Positive Q2 Results Boosted Stock
The company’s stock jumped 15% after the bell due to better-than-expected Q2 results.
Adjusted earnings were reported at 88 cents per share, surpassing the estimated 54 cents.
Revenue reached $4.28 billion, exceeding the expected $4.19 billion.
Agreement on All-Cash Takeover Lifts Shares
The stock surged over 12% after the company agreed to a $16.5 billion all-cash takeover by Novo Holdings, at $63.50 per share.
The deal is set to close in late 2024.
Q4 Performance and Future Outlook
Shares rose more than 4% after reporting Q4 adjusted earnings per share of $5.23.
Although revenue slightly fell below estimates at $17.07 billion, strong sales in North America were noted.
However, shares dropped 9% post-earnings miss in Q1.
Downward Trend in Q1 Results and Downgrade Impact
Q1 results were disappointing, with adjusted earnings of $2.82 per share, below the expected $3.00 per share.
Revenue was $3.00 billion, missing the consensus of $3.20 billion.
The stock slid 2% after JPMorgan downgraded it to neutral from overweight.
Market Reaction to Manufacturing Activity and Analyst Action
The company reported a “deeper cycle bottom” as manufacturing activity weakened.
Stock gained 3% before the opening bell after Goldman Sachs raised the price target to $800.
Mixed Sentiments Ahead of Quarterly Results
Optimism prevailed ahead of quarterly results on Feb. 21, citing sustained demand for accelerated computing.
However, shares were down 1.7% amid reports of the French government reviewing a merger with Renault to compete with German and Chinese automakers.
The French government holds stakes in both companies.
Mixed Quarterly Results and Acquisition Plans
The stock was slightly lower after reporting mixed quarterly results, with earnings of $2.95 per share on $6.41 billion revenue.
The miss was attributed to the impact of the Middle East conflict.
Shares were up 7% as Merck Animal Health plans a $1.3 billion cash acquisition of Elanco’s aqua business.
Concerns and Downgrade Impact
The stock declined 2.9% after JPMorgan downgraded it to neutral from overweight.
Expected tailwinds from the “Barbie” movie were deemed overblown, with weak 2023 holiday sales and rising freight costs cited as concerns.