Markets Defused gives an easy-to-understand and straightforward recap of the day’s most engaging business and stock market news.
- Adidas outperformed market forecasts
- Novo and Eli Lilly fell on Roche’s weight loss breakthrough
- HSBC revealed its CEO succession
- Klarna eyes a US IPO in 2025
- Johnson & Johnson financials beat expectations
Adidas outperformed market forecasts
adidas AG (OTCQX:ADDYY) shares added around 3% on Wednesday, thanks to upbeat financial results and an upgraded outlook for the rest of 2024. It comes in stark contrast to American rival Nike, which recently issued a profit warning.
Today, the German sportswear firm told investors it now expected operating profit to reach €1 billion this year, after seeing a strong performance in its second quarter. That marked a significant upgrade from a prior forecast of €700 million.
It reported that second-quarter revenues increased around 11% on a constant currency basis – whilst in Euros, it was up 9% to € 5.822bn. Operating profit for the year was up at €346 million, from €176 million a year ago.
Novo Nordisk (NYSE:NVO) and Eli Lilly fell as Roche saw weight loss breakthrough
Novo Nordisk (NYSE:NVO) and Eli Lilly and Co (NYSE:LLY) stock traded lower through Wednesday, under competitive pressure as rival Swiss drug-maker Roche (ROG:SWX) announced early-stage trial success for its experimental oral weight-loss drug, CT-996.
Participants taking the drug lost an average of 7.3% of their body weight over four weeks, Roch announced.
Whilst early stage, it presents a potential additional disruptor in the weight loss market and notably through oral delivery rather than injectable like Novo Nordisk’s Ozempic and Wegovy, or Eli Lilly’s Mounjaro.
It will now continue its trials, with further studies involving participants with both obesity and type 2 diabetes slated for later this year.
HSBC revealed its CEO succession
HSBC Holdings PLC (LSE:HSBA) made headlines in London by announcing its new chief executive, Georges Elhedery, who moves over from the role of CFO to succeed outgoing boss Noel Quinn.
Quinn surprised the market in April when he announced his intention to exit the company in 2025.
Elhedery's appointment follows a thorough succession process which considered both internal and external candidates, the London-listed bank said.
Elhedery has been at HSBC since 2005 and has held several senior positions, before taking up the CFO role in early 2023.
Quinn, meanwhile, is expected to pursue a ‘portfolio career’ after he steps down next April.
Klarna is reportedly advancing to a US IPO in 2025
Klarna, the Swedish fintech that’s pioneered the ‘buy now pay later’ app market in Europe, is now reportedly lining up a stock market float in New York.
The firm is said to be ramping up its IPO plans with the hiring of leading American investment banks – engaging Goldman Sachs, J.P. Morgan Chase, and Morgan Stanley (NYSE:MS) – with a listing potentially occurring in the first half of 2025.
By 2025, it expects to improve on the $6.7 billion valuation obtained in 2022, that’s according to a report in the FT.
Klarna, which is backed by Sequoia Capital, SoftBank, and other venture funders, remains in a growth phase following its major investments and expansion into the US ‘BNPL’ market, and, it has not made a profit since 2019.
Johnson & Johnson (NYSE:JNJ) financials beat expectations
Johnson & Johnson (NYSE:JNJ) stock was up on Wednesday, thanks to second-quarter profit and revenue that exceeded Wall Street estimates.
It reported robust sales of its innovative medicines, including its psoriasis treatment Stelara and cancer treatment Darzalex which increased sales by 3.1% to $2.89 billion and 18.4% to $2.88 billion respectively.
J&J raised its full-year sales guidance to $89.2 billion to $89.6 billion, from the previous range of $88.7 billion to $89.1 billion. But, it earnings (adjusted) per share forecast was lowered to $9.97 to $10.07 from $10.57 to $10.72 accounting for the costs tied to acquisitions such as its $13 billion acquisition of Shockwave Medical.
The company noted that its MedTech division was impacted by supply constraints and competition, particularly for its surgical devices, and it continues to face ongoing legal issues related to its talc products.