All articles tagged with #2024 outlook
Walgreens Boots Alliance reported second quarter revenue of $37.05 billion, beating expectations, but also a net loss of $6 billion due to the decline in the value of its investment in VillageMD. The company cited a challenging retail environment and narrowed its 2024 earnings outlook. The new leadership is focusing on scaling back and rightsizing the company, with a shift towards a back-to-basics focus on pharmacy.
The Coca-Cola Company reported a 7% growth in net revenues for the fourth quarter of 2023, with a 2% increase in global unit case volume. Full-year results showed a 6% growth in net revenues and a 2% increase in unit case volume. The company's operating income grew 10% for the quarter and 4% for the full year, while comparable currency neutral operating income (non-GAAP) grew 20% for the quarter and 16% for the full year. Coca-Cola also provided its 2024 financial outlook, expecting organic revenue growth of 6-7% and projecting an 8-10% growth in comparable currency neutral EPS (non-GAAP) for the year.
Despite underwhelming 2024 outlook, enterprise software company monday.com exceeded 2023 forecasts with $729.7 million in revenue and 41% growth. The company reported a better-than-expected fourth-quarter revenue of $202.6 million and improved profit margins, but its 2024 outlook disappointed investors with a projected slowdown in growth. Monday.com plans to recruit 600 new employees and pursue acquisitions to bolster its revenue line, aiming to reach close to a billion dollars in revenue for 2024.
British American Tobacco stock surged 7.4% after delivering solid end-of-year results, including a 3.1% organic revenue increase and a 9.9% revenue growth in its non-combustibles segment. The company's focus on growth categories and a 6.1% increase in revenue from price increases and sales mix contributed to its profitable year. Management expects low-single-digit organic revenue growth and progress towards reaching 5 billion pounds in new category revenue by 2025, along with a pledge to grow its dividend, which currently yields 9.2%.
Abbott reported its fourth-quarter and full-year 2023 financial results, with a 1.5% increase in fourth-quarter sales and an 8.1% decrease in full-year sales due to a decline in COVID-19 testing-related sales. The company issued its 2024 financial outlook, projecting full-year organic sales growth of 8.0% to 10.0%. Abbott's R&D pipeline continues to deliver new products, and the company anticipates growth in 2024 and beyond. The company's diverse portfolio, including infant formula, laboratory automation systems, and diabetes care products, contributed to its success in 2023.
United Airlines forecasts a wider-than-expected loss in the first quarter due to the grounding of Boeing 737 MAX 9 planes, but shares rise on a positive 2024 profit outlook. The company expects an adjusted loss of 35 to 85 cents per share for the quarter, with the grounding impacting non-fuel operating costs. The U.S. aviation regulator grounded MAX 9 jets indefinitely after a safety incident, affecting United and Alaska Airlines. United reported a better-than-expected adjusted profit in the fourth quarter and will provide updates on the safety inspections of the grounded planes in an upcoming call with analysts and investors.
American Honda provided an outlook on its 2024 U.S. automobile business, projecting increased annual sales for both Honda and Acura, with a focus on hybrid models, light trucks, and the introduction of high volume electric vehicles. The company plans to initiate sales of three zero emissions vehicles in 2024 and aims to achieve 100% zero emissions vehicle sales by 2040. Acura will introduce the all-electric ZDX SUV and enhance the MDX and RDX models, while Honda will launch the all-new electric Prologue SUV and the CR-V Fuel Cell Vehicle. Additionally, Honda debuted its new global EV series and concept models at CES 2024, signaling a strong commitment to electrification and sustainability.
Prologis, a global leader in logistics real estate, reported its fourth quarter and full year 2023 results, with net earnings per diluted share at $0.68 for the fourth quarter and $3.29 for the full year. The company expects a strong 2024 and projects over 9.0% Core FFO growth, excluding promotes, and 8.5% Cash Same Store NOI growth. Prologis also highlighted its balance sheet strength and liquidity, with debt as a percentage of total market capitalization at 20.5% and a weighted average interest rate on its share of total debt at 3.0%. The company's 2024 guidance includes potential gains recognized from real estate transactions and outlines its strategic capital, G&A, and capital deployment plans.
Despite a lack of enthusiasm from investors, gold reached a record high earlier this week and is anticipated to experience further gains in 2024. This suggests that investors might want to consider not overlooking gold in their investment strategies for the upcoming year.
Wall Street forecasters who predicted a rebound in the stock market for 2023 are now looking ahead to 2024 with optimism. Tom Lee of Fundstrat, Brian Belski of BMO Capital Markets, John Stoltzfus of Oppenheimer, Savita Subramanian of Bank of America, and Ryan Detrick of Carson Group all projected a recovery in 2023, citing factors such as excessive pessimism, a resilient labor market, easing consumer-price pressures, and rate cuts. They now expect further strength in 2024, with targets ranging from 5,000 to 5,200 for the S&P 500.
Despite concerns about an overbought S&P 500, historical trends suggest that overbought conditions don't always lead to immediate declines. As 2023 concludes with double-digit gains in global markets, the outlook for 2024 appears promising, with inflation moderating and efforts to avoid recession in an election year. Insiders rushing to buy stocks and the potential for additional rallies following substantial surges indicate positive market sentiment. However, prioritizing risk control remains crucial, especially for those who have secured gains, as optimism makes a comeback.
Wall Street analysts are offering a wide range of views on the stock market's outlook for 2024, with targets ranging from 4,200 to 5,500 for the S&P 500. While some analysts see weakness ahead, others expect strength. Factors influencing these views include expectations for economic growth, earnings growth, profit margins, interest rates, inflation, and valuations. It's important to note that short-term market predictions are notoriously difficult, and investors should consider the broader research and analysis behind these forecasts rather than relying solely on one-year targets.
Wall Street analysts have provided their predictions for the stock market in 2024. BCA Research expects a recession and a potential stock market crash, with a bearish S&P 500 price target of 3,300. JPMorgan is also bearish, citing high equity valuations, rising geopolitical risks, and a potential recession, with a price target of 4,200. Morgan Stanley takes a neutral stance, expecting a flat stock market but with some sectors outperforming others. They recommend focusing on defensive growth stocks and late-cycle cyclical stocks.
U.S. stocks have been performing exceptionally well this year, but experts predict that the gains may not be as significant in 2024. While history suggests that equities tend to outperform, it is unlikely that they will see the same level of success as this year.
Goldman Sachs predicts limited upside for stocks in 2024, with the S&P 500 projected to close the year at 4,700, representing a 5% increase from current levels. The firm believes that the current market rally will weigh on future gains, and while it expects a benign outcome for equities, the starting point will limit potential appreciation. Goldman sees the majority of the market's gains concentrated in the second half of the year, with the resolution of election uncertainty and the first Fed rate cut expected to lift US equity prices. The firm also highlights the outperformance of the "Magnificent Seven" tech stocks but cautions that the risk/reward profile may not be attractive given elevated expectations. Overall, Goldman Sachs advises investors to stay invested through 2024, as high-quality stocks and beaten-down cycle plays are expected to perform well.