>>> US After Hours Summary: AMD +7.4%, FRSH +5.4%, SBUX +5.3%, ANET +2.3%, FSLR

After Hours Summary: AMD +7.4%, FRSH +5.4%, SBUX +5.3%, ANET +2.3%, FSLR +2.2% higher on earnings; LMND -16.8%, OI -15.2%, PINS -11.6%, MSFT -3.1% lower on earnings

After Hours Gainers:

Companies trading higher in after hours in reaction to earnings/guidance: POWL +23.5%, ACEL +17.2%, WGS +12.5% (also announces Whole Genome Sequencing product enhancements), MTCH +7.9%, PCRX +7.5%, AMD +7.4%, FRSH +5.4%, SBUX +5.3%, PRO +4.7%, CZR +4.3%, TFSL +3.6%, NOG +2.7%, PDS +2.6%, ANET +2.3%, FSLR +2.2%, QUAD +2%, NMIH +1.5%, QRVO +1.3%, NWE +1.1%, CP +1.1%, LC +1%, MOD +1%, ACGL +0.8%, MDLZ +0.7%, UNM +0.4% (also authorizes new $1 bln share repurchase program), EA +0.3%, WERN +0.3%, OVV +0.2%, UMBF +0.2%, AXS +0.1%, ZWS +0.1%

Companies trading higher in after hours in reaction to news: VST +13.1% (N.R.C. approves request to extend the operation of Comanche Peak), NVDA +3.9% (in sympathy with strong AMD earnings), PSN +2.1% (to acquire BlackSignal Tech for $200 mln), TECX +1.9% (FDA clears IND application for TX45), VVV +1.9% (authorizes new $400 mln share repurchase program), BIIB +1.2% (BIIB and ESAIY announce latest findings for lecanemab-irmb), CYH +0.9% (to sell three Pennsylvania hospitals), INTC +0.9% (planning to cut thousands of jobs, according to Bloomberg; also in sympathy with AMD earnings), UNM +0.4% (authorizes new $1 bln share repurchase program), FICO +0.3% (authorizes new $1 bln share repurchase program)

After Hours Losers:

Companies trading lower in after hours in reaction to earnings/guidance: ESS -24.5%, GRPN -17.3%, LMND -16.8%, OI -15.2%, NARI -13.6% (also CFO to retire, names new CFO), PEN -13.2%, PINS -11.6%, AX -9.1%, BXP -8.6%, DH -8.5%, VOYA -7.4%, WTTR -7.1%, ATEN -7%, TEX -6.8%, TX -6.7%, CRK -6.5%, ATRC -5.4%, AROC -4.9%, STAG -4.4%, INFA -4.2%, PSA -4.1%, WU -4%, SWKS -3.9% (also increases dividend), SYK -3.7%, LYV -3.5%, KAI -3.2%, MSFT -3.1%, FE -3%, DENN -2.6%, DV -1.8%, MEOH -1.7%, SW -1.6%, EQH -1.5%, UDR -1.4%, WPC -1.4%, HA -0.8%, EXR -0.7%, EQC -0.4%, CCCS -0.3%

Companies trading lower in after hours in reaction to news: FGEN -46.6% (announces topline results from two late-stage trials), PEPG -25.1% (data from CONNECT1-EDO51 Phase 2 clinical trial), MGNX -21.7% (MGNX achieves $100 mln in milestones from INCY related to progress of ZYNYZ; also provides Vobramitamab Duocarmazine update), FNA -5.4% (select financial statements should no longer be relied upon), SNAP -4.4% (in sympathy with weak PINS earnings), AWK -2.4% (to acquire Yerba Buena's water distribution system), TRVG -1.9% (acquires 30% equity interest in Holisto), META -1.8% (in sympathy with weak PINS earnings), DDOG -1.4% (in sympathy with weak MSFT results), SNOW -1.4% (in sympathy with weak MSFT results), WAL -1.2% (announces exec leadership and organizational structure changes), AMZN -1.2% (in sympathy with weak MSFT results), NRDS -0.7% (commits to a restructuring plan), GOOG -0.3% (in sympathy with weak PINS earnings)

FT : Prada defies luxury slowdown with surging Miu Miu and Japan sales

Prada defies luxury slowdown with surging Miu Miu and Japan sales
Italian group reports double-digit revenue growth despite pressure elsewhere in industry

Italian luxury fashion group Prada defied a broader luxury sector slowdown as it reported double-digit revenue growth in the first half of the year, fuelled by surging sales at its Miu Miu label and a jump in sales in Japan. 

Net revenues increased 17 per cent to €2.6bn year-on year while retail sales rose 18 per cent to €2.3bn, the company said on Tuesday.

Sales at Miu Miu, the group’s brand that targets a younger generation of consumers, continued a strong run, rising 93 per cent year on year. Those at the group’s main Prada brand grew 6 per cent over the same period. 

