Daily Market Report | Nov. 05, 2020

US FINANCIAL MARKET

Stocks Climb, Extending Biggest Weekly Rally Since April – Wall Street Journal, 11/5/20

  • U.S. stocks surged Thursday, on track to extend their sharpest weekly rally since April, as investors cheered the prospect of curbs on new regulations and diminished chances of higher taxes under a split Congress.
  • Democratic candidate Joe Biden is within striking distance of the presidency, potentially bringing to an end weeks of uncertainty about the U.S. election that has weighed on markets.
  • Republicans have won enough seats to potentially retain control of the Senate, while Democrats appear poised to hold on to the House.
  • Investors are betting that with a divided government, Mr. Biden would have difficulty passing legislation aimed at regulating technology companies and raising corporate taxes.
  • There is also speculation that there will be additional coronavirus-relief spending from the government to help bolster the economy, albeit a smaller package than a Democratic-sweep would have enabled.
  • If control of the Senate remains in Republican hands, that would especially help curtail any efforts to introduce fresh regulations on the technology industry, investors said.
  • While both Democrats and Republicans have said tech companies have too much power and antitrust authorities should move to curb it, they disagree on how to rein in the companies.
  • Earlier in the day, U.S. jobless claims data showed that about 751,000 Americans applied for unemployment benefits for the first time in the week ended Oct. 31, down from a revised 758,000 in the week prior.
  • U.S. jobless claims have been trending lower in recent weeks but remain at historically high levels.

Coronavirus Live Updates: U.S. Daily Cases Top 100,000 for First Time – Wall Street Journal, 11/5/20

  • Infections rose in states across the U.S. as the country reported more than 100,000 new coronavirus cases in a single day for the first time.
  • The nation recorded more than 102,800 new cases for Wednesday, surpassing a record of more than 99,000 set on Oct. 30, according to data compiled by Johns Hopkins University.
  • Across the country, several states reported record tallies of daily infections, including Indiana, Minnesota, Iowa, Colorado and Idaho. Pennsylvania reported more than 2,800 new cases for the third day in a row on Wednesday after setting a record on Tuesday.
  • The nation’s seven-day moving average of newly reported cases, which helps smooth out irregularities in the data, rose to 89,859 as of Wednesday, the latest in a series of record highs.
  • More than 52,000 people in the U.S. are now hospitalized due to Covid-19, the highest number since Aug. 6, which was the second day in a row the figure topped 50,000, according to the Covid Tracking project.
  • The nation reported more than 1,000 deaths from Covid-19 for the second day in a row on Wednesday. The figure was slightly lower than the more than 1,100 fatalities reported Tuesday, but higher than the 991 deaths reported a week earlier, according to Johns Hopkins.

AstraZeneca Expects Covid-19 Vaccine Trial Results This Year – Wall street Journal, 11/5/20

  • AstraZeneca said late-stage trials for the Covid-19 vaccine it is developing with the University of Oxford are on track to produce results “later this year,” with a potential rollout soon after, subject to regulatory approval.
  • Timing of the much-anticipated results depends on community infection rates around the world, with around 23,000 volunteers now enrolled in clinical trials of the vaccine in the U.S., the U.K., Brazil and South Africa, the British drugmaker said Thursday as it reported third-quarter earnings.
  • AstraZeneca said net profit for the quarter was $648 million compared with $299 million for the same period last year.
  • Total revenue came in at $6.58 billion, up from $6.41 billion.
  • AstraZeneca said it is on track to meet its full-year guidance, expecting total revenue to grow by between a high single-digit and a low double-digit percentage, and core earnings per share to increase by a mid-to-high-teens percentage.

GM profit beat driven by strength in trucks, SUVs and China rebound – Reuters, 11/5/20

  • General Motors posted a stronger-than-expected quarterly profit on Thursday, driven by renewed demand for trucks and SUVs in the United States and China sales, sending its shares higher in premarket trading.
  • GM’s U.S. sales in the third quarter fell 10% due to the pandemic, but results improved each month.
  • In China, GM’s sales in the quarter rose 12%, its first quarterly sales growth in two years.
  • The company’s EBIT-adjusted margin in North America jumped 6.5 points to 14.9% in the quarter, reflecting the strength of its high-margin pickups and SUVs.
  • The Detroit automaker reported net income of $4 billion, or $2.78 a share in the quarter, compared with $2.35 billion, or $1.60 a share, a year earlier.

