5 $133.4   2023 Outlook Consistent with the Company's past practice, and in view of the early stage of hydrogen fuel cell market development and adoption, we are not providing specific revenue or net income (loss) guidance for 2023. In 2023, we continue our plan to invest in the business ahead of the hydrogen growth curve. Ballard's Total Operating Expense4 and Capital Expenditure5 guidance ranges for 2023 are as follows: 2023 Guidance Total Operating Expense4 $135 - $155 million Capital Expenditure5 $40 - $60 million   Q4 2022 Financial Summary (Millions of U.S. dollars)  Three months ended December 31 2022 2021 % Change REVENUE Fuel Cell Products & Services:1,2   Heavy Duty Motive $9.2 $22.5 (59) %   Material Handling $1.6 $1.3 23 %   Stationary Power Generation $2.7 $2.7 (2) %   Sub-Total $13.5 $26.6 (49) %   Technology Solutions $7.0 $10.1 (31) % Total Fuel Cell Products & Services Revenue $20.5 $36.7 (44) % PROFITABILITY Gross Margin $ ($5.9) $4.8 (224) % Gross Margin % (29) % 13 % (42)pts Operating Expenses $37.0 $32.3 15 % Cash Operating Costs3 $30.6 $26.6 15 % Equity loss in JV & Associates ($6.8) ($4.9) 39 % Adjusted EBITDA3 ($46.4) ($25.5) (82) % Net Loss from continuing operations ($34.4) ($43.8) 21 % Loss Per Share ($0.12) ($0.15) (15) % CASH Cash provided by (used in) Operating ...Full story available on Benzinga.com.....»»

VANCOUVER, BC, March 17, 2023 /CNW/ - Ballard Power Systems (NASDAQ:BLDP) (TSX:BLDP) today announced consolidated financial results for the fourth quarter ended December 31, 2022. All amounts are in U.S. dollars unless otherwise noted and have been prepared in accordance with International Financial Reporting Standards (IFRS). "With an increasingly constructive policy landscape for hydrogen globally, we are excited by the growing end customer interest to decarbonize mobility and stationary power applications with fuel cells," said Randy MacEwen, President and CEO. "2022 proved to be an important year for Ballard as we achieved key customer platform wins across our verticals of bus, truck, rail and marine, along with early traction in select stationary power applications. This dynamic is supporting our planned transition of Ballard's business model to a heavier focus on growing sales of Power Products and reduced relative contribution of Technology Solutions. Bolstered by strong order intake in Q4 in Europe and North America, we ended 2022 with an Order Backlog of $133.4 million, with Power Products up more than double from the end of 2021 and up almost 60% from the end of Q3." "We are also excited with the measured progress we are making on our investments in strategic technology and product development programs and advanced manufacturing initiatives, underpinning our roadmap for continued product performance improvements while also achieving significant product cost reductions," Mr. MacEwen added. Mr. MacEwen continued, "In Q4, we delivered revenue of $20.5 million and gross margin of (29)%. On revenue, we continue to be disappointed with delayed adoption in the China market and low activity levels at the Weichai-Ballard JV, which weighed on our 2022 results. We are working closely with our Weichai-Ballard JV to unlock growth in the China fuel cell bus and truck markets. Gross margin results partly reflect strategic pricing on customer platform wins during a period of inflationary costs. We expect these dynamics to persist into 2024 until our volume ramps and our product cost reduction initiatives move into production. On costs, we achieved our guided targets for total operating expenses and capital expenditures for full year 2022. We ended the year with $913.7 million in cash reserves." Mr. MacEwen concluded, "In 2023, we believe we are well positioned to compete and grow in an increasingly exciting market. We continue to prudently manage our balance sheet as we execute on our planned investments in technology and products, advanced manufacturing, product cost reduction, our local-for-local manufacturing strategy, and providing an outstanding customer experience." Q4 2022 Financial Highlights(all comparisons are to Q4 2021 unless otherwise noted) Total revenue was $20.5 million in the quarter, down 44% year-over-year. Power Products revenue of $13.5 million decreased 49%, driven by lower shipments of fuel cell products. Heavy-Duty revenues of $9.2 million decreased 59% due to lower shipments of fuel cell products in China and Europe. Stationary Power Generation revenues of $2.7 million decreased 2%, due to lower sales in Europe, partially offset by increased sales in China. Material Handling revenues of $1.6 million increased 23%, primarily as a result of higher shipments to Plug Power. Technology Solutions revenue of $7.0 million decreased 31% due primarily to decreased amounts earned on the Weichai Ballard JV and substantial completion of the Audi program. Gross margin was (29)% in the quarter, a decrease of 42-points, driven by a combination of a greater weight of power products in the revenue mix, pricing strategy, increased investment in manufacturing capacity, increases in supply costs and inventory adjustments. Total Operating Expenses and Cash Operating Costs3 were $37.0 million and $30.6 million, respectively, in the quarter, an increase of 15% and 15%, respectively. Increases were driven primarily by higher expenditure on research, technology and product development activities. Adjusted EBITDA3 was ($46.4) million, compared to ($25.5) million in Q4 2021, primarily a result of the decrease in gross margin and increase in Cash Operating Costs. Ballard received approximately $52.2 million of new orders in Q4, and delivered orders valued at $20.5 million, resulting in an Order Backlog of approximately $133.4 million at end-Q4. Order Backlog growth was driven predominantly by increased orders from Europe, which now represent approximately 64% of the total Order Backlog, compared to approximately 38% at end-Q4 2021. Specifically, the Power Products backlog as of Q4 2022 is more than double the amount in Q4 2021, and is up almost 60% from end-Q3 2022. The 12-month Order Book was $57.3 million at end-Q4, an increase of $6.3 million from the end of Q3 2022. The 12-month Power Products Order Book increased by 37% as compared to end-Q4 2021 and by a similar percentage from the end of Q3 2022. Additionally, order intake in of $52.2 million in Q4 2022 was 124% higher than the 12 month average ending in Q3 2022 of $23.3 million. Order Backlog ($M) Order Backlog at End-Q3 2022 Orders Received in Q4 2022 Orders Delivered in Q4 2022 Order Backlog at End-Q4 2022 Total Fuel CellProducts & Services $101.7 $52.2 $20.5 $133.4   2023 Outlook Consistent with the Company's past practice, and in view of the early stage of hydrogen fuel cell market development and adoption, we are not providing specific revenue or net income (loss) guidance for 2023. In 2023, we continue our plan to invest in the business ahead of the hydrogen growth curve. Ballard's Total Operating Expense4 and Capital Expenditure5 guidance ranges for 2023 are as follows: 2023 Guidance Total Operating Expense4 $135 - $155 million Capital Expenditure5 $40 - $60 million   Q4 2022 Financial Summary (Millions of U.S. dollars)  Three months ended December 31 2022 2021 % Change REVENUE Fuel Cell Products & Services:1,2   Heavy Duty Motive $9.2 $22.5 (59) %   Material Handling $1.6 $1.3 23 %   Stationary Power Generation $2.7 $2.7 (2) %   Sub-Total $13.5 $26.6 (49) %   Technology Solutions $7.0 $10.1 (31) % Total Fuel Cell Products & Services Revenue $20.5 $36.7 (44) % PROFITABILITY Gross Margin $ ($5.9) $4.8 (224) % Gross Margin % (29) % 13 % (42)pts Operating Expenses $37.0 $32.3 15 % Cash Operating Costs3 $30.6 $26.6 15 % Equity loss in JV & Associates ($6.8) ($4.9) 39 % Adjusted EBITDA3 ($46.4) ($25.5) (82) % Net Loss from continuing operations ($34.4) ($43.8) 21 % Loss Per Share ($0.12) ($0.15) (15) % CASH Cash provided by (used in) Operating Activities:.....»»

Generac (GNRC) unveils a new portable solar + battery solution - GS100 Solar Panel - for off - grid charging of the company's portable battery stations. Generac GNRC recently rolled out a new 100W GS100 solar panel solution. The emission-free solution is a fully portable solar + battery solution that can be paired with GB1000 and GB2000 portable power stations for off-grid charging.The solar panel comes with an included cable that can used to connect to the portable power station. It also comes with four units that can be “paralleled” for up to 400W of solar charging power, providing faster charging, noted Generac. Additionally, the solar panel has a tri-fold design and two kickstands, and is both waterproof and dust proof.Generac also unveiled two Generac charge enhancers for its portable power stations, including 200W and 450W options. The 200W charge enhancer is compatible with both the GB1000 and GB2000 stations and can recharge portable power stations up to 25% faster when used in combination with the built-in charger, noted Generac. The 450W charge enhancer is only compatible with the GB2000 station and can recharge up to 50% faster, as per Generac estimates.The new GS100 solar panel is priced at $299.00 and the charge enhancers are priced between $99.95 and $139.00. Both the products are now available through the company’s omni channel sales outlets, which also include prominent home improvement retailers.Generac Holdings Inc. Price and Consensus Generac Holdings Inc. price-consensus-chart | Generac Holdings Inc. QuoteGenerac is a leading manufacturer of power generation equipment, energy storage systems and other power products including portable, residential, commercial and industrial generators.Generac’s performance is being affected by softness in residential products and elevated home standby field inventory levels, which unfavorably impacted orders and shipments. In the last reported quarter, the company’s net sales decreased 2% year over year to $1.05 billion and missed the Zacks Consensus Estimate by 1.8%. Generac expects the trend to continue in 2023 as well and anticipates revenues to decline between 6% and 10%.Also, the shipments of clean energy products were lower than anticipated in the last reported quarter. The company’s margins are affected due to unfavorable effect of the sales mix and rising expenses owing to recent acquisitions.Stiff competition is another headwind. However, the company’s performance is likely to benefit from robust demand for Commercial & Industrial products. Strengthening end-market activity in the home standby category as well and synergies from acquisitions, bode well.At present, GNRC carries a Zacks Rank #3 (Hold).Stocks to ConsiderSome better-ranked stocks in the broader technology space are Arista Networks ANET, Perion Network PERI and Pegasystems PEGA, each presently sporting a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.The Zacks Consensus Estimate for Arista Networks’ 2023 earnings is pegged at $5.79 per share, rising 11.6% in the past 60 days. The long-term earnings growth rate is anticipated to be 14.2%.Arista Networks’ earnings beat the Zacks Consensus Estimate in the last four quarters, the average being 14.2%. Shares of ANET have increased 22% in the past year.The Zacks Consensus Estimate for Perion’s 2023 earnings is pegged at $2.69 per share, rising 16% in the past 60 days. The long-term earnings growth rate is anticipated to be 25%.Perion’s earnings beat the Zacks Consensus Estimate in all the last four quarters, the average being 31.7%. Shares of PERI have increased 60% in the past year.The Zacks Consensus Estimate for Pegasystem’s 2023 earnings is pegged at $1.35 per share, rising 101.5% in the past 60 days.Pegasystem’s earnings beat the Zacks Consensus Estimate in two of the trailing four quarters, the average surprise being 11.2%. Shares of PEGA have declined 41% in the past year. Is THIS the Ultimate New Clean Energy Source? (4 Ways to Profit) The world is increasingly focused on eliminating fossil fuels and ramping up use of renewable, clean energy sources. Hydrogen fuel cells, powered by the most abundant substance in the universe, could provide an unlimited amount of ultra-clean energy for multiple industries.  Our urgent special report reveals 4 hydrogen stocks primed for big gains - plus our other top clean energy stocks.  See Stocks NowWant the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Perion Network Ltd (PERI): Free Stock Analysis Report Pegasystems Inc. (PEGA): Free Stock Analysis Report Generac Holdings Inc. (GNRC): Free Stock Analysis Report Arista Networks, Inc. (ANET): Free Stock Analysis ReportTo read this article on Zacks.com click here.Zacks Investment Research.....»»

