Pfizer exceeded earnings estimates and raised its full-year profit guidance despite a decline in sales, driven by cost-cutting measures and a one-time charge related to a Chinese biotech licensing deal. The company also announced a significant investment in U.S. manufacturing and is involved in a bidding war for the biotech Metsera, amidst ongoing negotiations with the Trump administration over drug pricing and tariffs.
General Motors laid off over 200 salaried employees, mainly at its Warren, Michigan Tech Center, as part of a restructuring to improve profitability amid changing policies and tariffs. Despite recent strong earnings and an increased profit forecast, the company is streamlining operations, including eliminating duplicate roles in design engineering, to adapt to economic and policy shifts. The move coincides with a boost in GM's stock and positive comments from President Trump about the company's performance.
Novo Nordisk's stock increased despite announcing a plan to cut 9,000 jobs and lowering its profit guidance, as the company aims to reduce costs and address competitive pressures, with investors seemingly optimistic about the company's strategic moves and future prospects.
Lululemon's stock dropped 22% after hours despite beating earnings and revenue expectations, due to lowered profit guidance caused by higher tariff costs and weaker sales growth, especially in the U.S., with concerns about increased competition and cautious consumer spending impacting future prospects.
Genuine Parts stock surged 12% after the company reported Q1 financial results and raised its full-year profit guidance, despite a modest increase in sales and a decline in earnings per share. The boost in profit guidance instilled confidence in investors, leading to the stock's rise. Additionally, Genuine Parts' long-standing track record of paying and increasing dividends for 67 consecutive years, along with its safe dividend payout ratio, further solidified its appeal as a top dividend stock.
Shipping giant Maersk has announced plans to cut over 10,000 jobs and expects its profit to be at the lower end of prior guidance, causing its Denmark-listed shares to plunge 18%. The company cited subdued demand, overcapacity, and inflationary pressure on its cost base as reasons for the job cuts and profit outlook. Maersk maintained its full-year EBITDA guidance but anticipates it to come in at the lower end of the range. The company reported a drop in third-quarter revenue and is implementing cost and cash containment measures to address the challenging macroeconomic environment.
Ford stock is down over 7% as the automaker pulls its profit guidance and warns of challenges in the EV segment. The company reported mixed Q3 earnings, with revenue of $43.8 billion and adjusted earnings per share of $0.39. Ford cited the effects of the labor stoppage and customer reluctance to pay premiums for EVs as reasons for withdrawing its full-year guidance. The company also highlighted problems with its current-gen EVs and announced plans to delay $12 billion in EV investments. Despite this, Ford reported an increase in hybrid and EV sales for Q3.
Siemens Gamesa Renewable Energy has discovered that its wind turbine fleet has much bigger problems than it thought, which could take years to fix. The company's Spanish division found that its onshore wind turbines had worse-than-expected quality flaws, and it will have to fix flaws in rotor blades and bearings, ranging from component failures to small cracks. As a result, Siemens Gamesa has scrapped its annual profit guidance and warned that additional costs to rectify its problems could be more than $1.1 billion.
American Airlines has raised its profit guidance, providing investors with more reason to be optimistic about the summer travel season following a successful Memorial Day weekend with few disruptions.
American Airlines' stock fell as the company's updated profit outlook for Q1 fell short of analysts' expectations. The airline expects to post adjusted earnings per share of 1-5 cents, an improvement from its previous guidance of break-even, but below the expected 5 cents per share according to FactSet data.