Qualcomm forecasts strong first quarter as Apple, others ramp up 5G phones – Reuters, 11/4/20

  • Qualcomm forecast fiscal first-quarter revenue above Wall Street estimates on Wednesday as it predicted sales of 5G smart phones would balloon to more than half a billion units next year, powered in part by new Apple iPhone 12 models.
  • Revenue from the company’s chip segment, its largest by sales, was $4.97 billion in the fiscal fourth quarter, compared with FactSet estimates of $4.59 billion.
  • Qualcomm said it shipped 162 million chips capable of wireless data connections during its fiscal fourth quarter, compared with FactSet estimates of 155.3 million.
  • Based on the shipments, the average selling price for chips was $30.9, higher than $29.3 in the previous quarter.
  • Qualcomm expects chip segment revenue in the range of $6.2 billion to $6.8 billion for the unit during the first quarter, ahead of FactSet estimates of $5.71 billion.
  • The company said it expects overall current-quarter revenue of between $7.8 billion and $8.6 billion, compared with analysts’ estimates of $7.15 billion, according to IBES data from Refinitiv.
  • Mollenkopf told Reuters the company expects overall 5G handset shipments this calendar year to come in at the top of the company’s expected range of 175 million to 225 million units.
  • The company also raised its forecast for 5G handset shipments for 2021 to a midpoint of 500 million units.

Expedia swings to quarterly loss as COVID-19 batters demand – Reuters, 11/4/20

  • Online travel agency Expedia posted a third straight quarterly loss on Wednesday, hurt by a slump in bookings due to the COVID-19 pandemic.
  • Expedia’s third-quarter gross bookings fell 68% to $8.63 billion, and revenue fell 58% to $1.50 billion.
  • Net loss attributable to the company stood at $221 million, or $1.56 per share, in the third quarter ended Sept. 30, compared with a profit of $409 million, or $2.71 per share, a year earlier.

Regeneron beats profit estimates as easing curbs lift eye drug sales – Reuters, 11/5/20

  • Regeneron Pharmaceuticals surged past analysts’ estimates for quarterly profit on Thursday, as easing lockdowns allowed patients to resume visits to the doctor’s offices and boosted sales of its eye drug.
  • Total revenue rose 31.6% to $2.29 billion, also beating estimates of $2.09 billion, according to IBES data from Refinitiv.
  • Sales of Eylea, its blockbuster eye treatment, rose to $2.10 billion in the third quarter, topping estimates of $1.75 billion, according to four analysts polled by Refinitiv.
  • Sales of Dupixent, used to treat eczema and asthma, surged 69.4% to $1.07 billion, inching past estimates of $1.06 billion.
  • Net profit rose to $842.1 million, or $7.39 per share, in the three months ended Sept. 30, from $669.6 million, or $5.86 per share, a year earlier.

Cigna beats profit estimates on pharmacy benefits strength, raises FY sales view – Reuters, 11/5/20

  • Cigna beat estimates for quarterly profit on Thursday and raised its full-year sales forecast, driven by higher sales in its newly revamped health services unit that mainly houses its pharmacy benefits management business.
  • Adjusted revenue rose to $40.80 billion, ahead of $39.18 billion expected by analysts.
  • Adjusted revenue from Evernorth rose about 20% to $29.83 billion in the third-quarter, driven by a 22% jump in adjusted pharmacy prescription volumes.
  • Cigna’s medical care ratio – the amount spent on medical claims versus the income from premiums – worsened to 82.6% in the quarter from 80.5% a year ago, as demand began to normalize for elective healthcare services that were postponed during the height of the pandemic.
  • Excluding items, Cigna earned $4.41 per share, beating the average analyst estimate of $4.24, according to IBES data from Refinitiv.
  • The company raised its 2020 revenue forecast to about $158 billion, from its previous outlook of $154 billion to $156 billion.
  • It also raised the lower end of its adjusted profit expectations, forecasting full-year adjusted earnings of $18.30 to $18.60 per share, compared with the previous $18.00 to $18.60.