NIKE's (NKE) Q3 results are expected to reflect gains from strong demand, compelling products, and robust performance in its digital and DTC businesses, offset by higher costs. NIKE Inc. NKE is slated to release third-quarter fiscal 2023 results on Mar 21. The leading sports apparel retailer is likely to have witnessed top-line growth in the fiscal third quarter, while its earnings per share are expected to have declined year over year.The company has been gaining from its Consumer Direct Acceleration strategy, along with strong demand, compelling products, and robust performance in its digital and DTC businesses. Supply-chain constraints, continued weakness in Greater China and higher costs have been weighing on its performance.The Zacks Consensus Estimate for fiscal third-quarter revenues is pegged at $11.4 billion, suggesting 4.6% growth from the prior-year quarter’s reported figure. The Zacks Consensus Estimate for the company’s fiscal third-quarter earnings is pegged at 51 cents per share, suggesting a decline of 41.4% from the year-ago reported number. Earnings estimates for the fiscal third quarter have moved up by a penny in the past seven days.We expect the company’s fiscal third-quarter total revenues to increase 1.1% year over year to $10,989.8 million and the bottom line to decline 51.1% to 43 cents per share.In the last reported quarter, the company delivered an earnings surprise of 30.8%. Its bottom line beat the consensus estimate by 15.8%, on average, over the trailing four quarters.NIKE, Inc. Price and EPS Surprise  NIKE, Inc. price-eps-surprise | NIKE, Inc. QuoteKey Factors to NoteNIKE is expected to have witnessed continued strong demand for its products, robust performances in its digital and DTC businesses, and its product innovation pipeline in third-quarter fiscal 2023. Gains from its Consumer Direct Acceleration strategy are expected to have been other tailwinds. Continued strength in retail traffic trends within NIKE Direct has been boosting conversion rates. The strong member buying trends are likely to have resulted in record digital results in the to-be-reported quarter.The NIKE Direct business has been benefiting from robust growth across regions and an efficient digital ecosystem, which comprises its online site, as well as commercial and activity apps. Revenues at NIKE-owned stores are expected to have gained from improved traffic, higher conversion rates and growth in average order value. The NIKE Direct business is likely to have benefited from growth in North America, EMEA and APLA, offset by continued weakness in Greater China in the to-be-reported quarter.We expect total NIKE Brand revenues to increase 1.1% year over year to $10,440.9 million in the fiscal third quarter, suggesting a 2.8% decline in Direct-to-Consumer and a 4.7% rise in the Wholesale business.On the last reported quarter’s earnings call, management predicted third-quarter fiscal 2023 revenue growth to be higher than the fourth quarter due to the timing of wholesale shipments.However, NKE has been witnessing a decline in the gross and operating margins due to rising costs, higher markdowns and adverse currency effects.On the last reported quarter’s earnings call, management provided a bleak view for third-quarter fiscal 2023, driven by expectations of higher markdowns, a higher off-price mix to liquidate elevated inventory, headwinds related to elevated freight and logistic costs, and unfavorable currency impacts. For third-quarter fiscal 2023, we expect the gross margin to decline 300 bps year over year to 43.6%. Management predicted the third-quarter fiscal 2023 gross margin to decline at a similar rate to the second quarter of fiscal 2023.NIKE has been reporting elevated SG&A expenses, driven by increased demand creation expenses due to the normalization of sporting activities and overhead costs related to higher wages. Demand-creation expenses are likely to have increased in the fiscal third quarter, owing to elevated marketing and advertising investments. Operating overhead expenses are expected to have resulted from higher wage-related expenses and NIKE Direct costs, as well as increased technology investments to support digital transformation in the to-be-reported quarter.On the last reported quarter’s earnings call, management expected fiscal third-quarter SG&A expenses to be in line with the fiscal second quarter. Our model estimates SG&A expenses of $4,126.3 million, indicating a 20% year-over-year increase.Zacks ModelOur proven model conclusively predicts an earnings beat for NIKE this time around. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the odds of an earnings beat. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.NIKE has an Earnings ESP of +11.11% and a Zacks Rank #2.Other Stocks Poised to Beat Earnings EstimatesHere are some other companies that you may want to consider, as our model shows that these also have the right combination of elements to post an earnings beat:lululemon athletica LULU currently has an Earnings ESP of +1.29% and a Zacks Rank #3. LULU is likely to register top and bottom-line growth when it reports fourth-quarter fiscal 2022 numbers. The Zacks Consensus Estimate for its quarterly revenues is pegged at $2.69 billion, suggesting 26.4% growth from the figure reported in the prior-year quarter.You can see the complete list of today’s Zacks #1 Rank stocks here.The Zacks Consensus Estimate for earnings for lululemon’s fiscal fourth quarter is pegged at $4.25, suggesting an improvement of 26.1% from the year-ago quarter’s reported number. However, the consensus mark for the fiscal fourth quarter has increased by a penny in the past 30 days. LULU has delivered a bottom-line beat of 6.7%, on average, in the trailing four quarters.Whirlpool WHR currently has an Earnings ESP of +24.62% and a Zacks Rank of 3. The company is expected to register top and bottom-line declines when it reports first-quarter 2023 numbers. The Zacks Consensus Estimate for WHR’s quarterly revenues is pegged at $4.5 billion, which suggests a decline of 8.6% from the prior-year quarter’s reported figure.The Zacks Consensus Estimate for Whirlpool’s quarterly earnings has declined 15% in the past 30 days to $1.99 per share. However, the consensus loss estimate suggests a decline of 62.5% from the year-ago quarter’s figure. WHR has delivered an earnings surprise of 4.1%, on average, in the trailing four quarters.Mattel MAT currently has an Earnings ESP of +20.46% and a Zacks Rank #3. MAT is anticipated to register top and bottom-line declines when it reports first-quarter 2023 results. The Zacks Consensus Estimate for its quarterly revenues is pegged at $772.8 million, indicating a decline of 25.8% from the figure reported in the prior-year quarter.The Zacks Consensus Estimate for Mattel’s loss of 9 cents per share has widened by 2 cents in the past 30 days. The consensus loss estimate suggests a significant decline from earnings of 8 cents reported in the prior-year quarter. MAT has delivered an earnings beat of 124.8%, on average, in the trailing four quarters.Stay on top of upcoming earnings announcements with the Zacks Earnings Calendar. Is THIS the Ultimate New Clean Energy Source? (4 Ways to Profit) The world is increasingly focused on eliminating fossil fuels and ramping up use of renewable, clean energy sources. Hydrogen fuel cells, powered by the most abundant substance in the universe, could provide an unlimited amount of ultra-clean energy for multiple industries.  Our urgent special report reveals 4 hydrogen stocks primed for big gains - plus our other top clean energy stocks.  See Stocks NowWant the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report NIKE, Inc. (NKE): Free Stock Analysis Report Mattel, Inc. (MAT): Free Stock Analysis Report Whirlpool Corporation (WHR): Free Stock Analysis Report lululemon athletica inc. (LULU): Free Stock Analysis ReportTo read this article on Zacks.com click here.Zacks Investment Research.....»»

Viasat's (VSAT) Ka-band solutions enable business jet customers to enjoy high-speed Internet connectivity from takeoff to touchdown. Viasat Inc. VSAT has secured a prime contract for Ka-band satellite in-flight connectivity (IFC) solutions from Delta Air Lines for an undisclosed amount. The improved IFC services will aim to offer enhanced Internet capabilities with best-in-class in-flight entertainment options to entice customers and will likely contribute to the uptrend in leisure air travel demand.Per the deal, Delta will use Viasat’s Ka-band IFC solutions in more than 1,000 fleets, including Airbus A330, Airbus 350 and Boeing 767 aircraft. In addition, it will be outfitted in the Airbus 220 and upcoming deliveries of the Boeing 737MAX fleet. The solutions will enable high-quality, high-speed Internet and video streaming services on the personal electronic device of users to make air travel more digitally accessible and seamless.Viasat’s Ka-band solutions enable business jet customers to enjoy high-speed Internet connectivity from takeoff to touchdown. It empowers aviation clients to reinforce their IFC investments and helps customers stay connected with smooth web browsing and streaming services. Equipped with unrivaled speed and quality, Viasat’s Ka-band service has been specifically designed to meet accretive demand for data backed by next-gen business applications. The Ka-band leverages global bandwidth to provide avant-garde Internet service with best-in-market pricing to boost the competitiveness of the business jet market.The surging popularity of high-engagement IFC solutions has compelled leading airline companies to scout for new ways to utilize Viasat’s high-capacity satellite solutions to maximize passenger satisfaction. The company’s impressive bandwidth productivity sets it apart from conventional and lower-yield satellite providers that run on incumbent business models. With an advanced level of Internet connectivity, Delta will offer customers an opportunity to stream all types of video content and seamlessly access Wi-Fi aboard. In addition, it is likely to sow the seeds for future entertainment enhancements and personalization on customer seatback screens.Viasat’s Satellite Services business is progressing well, with key metrics including steady growth of ARPU (average revenue per user) and revenues showing impressive growth. ARPU is growing on the back of a solid retail distribution network, accounting for a rising proportion of high-value and high bandwidth subscriber base. Further, the growing adoption of in-flight Wi-Fi services in commercial aircraft like Delta is benefiting the business.The stock has lost 26.1% over the past year, while the industry has declined 17.2% in the same period. Nevertheless, we are impressed with the inherent growth potential of this Zacks Rank #3 (Hold) stock.Image Source: Zacks Investment ResearchYou can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.Key PicksArista Networks, Inc. ANET, sporting a Zacks Rank #1, is likely to benefit from the strong momentum and diversification across its top verticals and product lines. The company has a software-driven, data-centric approach to help customers build their cloud architecture and enhance their cloud experience. Arista has a long-term earnings growth expectation of 17.5% and delivered an earnings surprise of 12.7%, on average, in the trailing four quarters.It holds a leadership position in 100-gigabit Ethernet switching share in port for the high-speed datacenter segment. Arista is increasingly gaining market traction in 200- and 400-gig high-performance switching products and remains well-positioned for healthy growth in data-driven cloud networking business with proactive platforms and predictive operations.Juniper Networks, Inc. JNPR carries a Zacks Rank #2 (Buy). It has a long-term earnings growth expectation of 7% and delivered an earnings surprise of 1.6%, on average, in the trailing four quarters.Juniper is leveraging the 400-gig cycle to capture hyperscale switching opportunities inside the data center. The company is set to capitalize on the increasing demand for data center virtualization, cloud computing and mobile traffic packet/optical convergence.InterDigital Inc. IDCC, carrying a Zacks Rank #2, is focused on pursuing agreements with unlicensed customers in the handset and consumer electronics markets. The company aims to become a leading designer and developer of technology solutions and innovation for the mobile industry, IoT and allied technology areas by leveraging its research and development capabilities, technological know-how and rich industry experience.InterDigital intends to enhance its licensing revenue base by adding licensees and expanding into adjacent technology areas that align with its intellectual property position. It has a long-term earnings growth expectation of 11.4% and delivered an earnings surprise of 40.3%, on average, in the trailing four quarters. 5 Stocks Set to Double Each was handpicked by a Zacks expert as the #1 favorite stock to gain +100% or more in 2021. Previous recommendations have soared +143.0%, +175.9%, +498.3% and +673.0%. Most of the stocks in this report are flying under Wall Street radar, which provides a great opportunity to get in on the ground floor.Today, See These 5 Potential Home Runs >>Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Juniper Networks, Inc. (JNPR): Free Stock Analysis Report InterDigital, Inc. (IDCC): Free Stock Analysis Report Viasat Inc. (VSAT): Free Stock Analysis Report Arista Networks, Inc. (ANET): Free Stock Analysis ReportTo read this article on Zacks.com click here.Zacks Investment Research.....»»

Allegion (ALLE) is well positioned to outperform the market, as it exhibits above-average growth in financials. Growth stocks are attractive to many investors, as above-average financial growth helps these stocks easily grab the market's attention and produce exceptional returns. However, it isn't easy to find a great growth stock.In addition to volatility, these stocks carry above-average risk by their very nature. Also, one could end up losing from a stock whose growth story is actually over or nearing its end.However, it's pretty easy to find cutting-edge growth stocks with the help of the Zacks Growth Style Score (part of the Zacks Style Scores system), which looks beyond the traditional growth attributes to analyze a company's real growth prospects.Allegion (ALLE) is one such stock that our proprietary system currently recommends. The company not only has a favorable Growth Score, but also carries a top Zacks Rank.Research shows that stocks carrying the best growth features consistently beat the market. And returns are even better for stocks that possess the combination of a Growth Score of A or B and a Zacks Rank #1 (Strong Buy) or 2 (Buy).While there are numerous reasons why the stock of this security device maker is a great growth pick right now, we have highlighted three of the most important factors below:Earnings GrowthEarnings growth is arguably the most important factor, as stocks exhibiting exceptionally surging profit levels tend to attract the attention of most investors. And for growth investors, double-digit earnings growth is definitely preferable, and often an indication of strong prospects (and stock price gains) for the company under consideration.While the historical EPS growth rate for Allegion is 5.8%, investors should actually focus on the projected growth. The company's EPS is expected to grow 11.8% this year, crushing the industry average, which calls for EPS growth of 10.7%.Impressive Asset Utilization RatioGrowth investors often overlook asset utilization ratio, also known as sales-to-total-assets (S/TA) ratio, but it is an important feature of a real growth stock. This metric exhibits how efficiently a firm is utilizing its assets to generate sales.Right now, Allegion has an S/TA ratio of 0.9, which means that the company gets $0.9 in sales for each dollar in assets. Comparing this to the industry average of 0.65, it can be said that the company is more efficient.While the level of efficiency in generating sales matters a lot, so does the sales growth of a company. And Allegion is well positioned from a sales growth perspective too. The company's sales are expected to grow 8.9% this year versus the industry average of 5.9%.Promising Earnings Estimate RevisionsBeyond the metrics outlined above, investors should consider the trend in earnings estimate revisions. A positive trend is a plus here. Empirical research shows that there is a strong correlation between trends in earnings estimate revisions and near-term stock price movements.There have been upward revisions in current-year earnings estimates for Allegion. The Zacks Consensus Estimate for the current year has surged 3.9% over the past month.Bottom LineWhile the overall earnings estimate revisions have made Allegion a Zacks Rank #2 stock, it has earned itself a Growth Score of B based on a number of factors, including the ones discussed above.You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here.This combination indicates that Allegion is a potential outperformer and a solid choice for growth investors. Free Report: Must-See Hydrogen Stocks Hydrogen fuel cells are already used to provide efficient, ultra-clean energy to buses, ships and even hospitals. This technology is on the verge of a massive breakthrough, one that could make hydrogen a major source of America's power. It could even totally revolutionize the EV industry. Zacks has released a special report revealing the 4 stocks experts believe will deliver the biggest gains.Download Cashing In on Cleaner Energy today, absolutely free.Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Allegion PLC (ALLE): Free Stock Analysis ReportTo read this article on Zacks.com click here.Zacks Investment Research.....»»

