2024-02-21 23:12

Feb 21 (Reuters) - Nvidia (NVDA.O) , opens new tab added over $129 billion in stock market value late on Wednesday after the chipmaker's hotly anticipated quarterly report beat estimates and sparked gains in other AI hardware stocks. Nvidia's stock jumped almost 8% after its quarterly outlook exceeded analysts' estimates, along with its January-quarter revenue and profits. Nvidia has been a top beneficiary of technology companies' race to build artificial intelligence into their products and services. This made the Santa Clara, California company's outlook a major test of whether Wall Street's AI-fueled rally is likely to continue or potentially reverse. Following Nvidia's report, server component supplier Super Micro Computer (SMCI.O) , opens new tab jumped almost 6%, while Nvidia rival Advanced Micro Devices (AMD.O) , opens new tab rose 3%. Broadcom (AVGO.O) , opens new tab and Marvell Technology (MRVL.O) , opens new tab, two more chipmakers benefiting from the surge in AI computing, rose over 2% each in extended trade. Arm Holding (O9Ty.F) , opens new tab, added nearly 6%, now up more than 160% from the $51 price set in its initial public offering in September. Nvidia forecast current-quarter revenue of $24.0 billion, plus or minus 2%. That was well above the $22.17 billion predicted by analysts, according to LSEG data. The company reported fourth-quarter revenue of $22.10 billion, beating estimates of $20.62 billion and adjusted EPS of $5.16 vs $4.64 expected by analysts. Net income surged 769% from a year ago to $12.285 billion. Worries that Nvidia's quarterly report might not meet Wall Street's high expectations in recent days knocked its stock down almost 9% from record highs. Its late-day surge to $724 on Wednesday still leaves its short of its $739 record high close on Feb. 14. Including Wednesday's after-hours gain, Nvidia's stock has climbed over 40% in 2024 after more than tripling last year. In recent sessions, Nvidia has jockeyed with Amazon.com (AMZN.O) , opens new tab and Alphabet (GOOGL.O) , opens new tab for a spot as Wall Street's third-most valuable company. Nvidia has also recently replaced Tesla (TSLA.O) , opens new tab as Wall Street's most traded stock by value. https://www.reuters.com/technology/nvidia-stock-surges-after-results-lifts-other-ai-shares-2024-02-21/

2024-02-21 23:12

Feb 21 (Reuters) - Canada's Suncor Energy (SU.TO) , opens new tab beat Wall Street estimates for fourth-quarter profit on Wednesday, as the oil and gas producer was helped by higher production. The company posted adjusted operating earnings of C$1.26 per share for the three months ended Dec. 31, compared with analysts' average estimate of C$1.05 per share, according to LSEG data. Suncor reported fourth-quarter total upstream production of 808,100 barrels of oil equivalent, compared with 763,100 barrels of oil equivalent in Q4 2022. "Upstream reliability across our operations was at or near record highs, achieving the second highest quarterly total production in the company's history and the highest quarterly Oil Sands production," said CEO Rich Kruger. The company had said in January its upstream production was 808,000 barrels per day (bpd) in the fourth quarter, driven by strong output at its Firebag and Fort Hills assets. Suncor also restarted production at the Terra Nova offshore vessel in November. Canadian oil sands production has been on the rise with companies raising output keeping in mind the Trans Mountain pipeline expansion, expected to start this year. https://www.reuters.com/business/energy/suncor-energy-beats-quarterly-profit-estimates-2024-02-21/