In regional terms, Japan was the standout performer with retail sales rising 55 per cent. Sales in the wider Asia Pacific region, which includes China but excludes Japan, rose 12 per cent over the period — although the group said growth had slowed in the second quarter of the year against a “backdrop of a tougher comparison base and increasing spending outside the area”.

The Milan-based group’s earnings are a stark contrast to some other recent earnings in the global luxury industry, which is navigating a sharp downturn as consumers rein in spending.

French conglomerates LVMH and Kering last week led a sell-off in global luxury stocks after both groups reported slower than expected sales. Kering, whose flagship Gucci brand continues to struggle, warned investors to expect a weak second half of the year. 

Prada group chair Patrizio Bertelli struck a more optimistic tone, saying he was “satisfied” with the group’s above market performance and “confident” about its ability “to navigate the months ahead” through continued investments in the business. 

There has been a clutch of some positive results in the sector. Paris-based Hermès last week also defied the luxury downturn to grow sales in the double-digits across all regions, although Asia was the exception. Meanwhile Italy’s Moncler and the Zegna Group reported strong performances with revenues rising 11 per cent and 6 per cent respectively.   

Prada has announced large retail investments this year as it counts on customers returning to physical shops. Chief executive Andrea Guerra said Prada and Miu Miu were “capitalising on their unique identity, creativity, and positioning”.

“In the current macroeconomic and geopolitical context, industry dynamics have become more challenging . . . this requires us to be agile and sharp on our product range, communication and overall positioning, to continue to drive client engagement,” he added.

>>> Goldman Sachs David Solomon CNBC interview (492.72)

Goldman Sachs David Solomon CNBC interview (492.72)
Mr. Solomon said:
  • He comes to Paris regularly and France wants to engage business leaders.
  • 1 or 2 Fed rate cuts this year seems more likely.
  • There is no question inflation is having impact on consumer habits even though the rate of increase has declined.
  • M&A activity expected to pick up.
  • Regulatory issues have been a headwind.
  • Prepared to operate in any outcome of presidential election.

>>> US Gapping down

Gapping down
In reaction to earnings/guidance:
  • SYM -20.6%, LSCC -15.4%, WWD -12.7%, SANM -8.6%, AGCO -8.4%, FMS -7.5%, HOLX -7%, RMBS -6.9% (also expands memory interface chip offering), AMKR -6.9%, DEO -6.4%, GLW -5.7%, HEES -5.3%, TRNS -4.6%, PG -4.2%, CECO -3.2%, WSO -2.4%, LTC -2.1%, SBAC -2%, MRK -2%, FLS -1.9%, PHIN -1.8%, CWK -1.6%, RGEN -1.4%, BRX -1.3%, AEP -1.1%, ADM -0.9%
Other news:
  • CLDX -7.1% (topline results from Barzolvolimab Phase 2 study)
  • RNST -6.8% (to acquire The First Bancshares; files $200 mln stock offering)
  • TERN -3.1% (CFO to depart)
  • GTY -2.5% (pricing of an underwritten public offering of 3,500,000 shares of its common stock at a public offering price of $30.10/share)
  • GABC -2.4% (merger agreement with Heartland BancCorp)
  • RGEN -1.4% (to acquire Tantti)
  • VAL -1% (provides fleet status update)
Analyst comments:
  • ULCC -3.9% (downgraded to Underweight from Neutral at JP Morgan)
  • IART -3.8% (downgraded to Sell from Neutral at Citigroup)
  • GNTX -1.2% (downgraded to Neutral from Outperform at Exane BNP Paribas)

>>> US Gapping up

Gapping up
In reaction to earnings/guidance:
  • SFM +17.4%, HLIT +15.7%, FFIV +13.7%, VRNS +10.6%, DAWN +9.5%, TLRY +8.7%, NMR +7.2%, HWM +7.1%, BYON +7%, PYPL +5.9%, PLOW +5.7%, SWK +5.6%, CORT +5.3%, NEOG +5.3%, LDOS +5.2%, ZBRA +4.6%, CDP +4.4%, JBLU +4.2%, PJT +3%, PSX +2.6%, SPGI +2.5%, AMT +2.4%, HAYW +1.9%, CNP +1.7%, STNG +1.6%, SOFI +1.5%, INCY +1.5%, NEO +1.4%, IT +1.4%, ST +1.3%, BP +1.3%, WELL +1.1%, PFE +1%, XYL +1%, AUDC +0.9%
Other news:
  • GUTS +10.8% (FDA breakthrough device designation for revita in weight maintenance for people with obesity who discontinue GLP-1 based drugs)
  • DRVN +5.7% (Closes $275 Million Securitization Issuance to Refinance Existing Debt)
  • FEIM +4.2% (to delay 10-K filing)
  • VSTO +3.9% (announces that its Board of Directors has commenced a review of strategic alternatives)
  • VSTM +3.6% (FDA orphan drug designation for avutometinib and defactinib)
  • NVO +2.7% (Older GLP-1 drugs might help protect brains of patients with early Alzheimer's disease, according to Stat News)
  • ALGM +2.1% (repurchases shares held by Sanken Electric)
  • BNTX +1.6% (topline data from the ongoing Phase 2 clinical trial in patients with unresectable stage III or IV melanoma whose disease had progressed following anti-PD-(L)1-containing treatment)
  • NTLA +1.5% (authorization of its Clinical Trial Application by the United Kingdom's Medicine and Healthcare products Regulatory Agency to initiate a Phase 1/2 study evaluating NTLA-3001)
  • SD +1.2% (to acquire assets in Western Anadarko basin for $144 mln)
  • AMRX +1.2% (FDA approval for potassium phosphates injection IV Bags)
Analyst comments:
  • AFRM +4.9% (upgraded to Buy from Neutral at BofA Securities)
  • ASML +2.5% (upgraded to Overweight from Equal Weight at Barclays)
  • BV +1.9% (upgraded to Outperform from Neutral at Robert Baird)
  • COLL +1.5% (upgraded to Buy from Neutral at H.C. Wainwright)