Oneok (OKE) possesses solid growth attributes, which could help it handily outperform the market. Growth investors focus on stocks that are seeing above-average financial growth, as this feature helps these securities garner the market's attention and deliver solid returns. However, it isn't easy to find a great growth stock.By their very nature, these stocks carry above-average risk and volatility. Moreover, if a company's growth story is over or nearing its end, betting on it could lead to significant loss.However, it's pretty easy to find cutting-edge growth stocks with the help of the Zacks Growth Style Score (part of the Zacks Style Scores system), which looks beyond the traditional growth attributes to analyze a company's real growth prospects.Oneok Inc. (OKE) is on the list of such stocks currently recommended by our proprietary system. In addition to a favorable Growth Score, it carries a top Zacks Rank.Studies have shown that stocks with the best growth features consistently outperform the market. And for stocks that have a combination of a Growth Score of A or B and a Zacks Rank #1 (Strong Buy) or 2 (Buy), returns are even better.While there are numerous reasons why the stock of this natural gas company is a great growth pick right now, we have highlighted three of the most important factors below:Earnings GrowthEarnings growth is arguably the most important factor, as stocks exhibiting exceptionally surging profit levels tend to attract the attention of most investors. For growth investors, double-digit earnings growth is highly preferable, as it is often perceived as an indication of strong prospects (and stock price gains) for the company under consideration.While the historical EPS growth rate for Oneok is 9%, investors should actually focus on the projected growth. The company's EPS is expected to grow 41.4% this year, crushing the industry average, which calls for EPS growth of 5.6%.Cash Flow GrowthWhile cash is the lifeblood of any business, higher-than-average cash flow growth is more important and beneficial for growth-oriented companies than for mature companies. That's because, growth in cash flow enables these companies to expand their businesses without depending on expensive outside funds.Right now, year-over-year cash flow growth for Oneok is 10.6%, which is higher than many of its peers. In fact, the rate compares to the industry average of 8.9%.While investors should actually consider the current cash flow growth, it's worth taking a look at the historical rate too for putting the current reading into proper perspective. The company's annualized cash flow growth rate has been 20.2% over the past 3-5 years versus the industry average of 11.3%.Promising Earnings Estimate RevisionsSuperiority of a stock in terms of the metrics outlined above can be further validated by looking at the trend in earnings estimate revisions. A positive trend is of course favorable here. Empirical research shows that there is a strong correlation between trends in earnings estimate revisions and near-term stock price movements.There have been upward revisions in current-year earnings estimates for Oneok. The Zacks Consensus Estimate for the current year has surged 11.9% over the past month.Bottom LineOneok has not only earned a Growth Score of A based on a number of factors, including the ones discussed above, but it also carries a Zacks Rank #2 because of the positive earnings estimate revisions.You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here.This combination indicates that Oneok is a potential outperformer and a solid choice for growth investors. Free Report: Must-See Hydrogen Stocks Hydrogen fuel cells are already used to provide efficient, ultra-clean energy to buses, ships and even hospitals. This technology is on the verge of a massive breakthrough, one that could make hydrogen a major source of America's power. It could even totally revolutionize the EV industry. Zacks has released a special report revealing the 4 stocks experts believe will deliver the biggest gains.Download Cashing In on Cleaner Energy today, absolutely free.Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report ONEOK, Inc. (OKE): Free Stock Analysis ReportTo read this article on Zacks.com click here.Zacks Investment Research.....»»

The investigation related to the current NHP supply situation is likely to result in study delays in Charles River's (CRL) Safety Assessment business. Charles River CRL is currently entangled in an investigation related to shipments of nonhuman primate (NHP) received from its Cambodian supplier. The global business environment continues to be challenging. The stock carries a Zacks Rank #4 (Sell).Over the past year, Charles River has been underperforming its industry. The stock has declined 19.4% compared with the industry’s 13.7% plunge.On Feb 17, Charles River received a subpoena from the U.S. Department of Justice related to this. Based on the ongoing investigations and a heightened focus on the Cambodia NHP supply chain, in recent months, the company had to voluntarily suspend its planned future shipments of Cambodian NHPs. This will continue until the point when the U.S. Fish and Wildlife Service can develop and implement new procedures to reinforce confidence that the NHPs it imports from Cambodia are purpose-bred. This will take time to implement. The investigation of the current NHP supply situation will result in study delays in the company’s Safety Assessment business. This might majorly impact the upcoming quarterly performance of Charles River.Charles River Laboratories International, Inc. Price Charles River Laboratories International, Inc. price | Charles River Laboratories International, Inc. QuoteMeanwhile, the company noted that the current Cambodian NHP supply constraints and the corresponding impact on its Safety Assessment business are expected to reduce the consolidated revenue growth forecast by approximately 200 basis points to 400 basis points for 2023, resulting in organic revenue growth guidance of 4.5% to 7.5% for the total business. Non-GAAP earnings per share are expected to be in the range of $9.70 to $10.90 in 2023 with the wider range encompassing a number of scenarios related to the timing of the resumption of Cambodian NHP imports in 2023.Meanwhile, in the fourth quarter, within the Research Models and Services (RMS) business, China experienced a modest impact from an increase in COVID cases. Headwinds associated with escalating macroeconomic pressures and foreign exchange due to the strengthening of the U.S. dollar and interest expense due to a rising interest rate environment increase concerns. Margin contractions in the face of mounting costs and expenses are other downsides.Foreign exchange is a major headwind for Charles River due to a considerable percentage of its revenues coming from outside the United States. The strengthening of the euro and some other developed market currencies has constantly been hampering the company’s performance in the international markets. We note that foreign exchange had a 350-basis point headwind in 2022.On a positive note, Charles River exited the fourth quarter of 2022 with better-than-expected earnings and revenues. The company reported record quarterly revenues of $1.1 billion in the quarter, exceeding the $1 billion mark for the first time. The results highlighted 18.8% organic revenue growth, driven by strength across the Discovery and Safety Assessment (DSA) and RMS business segments. The company registered robust demand in the Safety Assessment business. In the second half, DSA's organic growth rate rose to 23.6% as the company exceeded the second-half growth acceleration that it had forecast since the beginning of 2022.Charles River broadens the scope of the products and services across the drug discovery and early-stage development continuum through focused acquisitions. Within RMS, the company acquired Explora Biolabs in April 2022.Key PicksSome better-ranked stocks in the overall healthcare sector include Haemonetics Corporation HAE, TerrAscend Corp. TRSSF and Akerna Corp. KERN. Haemonetics and TerrAscend both sport a Zacks Rank #1 (Strong Buy), while Akerna carries a Zack Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.Haemonetics’ stock has risen 42.1% in the past year. Earnings estimates for Haemonetics have increased from $2.87 per share to 2.91 for 2023 and from $3.02 per share to $3.28 for 2024 in the past 30 days.HAE’s earnings beat estimates in each of the last four quarters, delivering an average surprise of 10.98%. In the last reported quarter, it reported an earnings surprise of 7.59%.Estimates for TerrAscend in 2023 have remained constant at a loss of 10 cents per share in the past 30 days. Shares of TerrAscend have declined 70.6% in the past year.TerrAscend’s earnings beat estimates in one of the last three quarters and missed the mark in the other two, the average negative surprise being 136.11%. In the last reported quarter, TRSSF delivered an earnings surprise of 216.67%.Akerna’s stock has declined 95.7% in the past year. Its estimates for 2023 have remained constant at a loss of $1.91 per share over the past 30 days.Akerna missed earnings estimates in each of the last four quarters, delivering a negative earnings surprise of 15.49%, on average. In the last reported quarter, KERN delivered a negative earnings surprise of 13.33%. Free Report Reveals How You Could Profit from the Growing Electric Vehicle Industry Globally, electric car sales continue their remarkable growth even after breaking records in 2021. High gas prices have fueled his demand, but so has evolving EV comfort, features and technology. So, the fervor for EVs will be around long after gas prices normalize. Not only are manufacturers seeing record-high profits, but producers of EV-related technology are raking in the dough as well. Do you know how to cash in?  If not, we have the perfect report for you – and it’s FREE! Today, don't miss your chance to download Zacks' top 5 stocks for the electric vehicle revolution at no cost and with no obligation.>>Send me my free report on the top 5 EV stocksWant the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Haemonetics Corporation (HAE): Free Stock Analysis Report Charles River Laboratories International, Inc. (CRL): Free Stock Analysis Report Akerna Corp. (KERN): Free Stock Analysis Report TerrAscend Corp. (TRSSF): Free Stock Analysis ReportTo read this article on Zacks.com click here.Zacks Investment Research.....»»

Old Dominion (ODFL) fourth-quarter 2022 revenues benefit from an increase in less-than-truckload revenue per hundredweight. Old Dominion Freight Line, Inc. ODFL is benefiting from the strong performance of the less-than-truckload (LTL) segment. The company’s measures to reward its shareholders are encouraging.Against this backdrop, let’s look at the factors that make this stock an attractive pick.What Makes Old Dominion an Attractive Pick?An Outperformer: A glimpse at the company’s price trend reveals that the stock has had an impressive run on the bourse over the past six months. Shares of Old Dominion have gained 29.5% over the past six months, outperforming the 14.9% rise of the industry it belongs to.Image Source: Zacks Investment ResearchSolid Rank & VGM Score: Old Dominion currently carries a Zacks Rank #2 (Buy) and has a VGM Score of B. Our research shows that stocks with a VGM Score of A or B, when combined with a Zacks Rank #1 (Strong Buy) or 2, offer the best investment opportunities. Thus, the company seems to be an appropriate investment proposition at the moment. You can see the complete list of today’s Zacks #1 Rank stocks here.Northward Estimate Revisions:The direction of estimate revisions serves as an important pointer when it comes to the price of a stock. Over the past 90 days, the Zacks Consensus Estimate for Old Dominion’s first-quarter 2023 earnings has moved up 3.4% year over year. For 2023 and 2024, the company’s earnings are expected to increase 4.1% and 3.4%, year over year, respectively. Positive Earnings Surprise History: Old Dominion has an impressive earnings surprise history. The company delivered an earnings surprise of 8.73% in the last four quarters, on average.Earnings Expectations: Earnings growth and stock price gains often indicate a company’s prospects. For first-quarter 2023, Old Dominion’s earnings are expected to grow 4.2% year over year.Growth Factors: Old Dominion is benefiting from the strong performance of the LTL segment owing to improved freight conditions. In 2022, segmental revenues increased 19.3%. In 2022, LTL shipments and LTL revenue per shipment increased 0.8% and 18.3%, respectively. Further, ODFL’s efforts to add shareholder value are impressive. In 2022, ODFL paid dividends of $134.48 million and repurchased shares worth $1,277.21 million. ODFL’s board has raised its quarterly cash dividend by 33.3% to 40 cents per share, effective from the first quarter of 2023.Improvement in the operating ratio (operating expenses as a percentage of revenues), owing to higher revenues, is encouraging. With improved freight market conditions, a rise in LTL shipments is driving the top line.Other Stocks to ConsiderSome other top-ranked stocks from the broader Zacks Transportation sector are Copa Holdings, S.A. CPA, Alaska Air Group, Inc. ALK and American Airlines AAL. Copa Holdings presently sports a Zacks Rank #1, while Alaska Air and American Airlines currently carry a Zacks Rank #2.Copa Holdings has an expected earnings growth rate of 39.83% for the current year. CPA delivered a trailing four-quarter earnings surprise of 33.35%, on average.The Zacks Consensus Estimate for CPA’s current-year earnings has improved 21.1% over the past 90 days. Shares of CPA have soared 13.3% over the past three months.Alaska Air has an expected earnings growth rate of 32.64% for the current year. ALK delivered a trailing four-quarter earnings surprise of 8.98%, on average.The Zacks Consensus Estimate for ALK’s current-year earnings has improved 11.4% over the past 90 days. Shares of ALK have soared 0.8% over the past three months.AAL has an expected earnings growth rate of more than 100% for the current year. AAL delivered a trailing four-quarter earnings surprise of 7.79%, on average.The Zacks Consensus Estimate for AAL’s current-year earnings has improved 31.1% over the past 90 days. Shares of AAL have gained 15.8% over the past three months. Free Report Reveals How You Could Profit from the Growing Electric Vehicle Industry Globally, electric car sales continue their remarkable growth even after breaking records in 2021. High gas prices have fueled his demand, but so has evolving EV comfort, features and technology. So, the fervor for EVs will be around long after gas prices normalize. Not only are manufacturers seeing record-high profits, but producers of EV-related technology are raking in the dough as well. Do you know how to cash in?  If not, we have the perfect report for you – and it’s FREE! Today, don't miss your chance to download Zacks' top 5 stocks for the electric vehicle revolution at no cost and with no obligation.>>Send me my free report on the top 5 EV stocksWant the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Old Dominion Freight Line, Inc. (ODFL): Free Stock Analysis Report Copa Holdings, S.A. (CPA): Free Stock Analysis Report American Airlines Group Inc. (AAL): Free Stock Analysis Report Alaska Air Group, Inc. (ALK): Free Stock Analysis ReportTo read this article on Zacks.com click here.Zacks Investment Research.....»»

