TOPS:
Vertiv Holdings (+33%): The American digital infrastructure provider is riding on the artificial intelligence craze. The group, which sells hardware, software and analysis tools to manage data centers and communication networks, has unveiled exceptional quarterly results, with revenues up 23.6% year-on-year and well ahead of estimates. The operating margin (14.5%), operating cash flow and outlook unveiled by management also delighted the markets. BofA raised its opinion on the stock. Carvana (+18%): Continued rebound for the online used car dealer, which will be unloved by the markets in 2022. The troubled group is still benefiting from the renewed interest initiated last week, when it announced that it had reached a restructuring agreement with its creditors to reduce its debt by more than $1.2 billion. The e-commerce platform is also benefiting from a "meme" effect, i.e. share price rises driven by individual investor flows against a backdrop of emotional reactions. The stock has gained over 1000% since the beginning of the year. Domino's (+17%): Solid quarterly results for the UK division of the pizza specialist, with sales up 20%, driven by higher volumes. Earnings, dented by higher costs and interest expenses, remained stable year-on-year. The delivery company also announced that it had reduced its net debt by 27% and raised its annual profit forecasts. The company is the first in the fast-food sector to adopt the Science Based Targets Initiative's Net Zero by 2050 environmental objectives.
Teva Pharmaceutical (+12%): Good news galore for the Nyse-listed Israeli pharma. Second-quarter sales were up 2%, with better-than-expected earnings boosted by higher sales of its Austedo treatment for Huntington's disease. It has therefore raised its outlook for the year. The Group is also making progress in resolving its legal disputes (generic price-fixing and opioid cases), which seems to be reassuring the markets, and on upcoming drug launches.
Bae Systems (+9%): buoyed by record orders and a sharp rise in first-half profits, the British defense and aerospace specialist raised its annual guidance this week. Buoyed by the war in Ukraine, the group reported sales up 11% for the first 6 months of the year. It also announced that its Board of Directors had approved a new £1.5 billion share buyback program over 3 years. Caterpillar (+8%): The American manufacturer of construction equipment is doing well. The group closed a solid quarter, better than expected, buoyed by strong orders in its 3 segments (energy and transport, mining, construction) and by the strength of the US market. Analysts also hail the build-up of dealer inventories as a sign of an expected recovery. Finally, net income almost doubled over the period.
FLOPS:
Zoominfo Technologies (-28%): The US specialist in marketing data and customer relations software (not to be confused with its fellow countryman in videoconferencing) unveiled disappointing results for the quarter just ended, slightly below expectations, and revised its full-year revenue and profit forecasts downwards. Analysts fear that the arrival of generative AI in the sales field will disrupt the Group's activities. In the wake of this, several analysts have reduced their price targets on the stock.
Solaredge (-19%): The American solar panel manufacturer deplores a drop in demand in Europe, but especially in the United States. Since electricity prices have fallen across the Atlantic, investments in solar solutions appear less advantageous. Rising borrowing costs and the recent meter reform in California have also impacted household spending. Finally, the Group has forecast third-quarter sales below Wall Street estimates.
Expedia (-15%): Expedia disappoints. The American travel agency reported quarterly sales slightly below Wall Street forecasts. This announcement cast a pall over the sector, which fears that the strong post-pandemic rebound in tourism will be short-lived. Adjusted quarterly earnings, however, exceeded market expectations.
Paypal (-14%): The American fintech reports solid results in line with expectations, with quarterly sales up 7% to $7.3 billion, but investors are severely punishing the payment solutions provider's declining transaction margin.
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