Zynga bookings forecast tops estimates as stay-at-home gamers drive spending – Reuters, 11/4/20

  • Zynga forecast holiday-quarter bookings above Wall Street expectations after the mobile game publisher topped third-quarter estimates on Wednesday, as stay-at-home gamers drive spending on mobile games.
  • The company’s third-quarter bookings rose 59% to $628 million from a year earlier, and topped estimates of $625.7 million.
  • Zynga forecast fourth-quarter bookings of $670 million, above analysts’ average estimate of $651.6 million, according to IBES data from Refinitiv.
  • The company, known for mobile games such as “Empires & Puzzles” and “Merge Dragons!” also raised its full-year bookings forecast to $2.24 billion from $2.2 billion, compared with estimates of $2.22 billion.

Marathon Oil posts fourth straight quarterly loss on virus hit – Reuters, 11/4/20

  • U.S. shale producer Marathon Oil reported a fourth straight quarterly loss on Wednesday, as the COVID-19 pandemic hammered demand for fuel and dented crude prices.
  • The company’s total net production fell to 370,000 barrels of oil equivalent per day (boepd), from 426,000 boepd a year earlier.
  • Marathon reported a loss of $317 million, or 40 cents per share, for the quarter ended Sept. 30, compared to a profit of $165 million, or 21 cents per share, a year earlier.
  • U.S. oil prices have plunged 38% this year as the virus outbreak led to grounding of flights and brought economies to a standstill, but with the easing of coronavirus-induced curbs, demand has begun to pick up and crude prices have rebounded from historic lows.

Oil producer Apache posts smaller loss, accelerates cost cuts – Reuters, 11/4/20

  • U.S. oil producer Apache reported a smaller third-quarter loss on Wednesday that beat analysts’ estimates, and said capital spending this year would be at the low end of its plan.
  • The company posted a loss attributable to common stock of $4 million, or 2 cents per share, for the quarter ended Sept. 30, compared with a loss of $170 million, or 45 cents per share, a year earlier.
  • Apache forecast fourth-quarter production would fall 10% to 355,000 barrels of oil and gas per day, from 394,000 in the quarter ended Sept. 30.
  • Fourth-quarter capital spending will be $200 million, bringing the total for the year to $1 billion, from an original budget of as much as $1.9 billion.
  • Next year’s project spending will be $1 billion or lower, and weighted heavily toward promising oil discoveries off the northeastern coast of South America’s Suriname, said Chief Executive Officer John Christmann.

Pioneer Natural misses profit estimates on shale slump – Reuters, 11/4/20

  • Oil and gas producer Pioneer Natural Resources reported a lower-than-expected quarterly profit on Wednesday, as the COVID-19 pandemic muted fuel demand and hit crude prices.
  • Pioneer said its average realized price fell 27% to $39.22 per barrel in the third quarter, while average sales volume totaled 354,968 barrels of oil equivalent per day (boepd), compared with 350,725 boepd a year earlier.
  • Net loss attributable to common shareholders was $20 million, or $0.12 per share, in the third quarter ended Sept. 30, compared with a profit of $231 million, or $1.38 per share, a year earlier.
  • However, the producer raised its annual production outlook to between 365,000 boepd and 369000 boepd, from its previous estimate of 356,000 boepd-371,000 boepd.

Albemarle forecasts full-year profit above estimates – Reuters, 11/4/20

  • Lithium miner Albemarle forecast full-year profit above estimates on Wednesday, but warned that the company’s annual performance will be subdued, following reduced global economic activity due to the global pandemic.
  • Net income attributable to the company fell to $98.3 million, or 92 cents per share, in the quarter ended Sept. 30, from $155.1 million, or $1.46 per share, a year earlier.
  • The company said it expects full-year net sales to be between $3.05 billion and $3.15 billion.
  • Albemarle forecast annual adjusted earnings between $3.80 and $4.15 per share, compared with analysts’ estimates of $3.52 per share, according to Refinitiv IBES data.