Kinsale Capital Group, Inc. (KNSL) is well positioned to outperform the market, as it exhibits above-average growth in financials. Growth stocks are attractive to many investors, as above-average financial growth helps these stocks easily grab the market's attention and produce exceptional returns. However, it isn't easy to find a great growth stock.That's because, these stocks usually carry above-average risk and volatility. In fact, betting on a stock for which the growth story is actually over or nearing its end could lead to significant loss.However, the task of finding cutting-edge growth stocks is made easy with the help of the Zacks Growth Style Score (part of the Zacks Style Scores system), which looks beyond the traditional growth attributes to analyze a company's real growth prospects.Kinsale Capital Group, Inc. (KNSL) is on the list of such stocks currently recommended by our proprietary system. In addition to a favorable Growth Score, it carries a top Zacks Rank.Research shows that stocks carrying the best growth features consistently beat the market. And for stocks that have a combination of a Growth Score of A or B and a Zacks Rank #1 (Strong Buy) or 2 (Buy), returns are even better.Here are three of the most important factors that make the stock of this company a great growth pick right now.Earnings GrowthArguably nothing is more important than earnings growth, as surging profit levels is what most investors are after. For growth investors, double-digit earnings growth is highly preferable, as it is often perceived as an indication of strong prospects (and stock price gains) for the company under consideration.While the historical EPS growth rate for Kinsale Capital Group, Inc. is 45%, investors should actually focus on the projected growth. The company's EPS is expected to grow 26.3% this year, crushing the industry average, which calls for EPS growth of 25.9%.Cash Flow GrowthCash is the lifeblood of any business, but higher-than-average cash flow growth is more beneficial and important for growth-oriented companies than for mature companies. That's because, high cash accumulation enables these companies to undertake new projects without raising expensive outside funds.Right now, year-over-year cash flow growth for Kinsale Capital Group, Inc. is 35.9%, which is higher than many of its peers. In fact, the rate compares to the industry average of -10.1%.While investors should actually consider the current cash flow growth, it's worth taking a look at the historical rate too for putting the current reading into proper perspective. The company's annualized cash flow growth rate has been 46.3% over the past 3-5 years versus the industry average of 9%.Promising Earnings Estimate RevisionsSuperiority of a stock in terms of the metrics outlined above can be further validated by looking at the trend in earnings estimate revisions. A positive trend is of course favorable here. Empirical research shows that there is a strong correlation between trends in earnings estimate revisions and near-term stock price movements.The current-year earnings estimates for Kinsale Capital Group, Inc. have been revising upward. The Zacks Consensus Estimate for the current year has surged 9.7% over the past month.Bottom LineWhile the overall earnings estimate revisions have made Kinsale Capital Group, Inc. a Zacks Rank #1 stock, it has earned itself a Growth Score of B based on a number of factors, including the ones discussed above.You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here.This combination positions Kinsale Capital Group, Inc. well for outperformance, so growth investors may want to bet on it. Free Report Reveals How You Could Profit from the Growing Electric Vehicle Industry Globally, electric car sales continue their remarkable growth even after breaking records in 2021. High gas prices have fueled his demand, but so has evolving EV comfort, features and technology. So, the fervor for EVs will be around long after gas prices normalize. Not only are manufacturers seeing record-high profits, but producers of EV-related technology are raking in the dough as well. Do you know how to cash in?  If not, we have the perfect report for you – and it’s FREE! Today, don't miss your chance to download Zacks' top 5 stocks for the electric vehicle revolution at no cost and with no obligation.>>Send me my free report on the top 5 EV stocksWant the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Kinsale Capital Group, Inc. (KNSL): Free Stock Analysis ReportTo read this article on Zacks.com click here.Zacks Investment Research.....»»

SPS Commerce (SPSC) is well positioned to outperform the market, as it exhibits above-average growth in financials. Growth stocks are attractive to many investors, as above-average financial growth helps these stocks easily grab the market's attention and produce exceptional returns. However, it isn't easy to find a great growth stock.That's because, these stocks usually carry above-average risk and volatility. In fact, betting on a stock for which the growth story is actually over or nearing its end could lead to significant loss.However, the task of finding cutting-edge growth stocks is made easy with the help of the Zacks Growth Style Score (part of the Zacks Style Scores system), which looks beyond the traditional growth attributes to analyze a company's real growth prospects.SPS Commerce (SPSC) is on the list of such stocks currently recommended by our proprietary system. In addition to a favorable Growth Score, it carries a top Zacks Rank.Research shows that stocks carrying the best growth features consistently beat the market. And for stocks that have a combination of a Growth Score of A or B and a Zacks Rank #1 (Strong Buy) or 2 (Buy), returns are even better.Here are three of the most important factors that make the stock of this provider of supply chain software services to businesses a great growth pick right now.Earnings GrowthArguably nothing is more important than earnings growth, as surging profit levels is what most investors are after. For growth investors, double-digit earnings growth is highly preferable, as it is often perceived as an indication of strong prospects (and stock price gains) for the company under consideration.While the historical EPS growth rate for SPS Commerce is 35.1%, investors should actually focus on the projected growth. The company's EPS is expected to grow 13.2% this year, crushing the industry average, which calls for EPS growth of 12.9%.Cash Flow GrowthCash is the lifeblood of any business, but higher-than-average cash flow growth is more beneficial and important for growth-oriented companies than for mature companies. That's because, high cash accumulation enables these companies to undertake new projects without raising expensive outside funds.Right now, year-over-year cash flow growth for SPS Commerce is 21%, which is higher than many of its peers. In fact, the rate compares to the industry average of 3.4%.While investors should actually consider the current cash flow growth, it's worth taking a look at the historical rate too for putting the current reading into proper perspective. The company's annualized cash flow growth rate has been 37% over the past 3-5 years versus the industry average of 7.3%.Promising Earnings Estimate RevisionsSuperiority of a stock in terms of the metrics outlined above can be further validated by looking at the trend in earnings estimate revisions. A positive trend is of course favorable here. Empirical research shows that there is a strong correlation between trends in earnings estimate revisions and near-term stock price movements.The current-year earnings estimates for SPS Commerce have been revising upward. The Zacks Consensus Estimate for the current year has surged 5.1% over the past month.Bottom LineWhile the overall earnings estimate revisions have made SPS Commerce a Zacks Rank #1 stock, it has earned itself a Growth Score of A based on a number of factors, including the ones discussed above.You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here.This combination positions SPS Commerce well for outperformance, so growth investors may want to bet on it. Free Report Reveals How You Could Profit from the Growing Electric Vehicle Industry Globally, electric car sales continue their remarkable growth even after breaking records in 2021. High gas prices have fueled his demand, but so has evolving EV comfort, features and technology. So, the fervor for EVs will be around long after gas prices normalize. Not only are manufacturers seeing record-high profits, but producers of EV-related technology are raking in the dough as well. Do you know how to cash in?  If not, we have the perfect report for you – and it’s FREE! Today, don't miss your chance to download Zacks' top 5 stocks for the electric vehicle revolution at no cost and with no obligation.>>Send me my free report on the top 5 EV stocksWant the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report SPS Commerce, Inc. (SPSC): Free Stock Analysis ReportTo read this article on Zacks.com click here.Zacks Investment Research.....»»

Global Ship Lease (GSL) could produce exceptional returns because of its solid growth attributes. Investors seek growth stocks to capitalize on above-average growth in financials that help these securities grab the market's attention and produce exceptional returns. However, it isn't easy to find a great growth stock.By their very nature, these stocks carry above-average risk and volatility. Moreover, if a company's growth story is over or nearing its end, betting on it could lead to significant loss.However, the Zacks Growth Style Score (part of the Zacks Style Scores system), which looks beyond the traditional growth attributes to analyze a company's real growth prospects, makes it pretty easy to find cutting-edge growth stocks.Our proprietary system currently recommends Global Ship Lease (GSL) as one such stock. This company not only has a favorable Growth Score, but also carries a top Zacks Rank.Studies have shown that stocks with the best growth features consistently outperform the market. And returns are even better for stocks that possess the combination of a Growth Score of A or B and a Zacks Rank #1 (Strong Buy) or 2 (Buy).While there are numerous reasons why the stock of this containership owner is a great growth pick right now, we have highlighted three of the most important factors below:Earnings GrowthEarnings growth is arguably the most important factor, as stocks exhibiting exceptionally surging profit levels tend to attract the attention of most investors. And for growth investors, double-digit earnings growth is definitely preferable, and often an indication of strong prospects (and stock price gains) for the company under consideration.While the historical EPS growth rate for Global Ship Lease is 28.5%, investors should actually focus on the projected growth. The company's EPS is expected to grow 4.4% this year, crushing the industry average, which calls for EPS growth of -17.5%.Cash Flow GrowthWhile cash is the lifeblood of any business, higher-than-average cash flow growth is more important and beneficial for growth-oriented companies than for mature companies. That's because, growth in cash flow enables these companies to expand their businesses without depending on expensive outside funds.Right now, year-over-year cash flow growth for Global Ship Lease is 70.3%, which is higher than many of its peers. In fact, the rate compares to the industry average of 40.8%.While investors should actually consider the current cash flow growth, it's worth taking a look at the historical rate too for putting the current reading into proper perspective. The company's annualized cash flow growth rate has been 38.9% over the past 3-5 years versus the industry average of 30.5%.Promising Earnings Estimate RevisionsBeyond the metrics outlined above, investors should consider the trend in earnings estimate revisions. A positive trend is a plus here. Empirical research shows that there is a strong correlation between trends in earnings estimate revisions and near-term stock price movements.The current-year earnings estimates for Global Ship Lease have been revising upward. The Zacks Consensus Estimate for the current year has surged 5.1% over the past month.Bottom LineGlobal Ship Lease has not only earned a Growth Score of A based on a number of factors, including the ones discussed above, but it also carries a Zacks Rank #2 because of the positive earnings estimate revisions.You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here.This combination indicates that Global Ship Lease is a potential outperformer and a solid choice for growth investors. Free Report Reveals How You Could Profit from the Growing Electric Vehicle Industry Globally, electric car sales continue their remarkable growth even after breaking records in 2021. High gas prices have fueled his demand, but so has evolving EV comfort, features and technology. So, the fervor for EVs will be around long after gas prices normalize. Not only are manufacturers seeing record-high profits, but producers of EV-related technology are raking in the dough as well. Do you know how to cash in?  If not, we have the perfect report for you – and it’s FREE! Today, don't miss your chance to download Zacks' top 5 stocks for the electric vehicle revolution at no cost and with no obligation.>>Send me my free report on the top 5 EV stocksWant the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Global Ship Lease, Inc. (GSL): Free Stock Analysis ReportTo read this article on Zacks.com click here.Zacks Investment Research.....»»

