>>> US After Hours Summary: NXT +18.2%, CMPR +13%, ALGN +10.7%, RYN +5.8%, QRVO

After Hours Summary: NXT +18.2%, CMPR +13%, ALGN +10.7%, RYN +5.8%, QRVO +4.9% higher on earnings; MXL -11.1%, CNMD -9.6%, QCOM -1.4% lower on earnings

After Hours Gainers:

Companies trading higher in after hours in reaction to earnings/guidance: NXT +18.2%, CMPR +13%, ALGN +10.7%, RYN +5.8%, QRVO +4.9% (also to acquire Anokiwave), EZPW +4.7%, CTVA +4.5%, NYCB +3.5%, CACC +2.4%, FLEX +1.5%, BOOT +1.2%, AXS +0.3%, CLB +0.2%, BHE +0.1%

Companies trading higher in after hours in reaction to news: PTGX +8% (PTGX and TAK enter into license and collaboration deal), AMPS +5.7% (acquires 84MW portfolio from Vitol), NTLA +3.7% (announces publication of interim Phase 1 Data for NTLA-2002), BTBT +2.3% (expands mining fleet; finalizes deal for 6 MW of incremental hosting capacity), PARA +2.1% (taking initial steps toward possible sale, according to NY Post), FUN +1.4% (SEC declares effective FUN's Registration Statement in connection with SIX merger), UFI +0.5% (begins implementing profitability improvement plan), BRBR +0.3% (Exec Chairman ends medical leave and resumes full duties), UTL +0.1% (increases dividend), CF +0.1% (increases dividend), SIX +0.1% (SEC declares effective FUN's Registration Statement in connection with SIX merger)

After Hours Losers:

Companies trading lower in after hours in reaction to earnings/guidance: MXL -11.1%, CNMD -9.6%, BV -7.2%, CHRW -6.1%, SIGI -5.9%, CVGW -4.2%, WOLF -4.1%, MTH -3.4%, MET -3.3%, AVB -2.9% (also increases dividend), PTC -2.6%, AFL -2.1%, EGHT -1.8%, QCOM -1.4%, NTGR -1.4%, CCS -0.8%, MTG -0.8%, MEOH -0.7%, MKL -0.6%, TTEK -0.3%, UGI -0.2%, THG -0.1%

Companies trading lower in after hours in reaction to news: RKLB -8.5% ($275 mln convertible notes offering), ZCAR -3.4% (introduces new product category with 50% lower pricing), TAK -1.6% (PTGX and TAK enter into license and collaboration deal), NTGR -1.4% (CEO to retire, names new CEO; also narrows its Q4 revenue guidance), AHG -0.6% (to make equity investment in Deyihui), BA -0.5% (FAA's previously announced audit of 737 MAX production to include SPR fuselage according to Reuters), ARQT -0.5% (files $300 mln mixed shelf securities offering), OFG -0.1% (increases dividend; also approves new $50 mln stock repurchase authorization), SPR -0.1% (FAA's previously announced audit of 737 MAX production to include SPR fuselage according to Reuters)

>>> Boeing beats by $0.31, beats on revs, does not provide guidance; taking imme

Boeing beats by $0.31, beats on revs, does not provide guidance; taking immediate actions to strengthen quality on the 737 program (200.42)
  • Reports Q4 (Dec) core (non-GAAP) loss of $(0.47) per share, $0.31 better than the FactSet Consensus of ($0.78); revenues rose 10.2% year/year to $22.02 bln vs the $21.14 bln FactSet Consensus.
  • Note: Boeing typically provides full year operating cash flow and free cash flow guidance, but co did not provide guidance.
  • "While we report our financial results today, our full focus is on taking comprehensive actions to strengthen quality at Boeing, including listening to input from our 737 employees that do this work every day," said Dave Calhoun, Boeing president and chief executive officer. "As we move forward, we will support our customers, work transparently with our regulator and ensure we complete all actions to earn the confidence of our stakeholders."
  • Segment Performance:
    • Commercial Airplanes Q4 segment revenue increased 13% yr/yr to $10.48 bln, driven by higher deliveries and favorable mix.
      • Co continues to cooperate transparently with the FAA following the Alaska Airlines Flight 1282 accident involving a 737-9. Commercial Airplanes is taking immediate actions to strengthen quality on the 737 program, including requiring additional inspections within its factory and at key suppliers, supporting expanded oversight from airline customers and pausing 737 production for one day to refocus its employees on quality.
      • Co has also appointed an outside expert to lead an in-depth independent assessment of Commercial Airplanes' quality management system, with recommendations provided directly to Calhoun and the Aerospace Safety Committee of Boeing's Board of Directors.
        • The 737 program continues to deliver airplanes and its production rate is now at 38 per month.
        • The 787 program production rate is now at five per month.
        • Commercial Airplanes delivered 157 airplanes during the quarter and backlog included over 5,600 airplanes valued at $441 billion.
    • Defense, Space & Security Q4 revenue rose 9% yr/yr to $6.75 bln. Fourth quarter operating margin was (1.5)%, primarily driven by $139 million of losses on certain fixed-price development programs. Results were also impacted by unfavorable performance and mix on other programs.
    • Global Services Q4 revenue rose 6% yr/yr to $4.85 bln. During the quarter, Global Services opened its first parts distribution center in India and received a follow-on contract option to provide sustainment for the C-17 Globemaster III.