Digital subscription growth powers New York Times profit beat – Reuters, 11/5/20

  • The New York Times reported better-than-expected results on Thursday as revenue from digital-only sign-ups surpassed print subscription revenue for the first time in a quarter dominated by news related to the COVID-19 pandemic and the U.S. presidential election.
  • Total revenue slipped 0.4% to $426.9 million, but came in above analysts’ estimates of $411.8 million, according to IBES data from Refinitiv.
  • Revenue from subscription rose 12.6% to $300.95 million in the third quarter, while ad revenue dropped 30.2% to $79.25 million.
  • New York Times said it added 393,000 paid digital-only subscribers during the quarter.
  • Excluding items, the company earned 22 cents per share, beating analysts’ estimates of 11 cents.
  • The media company said it expects digital-only subscription revenue to rise about 35% and ad sales to decline about 30% in the fourth quarter.

Becton Dickinson beats profit estimates on strong demand for COVID-19 tests – Reuters, 11/5/20

  • Becton Dickinson beat quarterly profit estimates on Thursday and forecast full-year revenue growth in the range of high-single to low-double digits, as the medical device maker benefits from strong demand for its COVID-19 diagnostic tests.
  • Fourth-quarter revenues grew 4.4% to $4.78 billion, above the average analyst estimate of $4.48 billion.
  • Becton’s COVID-19 testing sales totaled more than $440 million in the fourth quarter, while rival Abbott Laboratories’ tests brought in $881 million in sales in the most recent reported quarter.
  • Net profit attributable to shareholders was $105 million, or 36 cents per share, in the quarter ended Sept. 30, compared to net earnings of $125 million, or 45 cents per share, last year.
  • Becton forecast adjusted earnings per share of between $12.40 and $12.60 for 2021, while analysts were expecting a profit of $12.53, according to Refinitiv IBES data.

Corteva posts smaller-than-expected loss, accelerates buyback timeline – Reuters, 11/4/20

  • Corteva on Wednesday reported a smaller-than-expected loss, primarily on the back of cost cuts, and accelerated the timeline for its share buyback program.
  • Corteva, which reaffirmed its 2020 guidance, said higher volume and price of new products such as Arylex herbicide, Spinosyns insecticide, and Inatreq fungicide helped boost third-quarter organic sales by 9% to $2.07 billion.
  • However, seed volumes fell 14% on an organic basis in the quarter due to a stronger year-ago quarter as weather conditions last year had delayed some sales into the back half.
  • Corteva’s operating loss before interest, tax, depreciation and amortization was $179 million, compared to a loss of $207 million a year earlier.

US ECONOMY & POLITICS

Biden edges closer to U.S. election win as Trump mounts legal challenges – Reuters, 11/5/20

  • Democrat Joe Biden edged closer to victory over President Donald Trump in the U.S. presidential race on Thursday as election officials tallied votes in the handful of states that will determine the outcome.
  • As counting continued two days after Election Day, slowed by large numbers of mail-in ballots this year, Biden was leading in Wisconsin, Nevada and Arizona and closing in on Trump in Georgia and Pennsylvania.
  • Multiple Trump lawsuits and a recount request would have to succeed and find in some cases tens of thousands of invalid ballots to reverse the result if Biden does prevail.
  • Trump had to win the states where he was still ahead, including North Carolina, plus either Arizona or Nevada to triumph and avoid becoming the first incumbent U.S. president to lose a re-election bid since fellow Republican George H.W. Bush in 1992.
  • Trump’s campaign called for a recount in Wisconsin, where Biden led by roughly 21,000 votes out of 3.3 million cast, a margin slim enough to entitle him to a recount.
  • His campaign also filed lawsuits in Michigan and Pennsylvania to stop vote counting.
  • Michigan Secretary of State Jocelyn Benson, in charge of elections, called the Trump team’s lawsuit “frivolous.”
  • Trump’s campaign said it planned to make an announcement in Las Vegas later on Thursday.
  • Fox News reported the campaign would announce another lawsuit, this one alleging voter fraud in Nevada.