Authorities swooped in to guarantee SVB's deposits. Now experts are bracing for more bank runs. AP Photo/Benjamin Fanjoy Silicon Valley Bank's collapse last week has created a great deal of fallout. Warren Buffett may be buying the dip in regional bank stocks, Bill Ackman says. Lloyd Blankfein, Bill Ackman, and Michael Burry have all weighed in on the fiasco rocking markets. We're live as Silicon Valley Bank's collapse continues to rattle investors and stoke fears of further bank runs and financial catastrophe.The US Treasury, Federal Reserve, and the Federal Deposit Insurance Corp. helped assuage those worries on Sunday by announcing deposits at the country's 16th-largest bank would be guaranteed, and the bank's customers would have access to all of their money on Monday. The FDIC took control of SVB on Friday, while the Fed plans to offer loans to banks and other deposit holders in case they face a wave of withdrawals.Some experts have celebrated the intervention as necessary to prevent a crisis. Others have warned it could encourage banks to be more reckless, and SVB might be the first of several institutions to fail.President Biden has reassured Americans that their deposits are safe, taxpayers won't foot the bill for bank losses, and he plans to rein in the banking sector to avoid future crises. Meanwhile, Warren Buffett might be buying the dip in regional bank stocks, Bill Ackman has said.Follow along for the latest developments, analysis of what it all means, and what the likes of Lloyd Blankfein, Bill Ackman, Michael Burry, Mark Cuban, Paul Krugman, and Elon Musk are saying.Why the implosion of Silicon Valley Bank is actually a good thing for stocksThe implosions of Silicon Valley Bank, Silvergate Capital, and Signature Bank in recent days might make for scary headlines. But they could actually be bullish developments for stock investors.That's because the Federal Reserve may be forced to slow the pace of rate hikes it's been enacting since March 2022. It would be welcome news for investors who have felt the pain of tighter financial conditions as stocks have limped to a weak start this year.It would also help alleviate the very pressure that led to the collapse of these institutions. After all, the rising-interest-rate environment is what put the firms in such a precarious situation to begin with, as risk-free government bonds started yielding more than their debt. Customers pulled money and fled to greener pastures, and the panicked situation eventually snowballed into a series of bank runs.Read the full story here.It's crystal clear now: More banks are going to failThe dust is still settling following the collapse of Silicon Valley Bank, but there's one thing that's clear: more banks are probably going to fail.SVB's operations were shuttered on Friday by state regulators, and Signature Bank was closed down shortly after. While market commentators say the failures don't mark a Lehman-style crisis, more bearish prognosticators say the risk of contagion across the banking industry remains high.In an interview with Politico on Sunday, former Federal Deposit Insurance Corporation chairman William Issac said more banks are bound to collapse, and markets could be on the precipice of another 1980s-style banking crisis."There's no doubt in my mind: There's going to be more. How many more? I don't know," Issac said, comparing the situation to the banking crises of the 1980s and 1990s, when the FDIC dealt with the failure of over 1,600 banks.Read the full story here.Bill Ackman says regional bank stocks are at bargain prices, and Warren Buffett may be loading up right nowBill Ackman has touted regional bank stocks as a great deal for investors right now, and suggested Warren Buffett may be scooping them up as we speak."Regional bank stocks are an incredible bargain now as long as the gov't does the right thing, and I am confident it will," the billionaire investor and Pershing Square boss tweeted on Monday. He was referring to the FDIC explicitly guaranteeing all bank deposits to restore faith in the banking system."I would be surprised if Warren isn't putting capital to work in his favorite regional banks now," Ackman added.Buffett's Berkshire Hathaway counted several banks among its holdings at the end of December, including Bank of America, Bank of New York Mellon, Citigroup, US Bancorp, and Ally Financial.—Bill Ackman (@BillAckman) March 13, 2023 Jim Chanos warns the worst may be yet to comeJim Chanos warned investors in a Monday tweet that there's likely more pain ahead.The short seller — who helped uncover fraud at Enron and other companies — noted the S&P 500 has only dipped in recent days, speculative assets such as cryptocurrencies are jumping, and the Fed may be about to halt its rate hikes or even start cutting.—Diogenes (@WallStCynic) March 13, 2023 Lloyd Blankfein only sees a few banks blowing up like SBVLloyd Blankfein doesn't expect many banks to go up in flames like SBV, and sees some positives for investors.The senior chairman and former CEO of Goldman Sachs noted in a Monday tweet that the FDIC insuring bank deposits limits the need for people to withdraw their cash in a hurry. He also pointed out that the nation's biggest banks are strictly regulated and tested.Moreover, Blankfein said downward pressure on rates, and the likelihood the Fed holds off on hiking interest rates any higher after a string of bank collapses, could boost asset prices.—Lloyd Blankfein (@lloydblankfein) March 13, 2023 "Pennies in front of a steamroller"Larry McDonald has castigated SVB for buying long-dated bonds despite holding large amounts of uninsured deposits, leaving it vulnerable to running short of cash if withdrawals spiked.—Lawrence McDonald (@Convertbond) March 13, 2023—Lawrence McDonald (@Convertbond) March 13, 2023 The founder of "The Bear Trap Report" also blasted Wall Street for overlooking the risk of regional banks collapsing, and called out the Fed for likely holding off on another 50-basis-pint hike to interest rates this month."The lesson here is a) the entire Street missed this regional bank credit risk fiasco, near disaster. And b) when the Fed looked under the hood, they saw something that freighted them into another embarrassing pivot," McDonald tweeted.The former Lehman Brothers trader — and author of a book about the bank's collapse at the start of the financial crisis — noted the Fed is saving bank deposits at a period when the economy is in running hot, with around 3% unemployment and nearly 7% inflation."Well, the Fed couldn't kill inflation but they were successful at putting three banks in the grave so far," he said.Mark Cuban warns financial stocks could plungeFinancial stocks could tumble as investors pull their cash out of funds after losing money in the SVB and Signature fiascos, Mark Cuban suggested on Monday.The funds may have to sell shares to cover those withdrawals, driving down stock prices, the tech billionaire and "Shark Tank" investor said. He was replying to a tweet by Mohamed El-Erian noting that US and European bank stocks were in the red.—Mark Cuban (@mcuban) March 13, 2023 US financial stocks tumbleUS financial stocks slumped in early trading on Monday. As of 10:12 a.m. ET, First Republic was down 67%, Comerica was down 45%, KeyCorp was down 26%, Truist America was down 18%, Charles Schwab was down 14%, and Bank of America was down 5%.The major US stock indices were mixed. The S&P 500 was down 0.2%, while the Nasdaq and Dow Jones Industrial Average were flat.Key European stock markets were trading in the red. Germany's DAX was down 2.8%, Britain's FTSE 100 was down 2.0%, and the Euro Stoxx 50 was down 3.0%.—Brandon Van Zee (@BrandonVanZee) March 13, 2023  Mohamed El-Erian warns volatility could put stress on the banking systemMohamed El-Erian has flagged a worrying spike then plunge in the yield on 2-year Treasuries over the past week.The leading economist warned that kind of volatility can put strain on the financial system.—Mohamed A. El-Erian (@elerianm) March 13, 2023 President Biden says US banks are safe, and taxpayers won't foot the bill for SVB's mistakesAmericans' money is secure in US banks, and taxpayers won't pay for SVB's mistakes, President Biden said in a Monday speech."You can have confidence that the banking system is safe," he said. "Your deposits will be there when you need them.""No losses will be borne by the taxpayers," Biden added.He also said those responsible for SVB and Signature Bank's failures would be held responsible, and his administration would take steps to avoid similar fiascos in the future.Moreover, Biden emphasized that investors wouldn't be made whole, as they took the risk of losing their money when they bought into SVB and Signature."Investors in the banks will not be protected — they knowingly took a risk, and when the risk didn't pay off, investors lose their money," he said. "That's how capitalism works." Blame SVB's failure on Silicon Valley's greed and a broken banking system, Keith Fitz-Gerald saysSVB's collapse is a product of wider greed in Silicon Valley, and a broken system that lets banks take too many risks with limited oversight, Keith Fitz-Gerald told CNBC on Monday."With regard to who's to blame here, I think that the greed and avarice that has long been present in Silicon Valley has come home to roost," the trader and principal of the Fitz-Gerald Group told the business-news channel.Fitz-Gerald questioned whether banks like SVB should be allowed to invest their deposits, instead of simply lending money and collecting interest."My contention is banking should be boring, a lot like watching paint dry — and any time it's not, you've got a problem," he said."It's the system that's broken, or at least needs to be seriously reviewed here," Fitz-Gerald continued. "Where were the regulators? Where were the auditors?"Cathie Wood warns of more bank collapses if the Fed doesn't cut ratesCathie Wood said in a Monday tweet that many banks joined SBV in parking their excess cash in long-duration bonds, as they didn't expect the Fed to hike rates by more than 4 percentage points over the past year.The technology investor and Ark Invest chief warned that if the Fed doesn't begin cutting interest rates, more regional banks will collapse and the US banking system will become more consolidated and publicly controlled.—Cathie Wood (@CathieDWood) March 13, 2023Wood also seized the chance to tout cryptocurrencies and the wider blockchain ecosystem as safer and less opaque than conventional banks. Bitcoin and ether, the two most-popular cryptos, were up by more than 8% on Monday.—Cathie Wood (@CathieDWood) March 13, 2023 Paul Krugman brushes off fears of moral hazard, and pokes fun at crypto buyersPaul Krugman has dismissed concerns that guaranteeing SVB's deposits will encourage people to invest in high-risk banks in the belief they'll get their money back even if the bank collapses."I don't think expectations of a bailout created this mess," the Nobel Prize-winning economist said in a Monday tweet. "The depositors weren't that smart."Krugman, a vocal skeptic of cryptocurrencies, also took aim at the crypto companies such as Circle that kept their money at SVB."I mean, if you're totally into crypto, how likely that you're carefully thinking through the logic of deposit insurance? You haven't even figured out what money is!" he tweeted.—Paul Krugman (@paulkrugman) March 13, 2023 Why inflation, interest rates, and the pandemic may help explain DBV's downfallIt's worth reflecting on how we ended up with the 16th-largest US bank collapsing, marking the biggest bank failure since 2008.Numerous investors and economists have blamed the US response to the COVID-19 pandemic. The strategy centered on keeping interest rates at virtually zero, buying up corporate bonds, mailing out stimulus checks to households, and offering loans and grants to companies in a bid to shore up the economy.The unprecedented amount of fiscal and monetary stimulus — combined with the pandemic disrupting domestic production and snarling global supply chains, and Russia invading Ukraine and throwing world energy markets into disarray — sparked inflation.The pace of price increases hit a 40-year high of 9.1% last June, spurring the Fed to hike interest rates from virtually zero to upwards of 4.5% over the past year. Higher rates increase the cost of car loans, mortgages, credit cards, and other types of borrowing. Combined with surging prices, that has put pressure on US households and rapidly eroded the money they saved during the pandemic.Higher rates also encourage saving over spending, hiring, and investing. As a result, they weigh on asset prices and sap demand, increasing the risk of a recession.That darkening backdrop likely played a role in SVB's collapse, especially given many of the bank's customers were cash-hungry, venture-capital backed companies that might be less able to weather an economic downturn than more established, profitable businesses.SVB bought long-dated bonds that plunged in price as the Fed hiked rates (higher rates translate into larger bond yields, and bond prices move inversely to yields). Meanwhile, its customers may have been feeling especially jittery given the current pressure on valuations and prospect of a recession, making them more likely to panic and withdraw their cash.The "asset-liability mismatch" of long-duration bonds and instantly withdrawable, uninsured deposits, combined with broader concerns about economic growth, likely helps explain why SVB ran into trouble. It's a sea of red for European banking stocksCredit Suisse, Commerzbank, and other European banks fell sharply in morning trading on Monday."Getting all tingly with nostalgia," Neil Wilson, the chief market analyst for Finalto and Markets.com, tweeted.In a morning note, Wilson questioned whether US authorities' decision to get involved in the SVB situation signals they're worried about the wider industry."Does such coordinated intervention signal that regulators are really worried about the US banking system?" he asked. "Would they step in if all were really well elsewhere?"London-listed financial stocks also slumped, with Barclays down 6% and Lloyds down 5% at the time of writing.—Neil Wilson (@marketsneil) March 13, 2023  Giving SVB depositors their money back could cause problems, Cliff Asness saysThe federal intervention to protect SVB and Signature Bank's depositors from losing any money could make people too relaxed about where they bank, Cliff Asness has warned.The billionaire investor and AQR Capital Management cofounder argued that depositors may now feel confident putting any sum of money in a particular bank regardless of the risks attached, as they'll assume the cash will be returned to them if the bank fails.—Clifford Asness (@CliffordAsness) March 13, 2023 Justin Wolfers says SVB was bailed outIt's worth highlighting a Twitter thread, penned on Sunday by Justin Wolfers, that argues authorities guaranteeing of SVB's deposits should be considered a bailout. The Fed, FDIC, and Treasury said the intervention came at no cost to the taxpayer."Once again it's privatize the gains and nationalize the losses," Wolfers tweeted, meaning that SVB's bosses and investors were able to pocket the profits from running the bank, but once it failed, the government picked up the bill."They're not using taxpayer funds," Wolfers said. "Just taxing banks, then using the proceeds of a tax — which are definitely not to be thought of as taxpayer funds that could be used for other purposes — to pay for the bailout."In other words, the economics professor's view is that the premiums paid to the FDIC by banks are essentially tax revenues that could be used for other purposes, but they're being used in this case to make up for SVB's mistakes.