>>> US Gapping down

Gapping down
In reaction to earnings/guidance:
  • NYCB -17.1%, EXTR -16.5%, ROK -7.9%, RHI -7.3%, MOD -7.2%, TER -6.3%, GPI -5.9%, FCF -5.6%, GOOG -5.5%, GIB -5%, AMD -4.7%, MDLZ -4.6%, NVS -4.6%, LC -3.9%, ROP -3.7%, LFUS -3.6%, HA -2.2%, EA -2%, TMO -2%, TEVA -2%, CP -1.8%, HES -1.8%, EAT -1.2%, FBIN -1% (also increases share buyback auth by $650 mln), RKLB -1% (guidance), FTV -0.9%, AX -0.8%, MSFT -0.8% (also Robot startup Figure AI in funding talks to raise as much as $500 mln, led by MSFT and OpenAI, according to Bloomberg)
Other news:
  • AMSC -13.2% (stock offering; also files $250 mln mixed shelf securities offering)
  • ATKR -4.3% (initiates dividend)
  • VOD -3.8% (fails to accept iliad Group's revised proposal to merge Italian businesses)
  • TEVA -3% (announces its intention to divest its active-pharmaceutical ingredient business or "TAPI")
  • TSLA -2.6% (Delaware judge agreed to void CEO Elon Musk's $56 bln compensation package according to CNBC)
  • SLDB -2.2% (stock offering by selling shareholders)
  • BNTX -1.2% (BioNTech and Duality Biologics announces that the U.S. FDA granted Fast Track designation for BNT325/DB-1305)
  • DELL -1.1% (DELL terminates Commercial Framework Agreement with AVGO)
  • ICFI -1% (awarded a $33 mln digital modernization contract by Dept of HHS)
  • AVGO -0.9% (DELL terminates Commercial Framework Agreement with AVGO)
  • IMCR -0.8% (prices upsized offering of $350.0 mln of 2.50% convertible senior notes due 2030)
Analyst comments:
  • ERIC -3% (downgraded to Sell from Neutral at UBS)
  • SOFI -2.5% (downgraded to Underweight from Equal-Weight at Morgan Stanley)
  • TSVT -1% (downgraded to Market Perform from Outperform at TD Cowen)
  • FBIN -1% (downgraded to Market Perform from Outperform at BMO Capital Markets)
  • VZ -0.8% (downgraded to Equal Weight from Overweight at Barclays)

>>> US Gapping up

Gapping up
In reaction to earnings/guidance:
  • POWL +17.6% (also increases dividend), MANH +9.9%, ASH +6.5%, SYK +6.5%, EQR +4.5% (also buyback authorization replenished), NMR +4.4%, SBUX +3.7%, GSK +3%, BSX +3%, RNR +2.8%, COR +2.8%, SWKS +2.7%, SLGN +2%, NAVI +1.9%, PSX +1.9%, APAM +1.8%, SAN +1.8%, CB +1.7%, LII +1.6%, SLB +1.1% (guidance), ADP +1.1%
Other news:
  • CRBP +12.7% (announces proposed public offering)
  • ALLO +3.6% (entered into an Amended and Restated Collaboration and License Agreement with Notch Therapeutics)
  • ORIC +2.3% (Viking Global discloses 5.9% stake)
  • NAVI +1.9% (to outsource student loan servicing other actions)
  • REVG +1.1% (expects to incur pre-tax charges of approximately $23 million to $29 million)
  • WMT +1% (3-for-1 stock split)
Analyst comments:
  • CORZ +2.9% (upgraded to Buy from Neutral at Compass Point)