Senate Control Hinges on Four Uncalled Election Results With Republicans Holding Edge – Wall Street Journal, 11/5/20

  • Senate Republicans, facing a Democratic offensive, won enough of their Tuesday re-elections to diminish any chance that Democrats could pick up enough seats to take control of the Senate.
  • Their political prospects brightened on Wednesday when GOP Sen. Susan Collins of Maine defeated Democrat Sara Gideon in her toughest re-election race. Her victory and that of Sen. Joni Ernst of Iowa minimized the party’s losses elsewhere and eased the way for a Republican majority to hold the chamber for two more years.
  • Republicans hold a 53-47 advantage in the Senate. Democrats need to flip four seats to take the majority if President Trump is re-elected, or three if Democratic nominee Joe Biden wins the presidency and his vice president casts tiebreaking votes.
  • In Alaska, Republican Dan Sullivan is ahead and expected to win, although the state’s schedule for counting absentee ballots could delay the result. Besides Alaska, two additional races, one in North Carolina and one in Georgia, remain uncalled.
  • A second Senate seat in Georgia was called without a winner. Republican Sen. Kelly Loeffler fell well short of the 50%-plus-one threshold needed to hold her seat in Georgia and is now headed into a Jan. 5 runoff election against Democrat Raphael Warnock, according to the AP projections.

Tight House Races Leave Size of Democrats’ Majority Uncertain – Wall Street Journal, 11/4/20

  • Republicans were on track to shrink House Democrats’ majority Wednesday as GOP victories in the suburbs piled up.
  • By Wednesday, Republicans had defeated at least six Democratic freshmen, as well as a longtime Democratic lawmaker in a conservative district.
  • Although Democrats were leading in a few seats where vote counting had not yet been completed, they looked likely to lose some of their current comfortable 232-197 majority.
  • Nonpartisan experts who had estimated Democrats could pick up more than 10 seats before the voting reversed that Wednesday, saying Republicans would likely end up flipping between 7 and 12 seats.

Republicans Hold Off Democratic Bid to Flip State Legislatures – Wall Street Journal, 11/5/20

  • Democrats have come up short in their bid to flip control of several state legislative chambers this year and gain power in a coming round of redistricting.
  • As of late Wednesday, Republicans had flipped control of two chambers, the New Hampshire state House and Senate, according to the nonpartisan National Conference of State Legislatures. Arizona’s state Senate and House were too close to call.
  • Of the 98 partisan chambers, Republicans will control at least 59 next year. (Nebraska has a nonpartisan, unicameral Legislature.)
  • Republicans will control both legislative chambers in 24 of the 36 states in which legislatures draw district lines for U.S. Congress, the state legislature itself, or both, according to the conference.

McConnell Says Congress Should Pass Economic Relief Bill This Year – Wall Street Journal, 11/5/20

  • Congress should pass a new economic-relief package this year, Senate Majority Leader Mitch McConnell said on Wednesday, as prospects for Democrats’ multitrillion-dollar stimulus bill faded along with their chances for full control of the government.
  • “We need another rescue package,” Mr. McConnell said in Kentucky. “Hopefully the partisan passions that prevented us from doing another rescue package will subside with the election. We need to do it, and I think we need to do it before the end of the year.”
  • Mr. McConnell said he would support including more funding for schools, hospitals and a popular small-business loan program, but not a more sweeping proposal that Democrats have sought.
  • House Minority Leader Kevin McCarthy (R., Calif.) said in an interview Wednesday that Republicans’ likely gains in the House and likely continued control of the Senate would shift power away from Mrs. Pelosi in coming negotiations.

U.S. Unemployment Claims Held Nearly Steady Last Week – Wall Street Journal, 11/5/20

  • New applications for unemployment benefits held nearly steady last week, an indication that layoffs stabilized at an elevated level as virus cases surged in several states.
  • Weekly initial claims for jobless benefits fell by 7,000 to a seasonally adjusted 751,000 in the week ended Oct. 31, the Labor Department said Thursday.
  • The number of people collecting unemployment benefits through regular state programs, which cover most workers, decreased by 538,000 to about 7.3 million for the week ended Oct. 24.
  • Thursday’s report from the Labor Department provides data on regular state programs—which have served as an economic bellwether for a half-century—as well as details from two pandemic-specific programs first implemented in March.
  • The larger of those programs—available to the self-employed, gig workers and others not typically eligible for unemployment aid—paid benefits to about 10 million workers in early October, according to the Labor Department.
  • A second pandemic program pays 13 additional weeks of benefits to individuals who have exhausted regular unemployment benefits. Enrollment in that program moved higher in recent weeks, topping three million last month.