—Justin Wolfers (@JustinWolfers) March 12, 2023 HSBC has acquired SVB's UK arm for £1HSBC, one of the world's largest banks, revealed on Monday that it acquired SVB's UK unit for a single British pound, worth about $1.21.The UK government and the Bank of England facilitated the private sale, Chancellor Jeremy Hunt tweeted."Deposits will be protected, with no taxpayer support," Hunt said.—Jeremy Hunt (@Jeremy_Hunt) March 13, 2023 A former FDIC chair expects more banks to failA former top banking regulator believes SVB will be the first of several banks to fold in the weeks ahead."There's no doubt in my mind: There's going to be more. How many more? I don't know," William Isaac, the former chairman of the FDIC, told Politico on Sunday."Seems to me to be a lot like the 1980s," Isaac added. More than 1,600 FDIC-insured banks were closed or received financial assistance between 1980 and 1994, the largest number in the agency's history.First Republic Bank stock plunges 60% on contagion fearsMarkets InsiderFirst Republic Bank shares plunged by over 60% in premarket trading on Monday, as SVB's collapse fanned fears that the San Franscisco-based lender would also implode.First Repuplic has rushed to calm nervous investors, noting on Sunday that it has secured access to additional cash from the Fed and JPMorgan, boosting its available liquidity to over $70 billion.Bill Ackman says he's relievedIn a Monday tweet, billionaire investor Bill Ackman dismissed claims that authorities protecting SVB's deposits constituted a bailout.Ackman argued that if the Fed, FDIC, and Treasury hadn't swooped in, the US would have faced a "1930s bank run continuing first thing Monday causing enormous economic damage and hardship to millions."The Pershing Square boss cautioned that more banks will probably collapse despite the intervention, but suggested it's reassuring to know how the government might contain the fallout.—Bill Ackman (@BillAckman) March 13, 2023 Mohamed El-Erian flags "eye-popping" volatilityMohamed El-Erian, Allianz's chief economic adviser and a former Pimco CEO, flagged immense volatility in US bond yields in a Monday tweet.Investors are reacting to SVB's collapse and the risk that other banks could follow, and it could take a while for things to calm down, he said.—Mohamed A. El-Erian (@elerianm) March 13, 2023 Jim Chanos says the SVB solution doesn't address the real problem, and warns stocks could slumpJim Chanos poured cold water on relieved investors late on Sunday, warning that guaranteeing SVB's deposits doesn't address the issue of banks having too many long-term assets relative to their short-term liabilities in the form of uninsured deposits.The short seller, who helped expose accounting fraud at Enron in the early 2000s, also cautioned that the failure to find a buyer for SVB's assets could mean appetite for stocks and other risk assets if fading.—Diogenes (@WallStCynic) March 13, 2023In an earlier tweet, Chanos underscored the risk that politicians frame any aid to SVB as a bailout of wealthy elites.—Diogenes (@WallStCynic) March 12, 2023 Jeffrey Gundlach rings the recession alarm"Bond King" Jeffrey Gundlach, the head of DoubleLine Capital, warned in a Monday tweet that the sudden shift in bond yields on the back of the SVB fiasco indicates the US economy is barreling towards a downturn.—Jeffrey Gundlach (@TruthGundlach) March 13, 2023 Keep scrolling for our coverage of the big news and commentary before SVB's deposits were guaranteed:Silicon Valley Bank was especially vulnerable to collapse, JPMorgan's chairman of market and investment strategy said in a weekend note, according to CNBC."SVB was in a league of its own: a high level of loans plus securities as a percentage of deposits, and very low reliance on stickier retail deposits as a share of total deposits," Michael Cembalest said.The lender took more risks than its peers, leaving it exposed to running short of funds if interest rates rose, withdrawals surged, and it was forced to sell assets, he continued.SVB "carved out a distinct and riskier niche than other banks, setting itself up for large potential capital shortfalls in case of rising interest rates, deposit outflows and forced asset sales," he said.David Friedberg expects lower rates and higher pricesDavid Friedberg, an agriculture-technology entrepreneur and co-host of the "All In" podcast, suggested on Sunday that the banking fiasco could pave the way for lower interest rates and higher inflation for a prolonged period.—david friedberg (@friedberg) March 12, 2023Indeed, Goldman Sachs analysts predicted in a Sunday note that the Fed wouldn't hike interest rates this month."The first cockroach in the cellar"The Wall Street Journal reported on Sunday that SVB could be the first of several banks to be exposed, and other smaller US banks could see an exodus of cash."I think this could be the first cockroach in the cellar," Fredric Russell, the boss of an investment manager, told WSJ. "Banks get thrown into the dark pool of complacency, and then they lower their quality standards.""If the resolution of SVB Financial isn't handled well, there's a systemic risk that uninsured depositors will flee small banks," Bob Elliott, the cofounder and chief investor of asset manager Unlimited, told the newspaper.Gary Cohn calls for depositors to get their money backGary Cohn, the director of the National Economic Council under President Trump and a former president and operating chief of Goldman Sachs, warned there could be painful fallout if depositors aren't made whole.—Gary Cohn (@Gary_D_Cohn) March 12, 2023 Bill Ackman flags the risk of a wave of bank runsBill Ackman, a billionaire investor and the boss of Pershing Square, urged the FDIC on Saturday to intervene or risk a flurry of bank runs.—Bill Ackman (@BillAckman) March 11, 2023He warned the government only had 48 hours to take action to protect deposits, or it might destroy confidence in all but the largest banks.—Bill Ackman (@BillAckman) March 11, 2023 Mark Cuban says consumers and businesses shouldn't suffer from a bank's failureTech billionaire Mark Cuban emphasized on Saturday that if SVB's deposits aren't protected, it would be the consumers and businesses holding their money there who would be hurt.—Mark Cuban (@mcuban) March 11, 2023 Nouriel Roubini says the Fed might hold off on hiking interest ratesNouriel Roubini, nicknamed "Dr. Doom" for his pessimistic predictions, suggested on Sunday that the Fed will only hike interest rates by 25 basis points or not at all, as it waits to see how the banking fiasco plays out.The economics professor at NYU Stern also flagged the risk that the fallout from SVB's implosion spreads internationally.—Nouriel Roubini (@Nouriel) March 12, 2023Roubini, a vocal critic of cryptocurrencies, warned that the crypto ecosystem was even more fragile than the traditional banking sector.—Nouriel Roubini (@Nouriel) March 11, 2023  David Sacks calls for SVB depositors to be made wholeVenture capitalist David Sacks dismissed the idea on Sunday that SVB's depositors should lose their money simply because they chose the wrong bank.—David Sacks (@DavidSacks) March 12, 2023Sacks later emphasized that he wants investors and executives to be wiped out by SVB's collapse, but he believes it's harsh for people who simply opened a bank account there to lose money.—kanekoa.substack.com (@KanekoaTheGreat) March 12, 2023 Michael Burry compares SVB to Enron, and says the next WorldCom is comingMichael Burry, the investor of "The Big Short" fame, appeared to compare SVB to Enron in a now-deleted Thursday tweet.The Scion Asset Management chief, best known for predicting and profiting from the collapse of the mid-2000s US housing bubble, also warned another major company will implode in time.Bethany McLean, the author of "The Smartest Guys in the Room," told Insider that she didn't see too many similarities between SVB and Enron, given the latter was found to be fraudulent and its collapse didn't bring down the system."Maybe the lesson is, don't be Enron!" she said. "If you're going to collapse under the weight of your bad decisions, make sure you take enough others down with you - particularly innocent others like employees who may not get their paychecks - so that the government has to step in."Burry later bemoaned the greed and recklessness that led to SVB going under, and hinted that printing money would likely cause problems such as asset bubbles and inflation.Paul Krugman dismisses comparisons of SVB to Lehman BrothersPaul Krugman brushed away fears that SVB's implosion could echo the collapse of Lehman Brothers in 2008, which helped spark the financial crisis.—Paul Krugman (@paulkrugman) March 11, 2023The Nobel Prize-winning economist noted SVB's large volume of deposits made it vulnerable to a bank run, but its focus on Treasuries is nowhere near as dangerous as the subprime mortgages that helped inflate the housing bubble.—Paul Krugman (@paulkrugman) March 11, 2023 Larry Summers warns that allowing SVB depositors to lose their money would be a 'Lehman-like error'Larry Summers urged authorities in a Sunday tweet to step in and guarantee the deposits of SVB's customers, or risk undercutting faith in the US financial system.The former US Treasury chief noted that taking swift action would be cheaper for taxpayers and better for the economy, than delaying and risking a moment to rival the collapse of Lehman Brothers in 2008, which helped spark the financial crisis.—Lawrence H. Summers (@LHSummers) March 12, 2023  Elon Musk said he was "open to the idea" of buying SVBElon Musk said in a Friday tweet that he wouldn't be opposed to buying SVB following its collapse."I think Twitter should buy SVB and become a digital bank," Razer cofounder and CEO Min-Liang Tan tweeted."I'm open to the idea," the CEO of Tesla, Twitter, and SpaceX replied.Read the original article on Business Insider.....»»

The acquisition of CSP provides ArcelorMittal (MT) with the opportunity for further expansions, including the potential to boost primary steelmaking capacity. ArcelorMittal MT recently announced the acquisition of Companhia Siderurgica do Pecem (“CSP”) in Brazil for an enterprise value of $2.2 billion. CSP operates a 3 million ton capacity blast furnace and its facility, located in Ceara in northeast Brazil, was commissioned in 2016.The acquisition brings the opportunity for further expansions, including the potential to boost primary steelmaking capacity (including direct reduced iron) and rolling and finishing capacity. Moreover, it offers significant operational and financial synergies. Given its location, CSP also offers an opportunity to establish a new center for producing low-carbon steel, capitalizing on the state of Ceara's desire to establish a low-cost, green hydrogen hub in Pecem.This gives ArcelorMittal a choice to sell either inside the group or to the North and South American markets while also adding capacity for high-quality, cost-competitive slabs. The company also has the choice of adding finishing facilities and expanding its capacity in the long run. With the investments in renewable energy in the state of Ceara, there is a clear road to decarbonizing the asset.On its fourth-quarter call, the company noted that it is seeing apparent demand conditions improving as the current destocking phase reaches maturity.For 2023, the company anticipates a 2-3% year-over-year recovery in overall steel consumption worldwide, excluding China. Moreover, MT forecasts a 5% year-over-year increase in steel shipments in 2023. Although it is anticipated that real consumption growth in the United States will continue to be lackluster, it is believed that the projected cessation of destocking would bring about a rise of 1.5-3.5% in apparent demand in 2023. In Europe this year, it anticipates a slight fall in real demand. Yet it projects a 0.5-2.5% recovery in apparent demand in 2023.As COVID-19 restrictions ended in 2023, ArcelorMittal predicts a significant rebound in economic growth in China. Considering the continued weakness in real estate, it forecasts steel consumption to stabilize in 2023 (+1% to -1%), with potential growth relying on China government's infrastructure stimulus.ArcelorMittal Price and Consensus ArcelorMittal price-consensus-chart | ArcelorMittal QuotePrice PerformanceMT’s shares are down 1.3% over the trailing 12-month period against the industry’s rise of 9.8%.Image Source: Zacks Investment ResearchZacks Rank & Other Key PicksMT currently sports a Zacks Rank #1 (Strong Buy).Other top-ranked stocks worth considering in the basic materials space include ATI Inc. ATI, Cal-Maine Foods CALM and Linde plc LIN. You can see the complete list of today’s Zacks #1 Rank stocks here.ATI has a projected earnings growth rate of 8.5% for the current year. The Zacks Consensus Estimate for the firm’s current year earnings has been revised 4.4% upward in the past 60 days. Its earnings beat the Zacks Consensus Estimate, the average being 32.4%. ATI has rallied 64.4% in a year. The company has a Zacks Rank #2 (Buy).CALM has a projected earnings growth rate of 515.8% for the current year. The Zacks Consensus Estimate for the firm’s current-year earnings has been constant in the past 60 days. Its earnings beat the Zacks Consensus Estimate, the average being 15.3%. CALM has rallied roughly 4.7% in a year. The company flaunts a Zacks Rank #1.LIN has a projected earnings growth rate of 8.1% for the current year. The Zacks Consensus Estimate for the firm’s current-year earnings has been revised 5.5% upward in the past 60 days. Its earnings beat the Zacks Consensus Estimate, the average being 5.9%. LIN has rallied roughly 11.1% in a year. The company has a Zacks Rank #2.  Free Report Reveals How You Could Profit from the Growing Electric Vehicle Industry Globally, electric car sales continue their remarkable growth even after breaking records in 2021. High gas prices have fueled his demand, but so has evolving EV comfort, features and technology. So, the fervor for EVs will be around long after gas prices normalize. Not only are manufacturers seeing record-high profits, but producers of EV-related technology are raking in the dough as well. Do you know how to cash in?  If not, we have the perfect report for you – and it’s FREE! Today, don't miss your chance to download Zacks' top 5 stocks for the electric vehicle revolution at no cost and with no obligation.>>Send me my free report on the top 5 EV stocksWant the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report ArcelorMittal (MT): Free Stock Analysis Report ATI Inc. (ATI): Free Stock Analysis Report Cal-Maine Foods, Inc. (CALM): Free Stock Analysis Report Linde PLC (LIN): Free Stock Analysis ReportTo read this article on Zacks.com click here.Zacks Investment Research.....»»