>>> US Research Calls

Research Calls
  • Upgrades:
    • Check Point Software (CHKP) upgraded to Outperform from Mkt Perform at William Blair
    • Commvault Systems (CVLT) upgraded to Overweight from Sector Weight at KeyBanc Capital Markets; tgt $109
    • Core Scientific (CORZ) upgraded to Buy from Neutral at Compass Point; tgt raised to $8.50
    • SM Energy (SM) upgraded to Buy from Neutral at Seaport Research Partners; tgt $50
  • Downgrades:
    • 2seventy bio (TSVT) downgraded to Market Perform from Outperform at TD Cowen
    • Crexendo (CXDO) downgraded to Neutral from Buy at B. Riley Securities; tgt raised to $6.75
    • Deutsche Bank (DB) downgraded to Neutral from Buy at Citigroup
    • Eagle Bulk Shipping (EGLE) downgraded to Hold from Buy at Jefferies; tgt $55
    • Ericsson (ERIC) downgraded to Sell from Neutral at UBS
    • Euronav (EURN) downgraded to Hold from Buy at Jefferies; tgt lowered to $18
    • Fortune Brands Innovations (FBIN) downgraded to Market Perform from Outperform at BMO Capital Markets; tgt raised to $82
    • Johnson Controls (JCI) downgraded to Hold from Buy at Deutsche Bank; tgt lowered to $60
    • SoFi Technologies (SOFI) downgraded to Underweight from Equal-Weight at Morgan Stanley; tgt lowered to $6.50
    • Southwestern Energy (SWN) downgraded to Neutral from Buy at Seaport Research Partners
    • Verizon (VZ) downgraded to Equal Weight from Overweight at Barclays; tgt $44
    • Vertex Pharma (VRTX) downgraded to Underperform from Neutral at Robert W. Baird; tgt $325
  • Others:
    • BridgeBio Pharma (BBIO) initiated with a Market Perform at BMO Capital Markets; tgt $37
    • ESSA Pharma (EPIX) initiated with a Buy at Jones Trading
    • Northwest Natural (NWN) initiated with a Neutral at Janney; tgt $39
    • Sarepta Therapeutics (SRPT) initiated with an Outperform at BMO Capital Markets; tgt $170
    • Silence Therapeutics (SLN) initiated with an Outperform at BMO Capital Markets; tgt $67
    • Toast (TOST) initiated with a Sector Perform at RBC Capital Mkts; tgt $19

FT : Paris SUV vote sets up Europe’s battle over large cars

Paris SUV vote sets up Europe’s battle over large cars
Sunday’s referendum will decide whether to raise parking fees for vehicles that are getting bigger and more popular

When Parisians vote next Sunday on whether to punish SUV owners with higher parking fees, the French capital’s leaders hope the outcome will not only inspire cities across Europe to follow suit if the referendum goes their way; they want to send a signal to the companies that make them too. 

“Our aim is to send a very strong message to carmakers — they shouldn’t be making these types of cars, they should be completely banned,” said David Belliard, one of the deputy mayors of Paris who is in charge of transport.

A green party politician in Socialist mayor Anne Hidalgo’s governing coalition, Belliard instigated just such a ban last year of e-scooter operators on the city’s streets with a similar referendum.

While Paris has brought in some of the toughest car restrictions in Europe over recent years, this time it did not have the legal means to ban the supersized vehicles from the roads. 

Instead, Parisians are voting on raising parking costs, which could result in rates tripling to as much as €18 an hour in parts of the city centre. The vote comes amid a growing debate about the role of cars in cities that risks becoming a problem for manufacturers.


That tension has focused on the 4x4s or sports utility vehicles imagined for rough terrain and once confined to farmers and park rangers, which are now taking over European roads.

Sales in 28 European countries, including the UK, rose from one in five cars in 2014 to more than half last year, according to figures from Jato Dynamics, a data group. In some countries, the takeover has been striking: in Croatia, sales rose from 12 per cent of the total to almost 60 per cent in a decade.

Environmental groups as well as politicians such as Belliard argue that SUVs combine several problems in cities. 

The fuel-hungry cars emit more air pollution and carbon emissions than regular vehicles, take up more road space and pose a higher risk to pedestrians and cyclists in crashes. Even the electric models that are succeeding today’s combustion engine versions are decried as unnecessarily big and more polluting due to their larger batteries.

Carmakers, for whom SUVs are increasing profit pools commanding bigger margins than smaller cars, say this is what consumers want.

“I have a deep respect for the lifestyle of my customers,” said Carlos Tavares, chief executive of Stellantis, the manufacturer of France’s Peugeot and Citroën as well as Jeep of the US, when asked about the Paris push.

Modern SUVs, which are better engineered than older models, have now largely pushed the minivans some families used to buy out of the market.

“Customers like SUVs, because of the higher driving positions, and they like the versatility that it offers,” said Mike Hawes, head of the Society of Motor Manufacturers and Traders, which represents the UK car industry.

