Connect with us
  • tg

Stock Markets

This week in tech: Salesforce slowdown; Amazon denies plans to disrupt telecom

letizo News

Published

on

Here is your weekly Pro Recap on the biggest headlines out of a big earnings week for tech: Investors are disappointed by Salesforce and HP; Broadcom and Dell hearten the market; Amazon denies report of its plans to enter the wireless-services game.

InvestingPro subscribers get tech headlines like these in real time. Never miss another market-moving alert.

Soft guidance at Salesforce

Salesforce (NYSE:CRM) shares slumped 4.7% on Thursday even after the company reported better-than-expected earnings.

Analysts say the stock sold off because Salesforce revenue outperformance was below historical trends, and it also missed on under-contract sales expected in the next 12 months (that is, cRPO, or current revenue performance obligation). Moreover, its revenue growth for the quarter came in at its slowest pace since 2010, per Reuters.

For the quarter, adjusted earnings per share totaled $1.69, $0.08 better than the average analyst estimate, and $8.25 billion in sales was ahead of the $8.18B consensus. Next quarter Salesforce expects sales of $8.51B to $8.53B, higher than the $8.49B estimates.

Despite the market’s reaction, Goldman Sachs reiterated its Buy rating on CRM shares, saying the results were “strong in light of the challenging macro backdrop.”

Bank of America reaffirmed a Top Pick status on CRM, noting it is “impressed” by the 1% guidance beat for cRPO growth “given the tough macro and disruption from restructuring actions.”

Shares closed the week at $213.03.

Broadcom’s better-than-expected print

On Thursday, Broadcom (NASDAQ:AVGO) said it recorded earnings of $10.32 per share, easily beating the $10.12 consensus, on slightly better-than-expected revenue of $8.73B. It expects $8.85B in sales for the third quarter, comfortably above estimates for $8.72B.

Goldman Sachs said the company delivered “another solid quarter,” citing its expectations for that generative artificial intelligence “has the potential to support a ‘soft-landing’ in the near term and drive above-model growth in the medium- to long-term.”

Similarly, BofA argues that Broadcom’s AI portfolio is “underappreciated,” and assigned the stock a new Street-high price target of $950.

Shares dipped in the premarket on Friday, but ultimately closed the regular session up 2.5%. Shares ended the week at $812 even.

HP sees weakness in PC demand

HP (NYSE:HPQ) shares slid some 6% Wednesday after the PC maker posted its lowest revenue for a quarter since early 2020, noting ongoing weakness in demand for personal computers.

For the fiscal second quarter ended in April, HP reported a 21.7% drop in overall revenue to $12.9B – below expectations for $13.1B – encompassing a 29% slide in PC business sales and a 5% dip in printing revenue.

Adjusted earnings per share of $0.80 beat expectations for $0.76. Third-quarter (ending July) guidance calls for adjusted earnings of $0.81 to $0.91 a share vs. the $0.85 consensus, and it expects $3.30 to $3.50 for the full year, up from a prior analysts’ estimate of $3.34.

BofA reiterated its Underperform rating on the company, saying it remains cautious on HPQ shares even though guidance implies a second-half sales recovery: “We expect margins to normalize lower, and estimates to be revised lower over the next couple of qtrs.”

Barclays said the guidance may prove to be “aggressive,” adding, “We continue to see downside for shares with near term top-line, margin and cash flow pressures, though cost cuts help offset some of the underlying weaknesses.”

HP shares staged a partial recovery to end the week, rising 3.8% to $30.55.

Dell throttles estimates amid challenging macro environment

On Thursday Dell Technologies (NYSE:DELL) said adjusted EPS totaled $1.31, smashing the $0.86 average Street estimate, on better-than-expected revenue of $20.9B.

The beat on the bottom line comes even as margins and revenue fell amid a weaker backdrop for PC demand, and Dell guided for Q2 revenue of $20.7B at the midpoint of the range – worse than the Street at $21.1B.

Dell’s client solutions group and infrastructure solutions group business saw revenue fall 23% and 18% respectively amid “challenging economic backdrop,” the company said.

The stock saw a premarket slump before climbing 4% in Friday’s regular session.

Goldman Sachs and Deutsche Bank each kept their buy ratings on the stock, although the former highlighted a weak recovery in Dell’s core PC business.

Deutsche said it believes “the risk-reward is attractive” for the stock, noting, “Considering a tough macro environment suggested by other IT hardware peers, we are not too surprised by DELL’s cautious comments in the near term, and we view a delayed recovery as reasonable.”

Amazon denies report it is setting its sights on telecom space

An Amazon (NASDAQ:AMZN) spokesperson said the company doesn’t have plans to add wireless services at this time, Reuters reported, following a Bloomberg story that said Amazon is in talks to offer low-cost or free nationwide mobile phone service to Prime subscribers – news that shook the shares of telecom companies.