EUROPE & WORLD

Bank of England Boosts Stimulus as U.K. Battles Second Wave of Covid-19 – Wall Street Journal, 11/5/20

  • The Bank of England announced another dose of bond purchases, becoming the first major central bank in Europe to boost stimulus measures in response to a second wave of coronavirus infections.
  • The BOE’s Monetary Policy Committee agreed Thursday to another £150 billion of U.K. government bond purchases, equivalent to $195 billion.
  • It takes the overall size of the BOE’s portfolio of government and corporate assets to £895 billion.
  • Officials voted to keep the central bank’s benchmark interest rate at 0.1%.
  • The European Central Bank has signaled that it is also readying more stimulus for as soon as next month, as countries including France and Germany close parts of their economies to halt the rise in infections.

Alibaba beats sales forecasts on China e-commerce growth – Reuters, 11/5/20

  • Alibaba Group beat third quarterly revenue estimates on Thursday, driven by e-commerce growth after China emerged from coronavirus lockdowns, and said it was assessing the suspension of its affiliate Ant Group’s listing.
  • Revenue rose 30% to 155.06 billion yuan in the quarter ended Sept. 30, compared to estimates of 154.74 yuan, according to IBES data from Refinitiv.
  • Revenue at Alibaba’s cloud computing business, a focus area for the company, jumped 60% to 14.9 billion yuan, while sales from its core e-commerce business rose 29% to 130.92 billion yuan in the reported quarter.
  • Net income fell 63% to 26.52 billion yuan, as Alibaba had booked a one-off gain last year from its 33% stake in Ant Group.
  • Alibaba Chief Executive Daniel Zhang said during an earnings call that added that Alibaba is “actively evaluating” the impact of the Ant Group IPO’s suspension on its business and will “take appropriate measures accordingly”.

MercadoLibre beats estimates on pandemic-driven online shopping boost – Reuters, 11/4/20

  • MercadoLibre, Latin America’s top e-commerce firm, reported better-than-expected third-quarter revenue and profit on Wednesday, helped by a surge in online shopping and digital payment transactions during the COVID-19 pandemic.
  • Revenue rose 85% to $1.12 billion in the quarter, much above analysts’ average estimate of $972.31 million.
  • The company said its unique active users nearly doubled to 76.1 million and payments transaction on the platform of Mercado Pago, the finance arm of MercadoLibre, surged about 147% to 559.7 million in the third quarter.
  • MercadoLibre reported net income of $15 million, or 28 cents per share, for the quarter ended Sept. 30, compared with a net loss of $146.1 million, or $2.96 per share, a year earlier.

Nintendo raises Switch forecast to 24 million units on pandemic gaming boom – Reuters, 11/4/20

  • Japan’s Nintendo on Thursday said it expects to sell 24 million of its Switch games consoles in the year ending March 2021, up from a forecast of 19 million but still seen as cautious, as the COVID-19 pandemic drives a gaming boom.
  • Nintendo said it sold 12.5 million Switch devices in the first half of the financial year, comprising 8.4 million hybrid home-portable Switch consoles and 4.2 million portable-only Switch Lite devices.
  • Operating profit for July-September alone more than doubled from the same period a year earlier to 147 billion yen, Reuters calculations showed, with Nintendo reporting first-half operating earnings were 291 million yen.
  • The Kyoto-based gaming company also hiked its operating profit forecast by 50% to 450 billion yen ($4.3 billion) as titles such as “Animal Crossing: New Horizons” bring new consumers to the Switch in its fourth year on the market.