Retail stocks like Urban Outfitters, Inc. (URBN), Tapestry, Inc. (TPR), Casey's General Stores, Inc. (CASY) and DICK'S Sporting Goods, Inc. (DKS) are poised to do well in the near term. The retail sector has been putting up an impressive show this year. Sales skyrocketed during the holiday season, and after a solid January, February once again turned out to be a good month for retailers. E-commerce, which has been playing a key role in helping the retail sector, emerged as a winner in February.Additionally, the job market is relatively robust despite rising price pressures. This is helping people since their purchasing power has continued to rise as a result of new job additions to the economy. Given this situation, stocks like Urban Outfitters, Inc. URBN, Tapestry, Inc. TPR, Casey's General Stores, Inc. CASY and DICK'S Sporting Goods, Inc. DKS are likely to benefit from a surge in retail sales.Retail Sales SoarAccording to the latest Mastercard SpendingPulse, retail sales in the United States jumped a solid 6.9% year over year in February. This comes after the Commerce Department announced that retail sales in January rose 3%, beating analysts’ expectations of a jump of 1.9%.The retail sector made a great start to this year following a dynamic holiday season to round off an impressive 2022 despite mounting commodity prices and inflationary pressures. The robust February sales were primarily driven by spending at restaurants and bars, which rose 14.2% year over year.Sales at apparel stores increased 3.9% year over year, while departmental stores recorded a jump of 5.6% in salesAlso, spending on air tickets and lodging jumped 15.6% and 42.7%, respectively. The categories prove that consumers are aggressively spending on discretionary items despite surging inflationary pressures.Another reason behind the jump in airline ticket sales and lodging was the growing demand for travel experiences ahead of the spring break.E-commerce, which has been a major factor in boosting retail sales since the pandemic struck, provided support to the industry once more as online sales increased 13.2% year over year in February. E-commerce has emerged as the most preferred mode of shopping.Another factor that has been playing a major role in aiding the retail sector is strong job additions to the economy. Inflationary pressures have made people cautious with their spending but a resilient labor market has been helping sales.In 2022, the labor market continued to be strong, and this year has also started out well.The Labor Department announced that a solid 311,000 jobs were added to the economy in February, exceeding economists’ expectations of a jump of 205,000. This follows a 517,000 jump in nonfarm payrolls in January.Our ChoicesThis is, thus, the right opportunity to invest in retail stocks that have both a strong offline and online presence.Urban Outfitters, Inc. is a lifestyle specialty retailer that offers fashion apparel and accessories, footwear, home décor and gifts’ products. URBN’s merchandise is generally sold directly to consumers through stores, catalogs, call centers and e-commerce platforms. The company has operations in the United States, Canada and Europe.Urban Outfitters’expected earnings growth rate for the current year is 41.7%. The Zacks Consensus Estimate for current-year earnings has improved 11.2% over the past 60 days. URBN presently sports a Zacks Rank #1.Tapestry, Inc. is the designer and marketer of fine accessories and gifts for women and men in the United States and internationally. TPR offers lifestyle products, which include handbags, women’s and men’s accessories, footwear, jewelry, seasonal apparel collections, sunwear, travel bags, fragrance and watches.Tapestry’sexpected earnings growth rate for the current year is 7.2%. The Zacks Consensus Estimate for current-year earnings has improved 2.5% over the past 60 days. TPR presently carries a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.Casey's General Stores, Inc. operates convenience stores under the Casey's and Casey's General Store names in 16 Midwestern states, mainly Iowa, Missouri and Illinois. CASY also operates two stores under the name "Tobacco City," selling primarily tobacco and nicotine products, one liquor store, and one grocery store.Casey's General Stores’ expected earnings growth rate for the current year is 27.5%. The Zacks Consensus Estimate for current-year earnings has improved 7.7% over the past 60 days. CASY currently carries a Zacks Rank #2.DICK'S Sporting Goods, Inc. operates as a major omni-channel sporting goods retailer, offering athletic shoes, apparel, accessories and a broad selection of outdoor and athletic equipment for team sports, fitness, camping, fishing, tennis, golf, water sports, etc. DKS offers these items through a blend of associates, in-store services and unique specialty shop-in-shops.DICK'S Sporting Goods’ expected earnings growth rate for the current year is 7.2%. The Zacks Consensus Estimate for current-year earnings has improved 7.4% over the past 60 days. DKS currently carries a Zacks Rank #2. Free Report Reveals How You Could Profit from the Growing Electric Vehicle Industry Globally, electric car sales continue their remarkable growth even after breaking records in 2021. High gas prices have fueled his demand, but so has evolving EV comfort, features and technology. So, the fervor for EVs will be around long after gas prices normalize. Not only are manufacturers seeing record-high profits, but producers of EV-related technology are raking in the dough as well. Do you know how to cash in?  If not, we have the perfect report for you – and it’s FREE! Today, don't miss your chance to download Zacks' top 5 stocks for the electric vehicle revolution at no cost and with no obligation.>>Send me my free report on the top 5 EV stocksWant the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Urban Outfitters, Inc. (URBN): Free Stock Analysis Report DICK'S Sporting Goods, Inc. 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Reports progress towards global supply chain development Ended the fourth quarter of 2022 with cash, cash equivalents and marketable securities of $102.9 million Management to host conference call and webcast Thursday, March 9, 2023 at 8:30 AM ET NEVE ILAN, Israel, March 09, 2023 (GLOBE NEWSWIRE) --  NANO-X IMAGING LTD (NASDAQ:NNOX) ("Nanox" or the "Company"), an innovative medical imaging technology company, today announced results for the fourth quarter ended December 31, 2022 and provided a business update. Fourth Quarter 2022 Highlights and Recent Developments:   ● Generated $2.1 million in revenue in the fourth quarter of 2022 compared to $2.4 million in the third quarter of 2022, $2.2 million in the second quarter of 2022 and $1.8 million in the first quarter of 2022 and total of $8.6 million in revenue in 2022.         ● Initially deployed a Nanox.ARC system at the University of Ghana Medical Centre for training and demonstration purposes.         ● A Nanox.ARC system has been shipped to Nigeria and is undergoing regulatory review by the Nigerian Nuclear Regulatory Authority.         ● Announced a collaboration with Nuance Precision Imaging Network, a Microsoft company, which makes Nanox AI solutions available through its marketplace to thousands of healthcare facilities and providers who use Nuance's reporting and image sharing solutions. "I am happy to report our continued progress on multiple business fronts.  This includes making significant progress toward the initial deployment of the Nanox.ARC system in Ghana and Nigeria, expanding the availability of the Nanox AI solution via a key commercial partnership, while also continuing the FDA review process for the Nanox.ARC," said Erez Meltzer, Nanox Chief Executive Officer. "Looking back, 2022 was a successful year for Nanox as we spent much time and effort on our 510(k) submission to the FDA, rationalized costs to extend our cash runway, and strengthened our manufacturing infrastructure.  We believe that 2023 will also be a highly impactful year, as we aim to announce the initial shipments of the Nanox.ARC system."  Financial results for three months ended December 31, 2022 For the three months ended December 31, 2022, the Company reported a net loss of $44.8 million, compared to a net loss of $22.0 million for the three months ended December 31, 2021 (which is referred to as the "comparable period"), which increase was largely due to a goodwill impairment in the amount of $36.5 million for the three months ended December 31, 2022, an increase in the Company's research and development expenses in the amount of $0.7 million, which was mitigated by a decrease in the Company's general and administrative expenses in the amount of $2.7 million, a decrease in the Company's sales and marketing expenses in the amount of $0.4 million and $9.3 million income due to change in the Company's contingent earnout liability. For the three months ended December 31, 2022, the Company reported revenue of $2.1 million, compared to $1.3 million in the comparable period. During the three months ended December 31, 2022, the Company generated revenues through the sales of teleradiology services and AI solutions. The Company's gross loss during the three months ended December 31, 2022, totaled $1.7 million on a GAAP basis as compared to a gross loss of $1.5 million in the comparable period. The Company's revenue from teleradiology services for the three months ended December 31, 2022 was $2.0 million with a gross profit of $0.3 million on a GAAP basis as compared to $1.0 million with a gross profit of $0.0 million on a GAAP basis in the comparable period. The Company's revenue from its AI solutions for the three months ended December 31, 2022, was $0.1 million with a gross loss of $2.0 million on a GAAP basis as compared to $0.3 million with a gross loss of $1.5 million on a GAAP basis in the comparable period. Non-GAAP cost of revenue of the Company's teleradiology services for the three months ended December 31, 2022 was $1.2 million, as compared to $0.6 million in the comparable period, resulting in a non-GAAP gross profit of $0.8 million for the three months ended December 31, 2022 as compared to $0.4 million in the comparable period on a non-GAAP basis, which represents a gross profit margin of approximately 40% on a non-GAAP basis for the three months ended December 31, 2022 as compared to 39% in the comparable period. The increase in gross profit margin on a non-GAAP basis is attributable mainly to the increase in our rates for teleradiology services. The Company's non-GAAP gross profit from its AI solutions for the three months ended December 31, 2022 was $0.0 million as compared to $0.2 million for the comparable period. In total, non-GAAP cost of revenue for the three months ended December 31, 2022 was $1.3 million, as compared to $1.1 million in the comparable period, resulting in a non-GAAP gross profit of $0.8 million for the three months ended December 31, 2022, as compared to $0.4 million in the comparable period which represents a gross profit margin of approximately 39% on a non-GAAP basis as compared to 40% on a non-GAAP basis in the comparable period. Research and development expenses for the three months ended December 31, 2022 were $7.1 million, as compared to $6.4 million in the comparable period. The increase of $0.7 million was mainly due to an increase in our cost of labor in the amount of $0.2 million and the cost of development of our systems in the amount of $0.5 million due to the development of the multi-source Nanox.ARC and the Nanox.CLOUD. Sales and marketing expenses for the three months ended December 31, 2022 were $1.5 million, as compared to $1.9 million in the comparable period. The decrease of $0.4 million was mainly due to a decrease in the cost of labor in the amount of $0.1 million and a decrease in share-based compensation in the amount of $0.2 million. General and administrative expenses for the three months ended December 31, 2022, were $8.2 million, as compared to $10.9 million in the comparable period. The decrease of $2.7 million was mainly due to a decrease in the Company's cost of labor in the amount of $0.5 million, a decrease in share-based compensation in the amount of $2.3, a decrease in our cost of the Company's directors' and officer's liability insurance premium of $0.3 million, a decrease in other professional services in the amount of $0.4 million, and a decrease in the Company's legal fees due to the U.S. Securities and Exchange Commission ("SEC") investigation and class-action litigation as described in this Company's Form 6-K filed on March 9, 2023 in the amount of $2.0 million. Change in contingent earnout liability was $9.1 million in the three months ended December 31, 2022, as compared to none in the comparable period, due to the decrease in the Company's contingent earnout liability , largely due to a settlement agreement entered into with the former shareholders of Nanox AI Ltd. ("Nanox AI") (formerly named Zebra Medical Vision Ltd. ("Zebra")) with respect to any additional amount that could be granted under the Agreement and Plan of Merger, dated August 9, 2021, as amended, among the Company, Zebra and Perryllion Ltd., as representative of Zebra's equity holders.. Goodwill impairment for the three months ended December 31, 2022, was $36.5 million due to the goodwill impairment related to the Nanox AI reporting unit as a result of the annual impairment test on goodwill. As part of this analysis the Company considered the potential impact of the sensitivity of certain estimates and assumptions. These considerations resulted in an estimate of longer than expected time to generate material revenues, gross profit, and positive operating cash flows of the Nanox AI reporting unit, especially with its population health applications. Therefore, the Company determined that the value of the Nanox AI reporting unit decreased below its carrying value, and the Company recorded a goodwill impairment charge of $36.5 million in the fourth quarter of 2022.  