Paris would not be the first city to bring in harsher SUV fees. France’s third-biggest city Lyon has already introduced higher charges.

Several London boroughs, including Greenwich, Lambeth and the City of London, have parking based on the vehicles’ tax band that ensures higher charges for larger or more emitting models, and Tübingen in Germany and parts of Montreal in Canada all have weight-based parking charges.

But the French capital is seen as something of a trendsetter on mobility. It has rapidly deployed cycle highways since the pandemic, introduced low emission zones, pedestrianised big traffic arteries and plans to ban cars that use diesel from 2025.

“What happens in Paris won’t stay in Paris,” warned Jens Müller, deputy director of the Clean Cities Campaign at Transport & Environment, an environmental lobby group. He added it would set a “strong signal for others to follow.”


The higher fees would vary by arrondissement and not apply to Parisians who have parking permits in their immediate vicinity. But owners of cars weighing over 1.6 tonnes would be hit by varying degrees if they leave their neighbourhoods.

Voter turnout might end up being small. But polling so far has shown roughly 60 per cent of Parisians are in favour of the higher fees.

Part of what has incensed anti-SUV campaigners is the promotion around the vehicles. 

“They’re presented to us in ads in the cinema, in magazines, with this idea of a promise of freedom,” said Belliard. However, consumers are becoming more aware of the gap between image and reality, and “their image is worsening,” he added. “I hope that will be reflected at the ballot box.”

Late last year, the UK advertising regulator ruled that a Toyota advert that showed Hilux pick-up trucks swarming across a riverbed could be banned, saying it showed “no regard for the environmental impact of such driving”.

Campaigners argue that consumers have been swindled into thinking they need a two-tonne machine to go shopping or do the school drop-off.

There is also a size issue, with SUVs getting bigger by an average of 1cm every two years, according to Transport & Environment. EU rules currently permit SUVs and other cars to be as wide as a bus. 


If anything, however, carmakers are doubling down. In the US, Chrysler was the first company to phase out traditional cars from its brands, making only SUVs, “crossovers” and pick-up trucks. Ford and General Motors have since both followed suit. 

In Europe, carmakers are making even non-SUV cars that emulate their high-riding cousins: VW raised the driving height of the latest Golf car, while Ford phased out the small Fiesta but kept selling the Puma, a similar version that is more elevated. 

Defenders of the cars say SUVs are one of the biggest segments for electric innovation. 

The top-selling car in the world last year was the electric Tesla Model Y smaller SUV, which overtook Toyota’s RAV4, another compact SUV.

“In my opinion this upcoming penalisation is more political than factual,” says Felipe Munoz, an analyst at data group Jato Dynamics. “When we talk about emissions, the biggest progress in terms of reduction has come from the SUV segment, as it is the one that has received more electric models over the last years.”

For car executives, the outcome of the Paris vote may not be an immediate concern in terms of losing sales momentum, although it is another signal that political attitudes are moving fast on cars, heaping uncertainty on their longer-term plans.

Tavares at Stellantis struck a defiant tone, showing that SUVs were not about to disappear.

“If France does not want SUVs, fine,” Tavares said, adding there were other spacious but smaller car models that consumers could opt for too. “I will sell sedans and hatchbacks to them, and SUVs to other markets.”

>>> US Early premarket gappers

Early premarket gappers
  • Gapping up:
    • POWL +16.3%, MANH +11.2%, ASH +6.5%, SYK +4.6%, EQR +4.5%, ALLO +4.2%, NMR +4.2%, SWKS +3.5%, CRBP +3.3%, SBUX +3.2%, APAM +3%, RNR +2.8%, TEVA +2.7%, ORIC +2.3%, CB +2%, NAVI +1.9%, SAN +1.8%, ATGE +1.7%, ERJ +1.6%, SLB +1.6%, WMT +1.2%, ALSN +0.8%
  • Gapping down:
    • AMSC -15.1%, RHI -8.9%, MOD -8.7%, TER -7.3%, AMD -6.6%, GOOG -5.7%, FCF -5.6%, MDLZ -4.5%, ATKR -4.3%, LC -3.7%, LFUS -3.5%, NVS -3.2%, TSLA -2.9%, PCVX -2.7%, SLDB -2.2%, HA -2.2%, TMO -2.1%, EA -2%, CP -1.8%, AVGO -1.7%, DELL -1.6%, BXP -1.4%, MSFT -1.2%, GSK -1.1%, ICFI -1%, FBIN -1%, UNM -0.9%, IMCR -0.8%, AX -0.8%, JNPR -0.8%