ArcelorMittal beats profit expectations after lockdown low – Reuters, 11/4/20

  • ArcelorMittal, the world’s largest steelmaker, reported third-quarter core profit above expectations on Thursday as the easing of COVID-19 lockdowns led to improved demand in all regions.
  • The company, which makes around 5% of the world’s steel, said core profit (EBITDA) fell 15% from a year earlier to $901 million, compared with an average expectation of $838 million in a company-compiled poll.
  • CEO Lakshmi Mittal said in a statement that steel markets had recovered from a very challenging second quarter, with particular improvement in profits in Brazil and its unit grouping South Africa, Kazakhstan and Ukraine.
  • The company said its mining business also fared better, with higher iron ore prices and increased production. It now expects iron ore shipments sold at market prices to be about the same as in 2019. It had previously forecast a 5% decline.
  • ArcelorMittal said it had begun to restart some of its idled capacity, although demand remained below normal, with a second COVID-19 wave adding to uncertainty.

Teva Pharm third-quarter profit in line with forecasts, tweaks 2020 outlook – Reuters, 11/5/20

  • Israel-based Teva Pharmaceutical Industries reported on Thursday unchanged third-quarter profit that was in line with forecasts and slightly lowered its 2020 revenue outlook as the COVID-19 pandemic subdued demand for some of its generic drugs.
  • Revenue fell 3% to $3.98 billion, mainly due to lower revenue from generic drugs, over-the-counter products and its branded multiple sclerosis treatment Copaxone as well as reduced demand for certain products resulting from the COVID-19 pandemic.
  • This was partially offset by higher sales of its migraine product Ajovy and of Austedo, its treatment for Huntington’s disease.
  • The world’s largest generic drugmaker earned 58 cents per diluted share excluding one-time items in the July-September period, unchanged from a year earlier. Analysts had forecast Teva would earn 58 cents a share ex-items on revenue of $4.07 billion, according to I/B/E/S data from Refinitiv.
  • It revised its 2020 forecast to adjusted EPS of $2.40-$2.55 and revenue of $16.5-$16.8 billion. Its previous outlook was for EPS of $2.30-$2.55 and revenue of $16.6-$17.0 billion.

Bombardier sees higher Global 7500 jet deliveries in fourth quarter, after reporting earnings miss – Reuters, 11/5/20

  • Bombardier expects higher deliveries of its flagship Global 7500 business jet through year’s end, after the plane and train maker missed estimates for third-quarter operating profit on Thursday, hurt by COVID-19-related disruptions.
  • Revenue fell 5.3% to $3.53 billion.
  • Revenue from Bombardier’s transportation unit fell 2.5%, hit by the pandemic and several-low margin projects.
  • Corporate jet deliveries fell to 24 units in the quarter from 31 a year earlier. But revenue from business aircraft rose about 10% since higher-priced Global 7500s made up a third of deliveries.
  • The company’s business aircraft order backlog, however, declined to $12.2 billion from $14.4 billion a year ago.
  • Bombardier reported adjusted EBITDA of $176 million for the quarter ended Sept. 30, compared with $255 million a year earlier. Analysts on average were expecting EBITDA to be $179.8 million, according to Refinitiv data.
  • Global 7500 deliveries should rise to 12 jets during the last three months of 2020, up from eight during the third quarter.

Canada Goose posts surprise profit on strong online, China demand – Reuters, 11/5/20

  • Canada Goose Holdings posted a surprise quarterly profit and beat revenue estimates on Thursday, as higher online sales and strong demand for its $1,000 parkas in China helped the company cushion a hit from its weak wholesale business.
  • Revenue fell about 34% to C$194.8 million ($148.52 million), but beat the average analyst estimate of C$167.2 million, according to IBES data from Refinitiv.
  • The company’s overall online revenue increased more than 10% in the second quarter ended Sept. 27, while its wholesale revenue nearly halved due to pressure at its partners, including department stores, due to the pandemic.
  • Canada Goose said its direct-to-consumer revenue jumped over 30% in Mainland China, where shoppers are known to splurge on luxury goods.
  • Excluding items, Toronto, Ontario-based Canada Goose earned 10 Canadian cents per share. Analysts were expecting a loss of 1 Canadian cent.

Factmonster – TODAY in HISTORY

  • The Gunpowder Plot to blow up the English Parliament failed. (1605)
  • Susan B. Anthony was fined $100 for trying to vote in the presidential election (she was trying to vote for President Grant). (1872)
  • President Franklin D. Roosevelt won an unprecedented third term in office when he defeated Wendell L. Willkie. (1940)

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