Non-GAAP net loss applicable to ordinary shares for the three months ended December 31, 2022, was $9.9 million, as compared to $15.0 million in the comparable period. Non-GAAP gross profit for the three months ended December 31, 2022 was $0.8 million, as compared to $0.2 million the comparable period. Non-GAAP research and development expenses for the three months ended December 31, 2022 were $6.2 million, as compared to $5.4 million in the comparable period. Non-GAAP sales and marketing expenses for the three months ended December 31, 2022 were $1.1 million, as compared to $1.4 million in the comparable period. Non-GAAP general and administrative expenses for the three months ended December 31, 2022 were $4.7 million, as compared to $7.2 million in the comparable period. A reconciliation between GAAP and non-GAAP financial measures for the three-month periods ended December 31, 2022 and 2021 is provided in the financial results that are part of this press release. The difference between the GAAP and non-GAAP financial measures above is mainly attributable to goodwill impairment, amortization of intangible assets, share-based compensation, secondary offering expenses, change in contingent earnout liability and legal fees in connection with class-action litigation and the SEC investigation. Liquidity and Capital Resources The Company ended the fourth quarter of 2022 with total cash, cash equivalents and marketable securities of $102.9 million. As of December 31, 2022, the Company had $77.7 million of cash, cash equivalents and short-term marketable securities and $25.2 million of long-term marketable securities. As of December 31, 2022, the Company had total current assets of $82.5 million and total current liabilities of $17.1 million, creating a working capital of $65.4 million. As of December 31, 2021, the Company had $88.7 million of cash, cash equivalents and short-term marketable securities and $67.8 million of long-term marketable securities and in total, $156.6 of cash and marketable securities. As of December 31, 2021, the Company had total current assets of $94.9 million and total current liabilities of $52.8 million, creating a working capital of $42.1 million. The decrease in the Company's cash, cash equivalents and marketable securities of $53.7 million during the twelve-month period ended December 31, 2022 was primarily due to negative cash flow from operations of $43.4 million and purchase of property and equipment of $7.2 million for the Company's fabrication facility in South Korea and long lead items for the Company's multi-source systems. Other Assets As of December 31, 2022, the Company had property and equipment, net of $43.5 million as compared to $37.4 million as of December 31, 2021. The increase is mainly attributed to the completion of the construction of the Company's fabrication facility in South Korea and purchase of machinery and equipment. As of December 31, 2022, the Company had intangible assets and goodwill of $98.6 million as compared to $160.1 million as of December 31, 2021. The decrease is attributable to the periodic amortization of intangible assets in the amount of $10.6 million and impairment of goodwill in the amount of $50.9 million. Shareholders' Equity As of December 31, 2022, the Company had approximately 55.1 million shares outstanding as compared to 51.8 million shares outstanding as of December 31, 2021. The increase was mainly due to the issuance of 89,286 shares to the former shareholders of Nanox.AI (formerly named Zebra) due to the achievement of a milestone pursuant to the terms of the Agreement and Plan of Merger, dated August 9, 2021, as amended (the "Agreement"), among the Company, Zebra and Perryllion Ltd., as representative of Zebra's former shareholders and an additional aggregate 2,648,424 ordinary shares to the former shareholders of Zebra under a settlement with respect to any additional amount that could be granted under the Agreement. As a result of the settlement, both parties' performance obligations under the Agreement have been satisfied in full. In addition, the increase was also due to the issuance of 192,927 ordinary shares upon the exercise of warrants and 372,159 ordinary shares upon the exercise of options, which generated, in the aggregate, approximately $0.9 million in gross proceeds to the Company. Conference Call and Webcast Details Thursday, March 9, 2023 @ 8:30am ET Individuals interested in listening to the conference call may do so by joining the live webcast on the Investors section of the Nanox website under Events and Presentations. Alternatively, individuals can register online to receive a dial-in number and personalized PIN to participate in the call. An archived webcast of the event will be available for replay following the event.  About Nanox: Nanox (NASDAQ:NNOX) is focused on applying its proprietary medical imaging technology and solutions to make diagnostic medicine more accessible and affordable across the globe. The vision of Nanox is to increase the early detection of medical conditions that are discoverable by medical image technologies based on X-rays, which Nanox believes is key to increasing early prevention and treatment, improving health outcomes, and, ultimately, saving lives. Nanox is developing a holistic imaging solution, which includes the Nanox System, comprised of the Nanox.ARC using its novel MEMs X-ray source technology, and the Nanox.CLOUD, a companion cloud software, integrated with AI solutions and teleradiology services. For more information, please visit www.nanox.vision.  Forward-Looking Statements: This press release may contain forward-looking statements that are subject to risks and uncertainties. All statements that are not historical facts contained in this press release are forward-looking statements. Such statements include, but are not limited to, any statements relating to the initiation, timing, progress and results of the Company's research and development, manufacturing and commercialization activities with respect to its X-ray source technology and the Nanox.ARC, the ability to realize the expected benefits of its recent acquisitions and the projected business prospects of the Company and the acquired companies. In some cases, you can identify forward-looking statements by terminology such as "can," "might," "believe," "may," "estimate," "continue," "anticipate," "intend," "should," "plan," "should," "could," "expect," "predict," "potential," or the negative of these terms or other similar expressions. Forward-looking statements are based on information the Company has when those statements are made or management's good faith belief as of that time with respect to future events and are subject to risks and uncertainties that could cause actual performance or results to differ materially from those expressed in or suggested by the forward-looking statements. Factors that could cause actual results to differ materially from those currently anticipated include: risks related to (i) Nanox's ability to complete development of the Nanox System; (ii) Nanox's ability to successfully demonstrate the feasibility of its technology for commercial applications; (iii) Nanox's expectations regarding the necessity of, timing of filing for, and receipt and maintenance of, regulatory clearances or approvals regarding its technology, the Nanox.ARC and Nanox.CLOUD from regulatory agencies worldwide and its ongoing compliance with applicable quality standards and regulatory requirements; (iv) Nanox's ability to realize the anticipated benefits of its acquisitions, which may be affected by, among other things, competition, brand recognition, the ability of the acquired companies to grow and manage growth profitably and retain their key employees; (v) Nanox's ability to enter into and maintain commercially reasonable arrangements with third-party manufacturers and suppliers to manufacture the Nanox.ARC; (vi) the market acceptance of the Nanox System and the proposed pay-per-scan business model; (vii) Nanox's expectations regarding collaborations with third-parties and their potential benefits; (viii) Nanox's ability to conduct business globally; (ix) changes in global, political, economic, business, competitive, market and regulatory forces; and (x) risks related to business interruptions resulting from the COVID-19 pandemic or similar public health crises, among other things. For a discussion of other risks and uncertainties, and other important factors, any of which could cause Nanox's actual results to differ from those contained in the Forward-Looking Statements, see the section titled "Risk Factors" in Nanox's Annual Report on Form 20-F for the year ended December 31, 2021, and subsequent filings with the U.S. Securities and Exchange Commission. The reader should not place undue reliance on any forward-looking statements included in this press release. Except as required by law, Nanox undertakes no obligation to update publicly any forward-looking statements after the date of this report to conform these statements to actual results or to changes in the Company's expectations. Non-GAAP Financial Measures This press release includes information about certain financial measures that are not prepared in accordance with generally accepted accounting principles in the United States ("GAAP"), including non-GAAP net loss attributable to ordinary shares, non-GAAP cost of revenue, non-GAAP gross profit, non-GAAP gross profit margin, non-GAAP research and development expenses, non-GAAP sales and marketing expenses, non-GAAP general and administrative expenses and non-GAAP basic and diluted loss per share. These non-GAAP measures are not based on any standardized methodology prescribed by GAAP and are not necessarily comparable to similar measures presented by other companies. These non-GAAP measures are adjusted for (as applicable) amortization of intangible assets, share-based compensation expenses, secondary offering expenses, goodwill impairment, change in contingent earnout liability and legal fees in connection with class-action litigation and the SEC investigation. The Company's management and board of directors utilize these non-GAAP financial measures to evaluate the Company's performance. The Company provides these non-GAAP measures of the Company's performance to investors because management believes that these non-GAAP financial measures, when viewed with the Company's results under GAAP and the accompanying reconciliations, are useful in identifying underlying trends in ongoing operations. However, these non-GAAP measures are not measures of financial performance under GAAP and, accordingly, should not be considered as alternatives to GAAP measures as indicators of operating performance. Further, these non-GAAP measures should not be considered measures of the Company's liquidity. A reconciliation of certain GAAP to non-GAAP financial measures has been provided in the tables included in this press release. NANO-X IMAGING LTD.UNAUDITED CONDENSED CONSOLIDATED BALANCE SHEETS(U.S. dollars in thousands except share and per share data)     December 31,2022     December 31, 2021       U.S. Dollars in thousands   Assets             CURRENT ASSETS:             Cash and cash equivalents     38,463       66,645   Marketable securities - short term     39,161       22,066   Accounts receivables net of allowance for credit losses of $34 and $137 as of December 31, 2022 and December 31,2021, respectively.     977       1,051   Prepaid expenses     2,414       3,129   Other current assets     1,446       1,966   TOTAL CURRENT ASSETS     82,461       94,857                     NON-CURRENT ASSETS:                 Restricted cash     66       127   Property and equipment, net     43,545       37,435   Operating lease right-of-use asset     1,157       1,725   Marketable securities - long term     25,198       67,845   Intangible assets     91,219       101,826   Goodwill     7,420       58,298   Other non-current assets     2,867       1,057   TOTAL NON-CURRENT ASSETS     171,472       268,313   TOTAL ASSETS     253,933       363,170                     Liabilities and Shareholders' Equity                 CURRENT LIABILITIES:                 Accounts payable     3,619       3,134   Accrued expenses     4,240       3,611   Loan from a Government Agency     -       145   Deferred revenue     182       247   Contingent short term earnout liability     4,250       42,471   Current maturities of operating lease liabilities     740       881   Other current liabilities     4,043       2,262   TOTAL CURRENT LIABILITIES     17,074       52,751                     NON-CURRENT LIABILITIES:                 Non-current operating lease liabilities     398       950   Long term loan     3,481       3,796   Non-current deferred revenue     398       415   Contingent long-term earnout liability     4,089       5,814   Deferred tax liability     3,330       7,063   Other long-term liabilities     483       233   TOTAL NON-CURRENT LIABILITIES     12,179       18,271   TOTAL LIABILITIES     29,253       71,022                     COMMITMENTS AND CONTINGENCIES                                   SHAREHOLDERS' EQUITY:                 Ordinary Shares, par value NIS 0.01 per share 100,000,000 authorized at December 31, 2022 and December 31 2021, 55,094,237 and 51,791,441 issued and outstanding at December 31, 2022 and December 31, 2021, respectively     158       149   Additional paid-in capital     477,953       438,820   Accumulated other comprehensive loss     (1,974 )     (607 ) Accumulated deficit     (251,457 )     (146,214 ) TOTAL SHAREHOLDERS' EQUITY     224,680       292,148   TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY     253,933       363,170   NANO-X IMAGING LTD.UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS ANDCOMPREHENSIVE LOSS(U.S. dollars in thousands except share and per share data)     Twelve Months EndedDecember 31,     Three Months EndedDecember 31,       2022     2021     2022     2021   REVENUE     8,578       1,304       2,132       1,304                                     COST OF REVENUE     15,458       2,816       3,879       2,816                                     GROSS LOSS     (6,880 )     (1,512 )     (1,747 )     (1,512 )                                   OPERATING EXPENSES:                                 Research and development     26,507       17,122       7,095       6,362   Sales and marketing     4,376       7,033       1,494       1,940   General and administrative     41,254       34,709       8,185       10,919   Goodwill impairment     50,878       -       36,540       -   Change in contingent earnout liability     (20,376 )     -       (9,074 )     -   Other expense (income)     191       1,182       (231 )     1,182   TOTAL OPERATING EXPENSES     102,830       60,046       44,009       20,403   OPERATING LOSS     (109,710 )     (61,558 )     (45,756 )     (21,915 )                                   FINANCIAL INCOME (EXPENSES), net     789       (288 )     (113 )     (168 ) OPERATING LOSS BEFORE INCOME TAXES     (108,921 )     (61,846 )     (45,869 )     (22,083 )                                   INCOME TAX BENEFIT     3,678       48    .....»»