>>> Europe : Brokers Upgrades & Downgrades - 30th of July 2024 V3(++)

>>> Up
* ASML Raised to Overweight at Barclays; PT 1,150 euros
* Atea Raised to Buy at Arctic Securities; PT 160 kroner
* BE Semiconductor Raised to Hold at Bank Degroof Petercam (+)
* Citigroup PT Raised to $79 from $66 at Morgan Stanley
* Clariant Raised to Buy at Stifel; PT 16.20 Swiss francs (+)
* ConvaTec Raised to Buy at Investec; PT 307 pence (+)
* Ekinops SAS Raised to Buy at Gilbert Dupont; PT 4.30 euros (+)
* Eni Raised to Buy at HSBC; PT 16.50 euros
* Euronext PT Raised to 117 euros from 113 euros at Morgan Stanley
* Goldman Sachs PT Raised to $561 from $513 at Morgan Stanley
* Hexagon Raised to Accumulate at Inderes; PT 115 kronor
* Knorr-Bremse Raised to Hold at Hauck & Aufhaeuser (+)
* Novavis Group Raised to Buy at Erste Group; PT 3.29 zloty
* Royal Caribbean PT Raised to $180 from $160 at Susquehanna
* Salmar Raised to Buy at SEB Equities; PT 673 kroner
* Sandoz Group PT Raised to 46 Swiss francs at Intron Health (+)
* SGS PT Raised to 106 Swiss francs from 93 Swiss francs at Citi
* SMCP Raised to Outperform at Oddo BHF; PT 5.60 euros
* UCB PT Raised to 200 euros from 150 euros at Deutsche Bank (+)
* Virbac Raised to Buy at TP ICAP Midcap; PT 389 euros (+)
* Volution PT Raised to 600 pence from 510 pence at Jefferies

>>> Down
* Abbott Cut to Hold at Edward Jones
* Basic-Fit Cut to Hold at Berenberg; PT 26 euros
* DBT SACA Cut to Speculative Buy at Greensome Finance (+)
* Howden Joinery Cut to Sector Perform at RBC; PT 980 pence
* ING Cut to Market Perform at KBW; PT 18.50 euros
* Lloyds Cut to Neutral at UBS (++)
* Man Group Cut to Hold at Deutsche Bank
* Meier Tobler Cut to Hold at Research Partners (+)
* Novavax Cut to Underweight at JPMorgan; PT $8
* Oxford Nanopore Cut to Sell at Stifel; PT 100 pence (+)
* Piaggio Cut to Accumulate at Banca Akros (ESN) (+)
* SThree Cut to Hold at HSBC; PT 445 pence
* Vocento Cut to Underperform at Grupo Santander; PT 75 euro cents (+)
* XSpray Pharma Cut to Hold at Pareto Securities; PT 58 kronor

>>> Initiation
* Andfjord Salmon Group Reinstated Buy at Arctic Securities
* Dialight Rated New Hold at Investec; PT 210 pence (+)
* Givaudan Rated New Neutral at Oddo BHF; PT 4,200 Swiss francs (+)
* Sartorius Rated New Underperform at Bernstein
* Sartorius Stedim Rated New Underperform at Bernstein

>>> Call
* Basic-Fit Cut at Berenberg, Risks Balanced Over Short Term
* Flutter Gets Positive Catalyst Watch at Citi Ahead of Results
* Hedge Funds Selling Industrials at a Record Pace, Goldman Says
* Man Group Downgraded on Weakening Performance: Deutsche Bank (+)
* SMCP Upgraded at Oddo BHF, May Be Light at End of the Tunnel
* Yen Has Scope to Rally to 145/$ on a BOJ ‘Hawkish Pivot’: BofA