- Wall Street slightly drops early in Wednesday's session
- Wells Fargo recommendation bears Tesla shares more than 2.5% lower
- ZIM Integrated Shipping and Beauty Health earnings in the background
Wall Street indices started Wednesday's trading session slightly lower. The Nasdaq is currently losing nearly 0.23%, the S&P500 nearly 0.04% and the Russell 2000 nearly 0.02%. Technology companies lagged, dragged down by losing Tesla shares. Wells Fargo analysts significantly lowered their share price forecasts for the company.
إبدأ بالإستثمار اليوم أو تدرّب على حساب تجريبي
إنشاء حساب حساب تجريبي تحميل تطبيق الجوال تحميل تطبيق الجوال
Source: xStation5
The US2000 index is losing nearly 0.05% at the start of Wednesday's trading session, nevertheless, all the while the index remains within the local tops of the technical resistance zone close to 2100 points. A sustained breakout of this zone could encourage the buy side to test the 2132 points zone. The 2050 points zone, where the 50% abolition of the downward wave initiated in November 2021 runs, could now be considered a local support level.
Company news
- The Pentagon has withdrawn the award of up to USD 2.5 billion in grants to Intel (INTC.US). The shares are losing nearly 2% early in the session.
- Beauty Health (SKIN.US) shares are up 21% early in the session after the skincare company reported fourth quarter sales that exceeded consensus estimates. What's more, the company appointed Marla Beck as CEO:
FOURTH QUARTER RESULTS
- Net sales of $96.8 million, -1.4% y-o-y, estimated at $87.7 million
- Loss per share 7 cents vs. EPS of 3 cents a year ago, estimated loss per share of 9.5 cents
- Adjusted Ebitda $3.4 million, -79% y/y, estimated loss $4.41 million
- Adjusted gross margin 54.6% vs. 72.3% y/y
- Cash and cash equivalents $523.0 million, -8% y/y
Q1 FORECAST
- Sales $77m to $83 million, estimate $86.6 million
- Assumed loss of adjusted Ebitda $6 to $9 million
ANNUAL FORECAST
- Adjusted Ebitda above USD 40 million, estimate USD 31.6 million
- Net sales flat to low single-digit percentage growth
- Michael J Saylor, executive chairman of MicroStrategy (MSTR.US), is selling US$4.53 million worth of shares in the company, according to an SEC filing.
- ZIM Integrated Shipping (ZIM) loses 4% after the shipping company reported fourth-quarter results and provided annual guidance:
ANNUAL FORECAST
- Company sees adjusted Ebitda of $850 million to $1.45 billion, estimate $992.4 million
- Projected adjusted Ebitda loss of $300 million to a profit of $300 million
FOURTH QUARTER RESULTS
- Revenue $1.21 billion, -45% y/y, forecast $1.22 billion
- Loss per share $1.23 vs. EPS $3.44 y/y, estimated loss per share $1.75
- Adjusted Ebit loss $49 million vs. profit $585 million y/y, estimated loss $173.2 millio
- Adjusted Ebitda $190 million, -80% y/y, estimate $106.3 million
- Adjusted Ebit margin -4% vs. 27% y/y
- Adjusted Ebitda margin 16% vs. 44% y/y
- Carried volume 786 K-TEU, -4.5% y/y
- Average freight rate per TEU $1,102, -48% y/y
COMMENTARY AND BACKGROUND
For 2024, the Company expects to generate adjusted EBITDA in the range of $850 million to $1,450 million and adjusted EBIT in the range of $300 million loss to $300 million profit.
Analyst action
- Wells Fargo downgrades shares of Tesla (TSLA.US) to an "underweight" rating from a recent "equal-weight" rating. The target price has been revised downward to $125 per share. It was previously at $200. The company's shares are losing 2.5 per cent before the start of the session. Analysts see adversity ahead in the face of disappointing deliveries and further price cuts.
- Evercore ISI raised its target price on shares of Ulta Beauty (ULTA.US) to $635 from its last recommendation of $565 per share. Its analysts expect sales performance to be better in 2024 than the company's preliminary guidance assumes.