2024-02-21 23:11

Feb 21 (Reuters) - Electric vehicle startups Rivian (RIVN.O) , opens new tab and Lucid (LCID.O) , opens new tab forecast 2024 production well below analyst estimates on Wednesday as persistently high borrowing costs keep consumers from buying relatively pricier battery-powered cars. Amazon.com-backed (AMZN.O) , opens new tab Rivian also said it would cut its workforce by 10%. Shares in Rivian and Lucid plummeted 15% and 8% respectively after the announcements - the latest signs of a slowdown in EV demand flagged by automakers including Ford (F.N) , opens new tab, General Motors (GM.N) , opens new tab and market leader Tesla (TSLA.O) , opens new tab. The plateauing demand sparked a price war last year as companies drained margins to woo customers. Rivian, the maker of R1T pickup trucks and R1S SUVs, is planning a weeks-long production shut down this year to upgrade its production line to improve efficiency and cut costs. As a result, Rivian said it expects to produce 57,000 vehicles in 2024, well below estimates of 81,700 units, according to eight analysts polled by Visible Alpha. It produced 57,232 vehicles last year. "There is a host of macro level challenges," Rivian CEO RJ Scaringe told Reuters, adding that high interest rates and geopolitical risks were making consumers more conscious and price sensitive. After shying away from cutting the price of its vehicles last year, Rivian this month introduced lower-range options for its existing cars that are $3,100 cheaper. Still, Rivian said it expects deliveries in the current quarter to be 10-15% lower than the already weak fourth quarter and that its order book had reduced due to factors including cancellations. Rivian has been focusing on reducing its cash burn by re-negotiating supply contracts and building some components in house. Along with the cost benefits from the production line upgrade, the company said it expects margins to improve by the end of the year. "A lot is riding on" the company's smaller and cheaper R2 SUV that is set to be unveiled next month, Vitaly Golomb, a Rivian investor and an investment banker, told Reuters. Production is scheduled to start in 2026. Like Rivian, Lucid is planning to start producing a mid-size car late in 2026 to attract a broader customer base, after its Gravity SUV goes into production later this year. "With that we're going to target a $50,000 price point," Lucid CEO Peter Rawlinson said in an interview. "Right now, we're competing with Mercedes and Porsche. When that comes out, we're going after Tesla Model Y and Model 3," he said, adding that he expects Lucid's total addressable market to increase 20 times. Lucid, which has been slashing prices of its Air luxury electric sedans, also forecast production for 2024 that was much lower than Wall Street's expectations. It expects to make 9,000 units this year, up from 8,428 vehicles in 2023. Wall Street estimated 22,594 units, according to five analysts polled by Visible Alpha. https://www.reuters.com/business/autos-transportation/rivian-forecasts-annual-production-well-below-estimates-2024-02-21/

2024-02-21 22:55

TORONTO, Feb 21 (Reuters) - First Quantum Minerals (FM.TO) , opens new tab on Wednesday announced a series of capital restructuring measures that would strengthen its balance sheet and cut debt, a move that will help the Canadian miner deliver on its "operational objectives." The company has lost over half its market value after Panama's surprise order in November to shut the Cobre Panama copper mine, one of the world's largest and First Quantum's flagship mine that accounted for about 40% of its revenue. As part of the capital restructuring, First Quantum has extended its $2.2 billion corporate bank loan and extended its maturity to April 2027. It also announced a $1 billion common share offering to under writers led by RBC Capital Markets, BMO Capital Markets, and Goldman Sachs, and launched a private offering of senior notes worth $1.6 billion due in 2029. "Today's actions result in a capital structure that will enable us to deliver the S3 Expansion (mine in Zambia), which will return the company to a position of strong free cash flow generation," First Quantum CEO Tristan Pascall said in a statement. The company also said it is seeking $20 billion through international arbitration after Panama's top court ruled First Quantum's contract was unconstitutional following nationwide protests against its operation. "We have provided a minimum value sought in those proceedings of $20 billion, reflecting an estimated fair market value of initial investment," Pascall said on an earnings call, adding the company could potentially get much higher amount in damages and interest. However, Pascal said that arbitration is not the preferred outcome for the company. "We would really rather come to a resolution with the state of Panama that results in the best outcome for the people and for the company. First Quantum has filed arbitration as part of the free trade agreement between Canada and Panama. The company separately has also filed a case at the International Chamber of Commerce (ICC) arbitration process, under the termination clause in the ICC contract. For the quarter ending Dec.31, First Quantum reported a net loss of $1.45 billion. The stock closed at C$11.91 up by 2.5% at the Toronto Stock Exchange on Wednesday. https://www.reuters.com/markets/commodities/first-quantum-says-it-is-seeking-20-billion-over-panama-mine-closure-order-2024-02-21/