“We are always exploring adding even more benefits for Prime members, but don’t have plans to add wireless at this time,” the spokesperson said, according to Reuters, while AT&T, Verizon and T-Mobile “denied any talks.”

Amazon stock had gotten a lift on the initial report, while telecom companies like T-Mobile (NASDAQ:TMUS), AT&T Inc (NYSE:T), and Verizon (NYSE:VZ) took sharp slides.

On the other hand, shares in DISH Network (NASDAQ:DISH) gained as much as 8.3% on the report. The satellite services provider is already working with Amazon and is expected to start selling its wireless services on Amazon in July.

Stock Markets

Dillard’s, Inc. Announces $0.25 Cash Dividend

letizo News

Published

on

Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.

© 2007-2024Fusion Media Limited. All Rights Reserved.

Continue Reading

Stock Markets

MODULAR ATP Study of the mCRM™ System Meets Primary Safety and Efficacy Endpoints

letizo News

Published

on

Additional data from APPRAISE ATP trial reinforce modular therapy approach with EMBLEM™ Subcutaneous Implantable Defibrillator and EMPOWER™ Leadless Pacemaker

MARLBOROUGH, Mass., May 18, 2024 /PRNewswire/ — Boston Scientific Corporation (NYSE: NYSE:) today announced positive six-month results from the ongoing pivotal MODULAR ATP clinical trial of the mCRM™ System, the first modular cardiac rhythm management (CRM) system that consists of the EMBLEM™ Subcutaneous Implantable Defibrillator (S-ICD) System and the EMPOWER™ Leadless Pacemaker (LP). As components of the mCRM System, the devices are designed to work together wirelessly to coordinate painless intracardiac anti-tachycardia pacing (ATP) therapy, provide rate-responsive bradycardia pacing support and to prevent sudden cardiac death without the risk of leads in the heart or under the sternum. Findings were presented at Heart Rhythm 2024, the annual meeting of the Heart Rhythm Society, and simultaneously published in The New England Journal of Medicine.

In addition to evaluating the safety and performance of the EMPOWER LP as a standalone pacemaker, the trial evaluated the ability of the EMBLEM S-ICD System to successfully communicate a wireless request to the LP to deliver ATP therapy. Findings from the trial met all pre-specified six-month safety and effectiveness endpoints, and demonstrated:

  • A major complication-free rate of 97.5% after implantation of the EMPOWER LP.1
  • A communication success rate of 98.8% from the EMBLEM S-ICD System to the EMPOWER LP.2
  • An ATP success rate of 61.3%,3 and no patient requests for deactivation of ATP or bradycardia pacing due to pain or discomfort.
  • Pacing capture thresholds, which indicate stable device fixation within the heart, of ‰¤ 2.0 V at 0.4 ms in 97.4% of patients.

“We saw excellent overall clinical performance of the mCRM System in this study, including a high rate of communication success from the S-ICD to the leadless pacemaker, and a low rate of major leadless pacemaker complications,” said Prof. Reinoud Knops, M.D., Ph.D., Department of Cardiology and Electrophysiology, Amsterdam UMC, Amsterdam, Netherlands. “These findings are noteworthy, as high percentages of communication success and pain-free termination of spontaneous arrhythmia episodes indicate a potential upgrade pathway for patients currently implanted with an S-ICD who develop a need for ATP or pacing.”

Also presented at Heart Rhythm 2024 were results from the APPRAISE ATP clinical trial “ a prospective, randomized, multicenter study evaluating ATP as a primary strategy for terminating ventricular tachycardias in primary prevention (PP) patients (i.e., those without a history of spontaneous sustained ventricular arrhythmias). The trial enrolled 2,626 PP patients indicated to receive an ICD at 134 centers globally and is the largest head-to-head trial of ATP in this patient group. In the study, patients were randomized 1:1 to standard transvenous-ICD therapy “ ATP plus an ICD-delivered shock to terminate a ventricular tachycardia “ versus shock only. Across five years of follow up, data demonstrated a statistically significant, but small absolute first all-cause shock reduction in only 1% of patients per year. Shock burden, or the number of shocks experienced by a patient, was not significantly different between the two arms, and the vast majority of patients in the ATP-plus-shock arm did not require ATP therapy.

“Together, data from the MODULAR ATP and APPRAISE ATP trials reinforce the promise of the groundbreaking mCRM System, illustrating a clear path forward for physicians to offer therapies that prevent sudden cardiac death and deliver ATP for the small number of patients who benefit from it,” said Kenneth Stein, M.D., senior vice president and global chief medical officer, Boston Scientific. “Instead of subjecting all patients to the risks of more invasive approaches, such as placing leads in the heart or tunneling them under the sternum to provide therapies they might not require, these data indicate physicians may have the opportunity to tailor therapy to the patient’s individual needs and health.”