2024-02-21 22:22

Feb 21 (Reuters) - Dispensing equipment maker Nordson Corp (NDSN.O) , opens new tab on Wednesday forecast second-quarter profit below Wall Street estimates on slow recovery of electronics and semiconductor markets amid high borrowing costs. It now expects profit between $2.20 and $2.35 per share for the second quarter, while analysts were expecting $2.45 per share, according to LSEG data. Shares of the company were down 0.7% in aftermarket trading. Nordson also narrowed its forecast for full-year 2024 revenue growth to between 4% and 7%, down from its previous expectation of between 4% and 9%, compared to year ago. The company has been grappling with slowdown in sales at its Advanced Technology Solutions business that serves the semiconductor market, which has come under pressure due to a slowdown in chip orders. First-quarter sales at Advanced Technology Solutions decreased 18% from the year-ago quarter. The company reported first-quarter adjusted profit of $2.21 per share, beating expectations of $2.04 per share, as per LSEG data. The Westlake, Ohio-based manufacturer's quarterly revenue increased 4% to $633.2 million, beating estimates of $630.4 million. https://www.reuters.com/markets/us/nordson-forecasts-second-quarter-profit-below-estimates-weak-electronics-demand-2024-02-21/

2024-02-21 22:12

LONDON, Feb 21 (Reuters) - A cargo ship abandoned four days ago in the Gulf of Aden after it was hit by missiles fired by Yemen's Houthis is still floating despite taking in water, and could be towed to nearby Djibouti, industry sources said on Wednesday. Shipping risks have escalated due to repeated drone and missile strikes in the Red Sea and Bab al-Mandab Strait by the Iran-aligned Houthis since November. U.S. and British forces have responded with several strikes on Houthi facilities but have so far failed to halt the attacks. The crew of the Belize-flagged Rubymar abandoned the vessel after it was hit on Sunday and were rescued by another commercial ship. The vessel was taking in water and its operators were exploring options, the vessel's maritime security company LSS-SAPU told Reuters on Monday. The vessel's UK registered company and Lebanese based ship manager could not be located for further comment on Wednesday. A maritime advisory warned ships in the area to avoid the abandoned vessel. A U.S. defense official said on Tuesday that the vessel had not sunk. Two shipping and insurance sources said towing the vessel to Djibouti appeared to be the best course of action. "Djibouti is the only immediate option where some repairs or recovery would be feasible," one of the sources said. "It is too risky for a ship in that condition to be towed too far or in more open waters." The vessel last reported its position over two days ago, and was headed to the Bulgarian port of Varna, according to data from ship tracking and maritime analytics provider MarineTraffic. Insurance sources said they could not determine who had insured the vessel, which appeared not to be covered through the London marine insurance market. A Djibouti port spokesperson did not immediately respond to a request for comment. The Djibouti Ports & Free Zones Authority said on Feb. 19 in a statement on X that its Port Authority completed the safe repatriation of the Rubymar’s 24 crew members - 11 Syrians, six Egyptians, three Indian nationals, and four Filipinos – who were brought to the Djibouti area by the rescue vessel. "The vessel has on board 21,999 MT (metric tonnes) of fertilizer IMDG class 5.1, very dangerous," the Authority said, adding the ship’s AIS transponder was switched off and it did not know the coordinates of the vessel. The U.S. State Department on Wednesday condemned the Houthi vessel attacks, saying they are driving up prices and delaying deliveries of vital food and medicines in Sudan, Ethiopia and Yemen. Spillage of fertilizer and fuel from the Rubymar could exacerbate that harm by threatening Yemen's fishing industry, the agency said. Despite retaliatory Western attacks in Yemen, the Houthis have vowed to continue striking ships they say are linked to Israel, in solidarity with Palestinians until Israeli forces stop their war in the Gaza Strip. So far, no ships attacked have been sunk or any crew killed but there are growing safety fears. The UKMTO British navy agency said on Tuesday it had received reports of an explosion and a flash sighted in the southern Red Sea 40 nautical miles west of the Yemen's northern Hodeidah port, which is located in an area controlled by the Houthis. "Vessels and crew in the vicinity are reported safe," UKMTO said. "Vessels are advised to transit with caution." https://www.reuters.com/world/ship-abandoned-red-sea-faces-unknown-fate-sources-2024-02-21/