The company anticipates U.S. Food and Drug Administration approval of the mCRM System in 2025. For more information on the mCRM System and MODULAR ATP trial, visit www.bostonscientific.com/mcrm. To learn more about the EMBLEM MRI S-ICD System, visit www.sicdsystem.com.

The EMPOWER LP is an investigational device and limited by U.S. law to investigational use only. It is not available for sale. Some device references are for informational purposes only and are pending CE Mark. Not available in the European Economic Area.

Dr. Reinoud Knops is a paid consultant of Boston Scientific Corporation. He has not been compensated in connection with this press release.

About Boston Scientific
Boston Scientific transforms lives through innovative medical technologies that improve the health of patients around the world. As a global medical technology leader for more than 40 years, we advance science for life by providing a broad range of high-performance solutions that address unmet patient needs and reduce the cost of healthcare. Our portfolio of devices and therapies helps physicians diagnose and treat complex cardiovascular, respiratory, digestive, oncological, neurological and urological diseases and conditions. Learn more at www.bostonscientific.com and connect on LinkedIn and X, formerly Twitter.

Cautionary Statement Regarding Forward-Looking Statements

This press release contains forward-looking statements within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934. Forward-looking statements may be identified by words like “anticipate,” “expect,” “project,” “believe,” “plan,” “estimate,” “intend” and similar words. These forward-looking statements are based on our beliefs, assumptions and estimates using information available to us at the time and are not intended to be guarantees of future events or performance. These forward-looking statements include, among other things, statements regarding our business plans and product performance and impact, and new and anticipated product approvals and launches. If our underlying assumptions turn out to be incorrect, or if certain risks or uncertainties materialize, actual results could vary materially from the expectations and projections expressed or implied by our forward-looking statements. These factors, in some cases, have affected and in the future (together with other factors) could affect our ability to implement our business strategy and may cause actual results to differ materially from those contemplated by the statements expressed in this press release. As a result, readers are cautioned not to place undue reliance on any of our forward-looking statements.

Factors that may cause such differences include, among other things: future economic, competitive, reimbursement and regulatory conditions; manufacturing, distribution and supply chain disruptions and cost increases; variations in outcomes of ongoing and future clinical trials and market studies; new product introductions; demographic trends; intellectual property; litigation; financial market conditions; and future business decisions made by us and our competitors. All of these factors are difficult or impossible to predict accurately and many of them are beyond our control. For a further list and description of these and other important risks and uncertainties that may affect our future operations, see Part I, Item 1A “ Risk Factors in our most recent Annual Report on Form 10-K filed with the Securities and Exchange Commission, which we may update in Part II, Item 1A “ Risk Factors in Quarterly Reports on Form 10-Q we have filed or will file hereafter. We disclaim any intention or obligation to publicly update or revise any forward-looking statements to reflect any change in our expectations or in events, conditions or circumstances on which those expectations may be based, or that may affect the likelihood that actual results will differ from those contained in the forward-looking statements, except as required by law. This cautionary statement is applicable to all forward-looking statements contained in this document.

CONTACTS:Steve Bailey
Media Relations
(651) 582-4343 (office)
Steve.Bailey@bsci.com

Jon Monson
Investor Relations
(508) 683-5450
BSXInvestorRelations@bsci.com

1 Major complications defined as any complication related to the EMPOWER LP or its implantation procedure that results in system revision, permanent loss of LP function, hospitalization, or death.
2 During communication tests, the S-ICD attempted to command the LP to deliver pacing at a rate approximately 10 beats per minute faster than the patient’s intrinsic rhythm.
3 ATP success rate defined as terminating ventricular arrhythmia.

Continue Reading

Stock Markets

Adidas plans cheaper versions of popular shoes

letizo News

Published

on

(Corrects May 16 story to reflect error in live translation, Adidas (OTC:) is making cheaper versions for Deichmann and Intersport, not Foot Locker (NYSE:))

By Linda Pasquini

(Reuters) -Adidas is launching cheaper versions of its three-striped shoes like the white and black suede Samba as it aims to spread the trend, CEO Bjorn Gulden said on Thursday at the company’s annual shareholders’ meeting in Germany.

“It’s important to understand that not everyone can afford to buy a shoe for 120 or 150 [dollars], but everyone wants to take part in the same trends,” Gulden told investors in a presentation in Furth, near Adidas’ headquarters in Herzogenaurach.

Adidas will offer similar versions of the Samba and other shoes for $60 to $80, more affordable entry points than the $100 to $150 price tag for the main shoe lines, according to a presentation slide shown by Gulden.

“What we do at the top, 100 [dollars] and higher, we’re bringing that down,” Gulden said. The cheaper models are aimed at retailers like Deichmann and Intersport, he added.

Continue Reading

Trending

©2021-2024 Letizo All Rights Reserved