Disney (DIS) will report its first quarter financial results after the closing bell, with investors eager to learn more about its ESPN unit's plans to team up with Fox (FOXA) and Warner Bros. Discovery (WBD) on a streaming sports app. Others expected to report after the bell include Arm Holdings (ARM) and PayPal (PYPL). Meanwhile, shares of New York Community Bancorp Inc. (NYCB) fell again, this time on a junk note, while Snapchat owner Snap (SNAP) fell on weak earnings and outlook disappointing. Here's what investors need to know today.
1. Disney to report results under new ESPN streaming partnership
Shares of Walt Disney Co. (DIS) were down slightly in premarket trading as investors digested the news that its majority-controlled ESPN unit is joining forces with Fox (FOXA) and Warner Bros. Discovery (WBD) to create a joint sports streaming service. Investors will be watching for pricing details when Disney announces that analysts expect tepid growth in its first-quarter fiscal 2024 results after the closing bell. Analysts predict Disney will report revenue of $23.72 billion, up just under 1% year-over-year, weighed down by last year's lackluster box office and continued shutdown cables which harm its historical activities.
2. NYCB collapses as Moody's downgrades its lender to junk
Shares of New York Community Bancorp Inc. (NYCB), already struggling after the regional lender announced a surprise net loss last week, were lower again in pre-market trading, having lost nearly a quarter of their value on Tuesday, according to Moody's. The Investor Service downgraded the bank's rating to junk status. The rating agency cited “financial, risk management and governance challenges” to explain the downgrade. The turmoil hitting NYCB raises concerns about the broader challenges facing regional banks.
3. Ford shares gain following strong fourth quarter and outlook
Shares of Ford (F) rose more than 6% after the company reported better-than-expected fourth-quarter earnings, a strong earnings outlook and announced plans to return more cash to shareholders. The company said cost cuts and a strong truck business would help it report between $10 billion and $12 billion in adjusted pretax profit this year, which is at the high end of its own forecast when it was hampered by a six-week union strike. United Auto Workers Union. It forecast up to $9 billion in profits for its Ford Blue unit, made up of both gasoline and hybrid vehicles, but continued heavy losses in its electric vehicle business.
4. Instant dives after missed results, weak prospects
Snap Inc. (SNAP) shares fell 30% in premarket trading after the Snapchat owner missed analysts' expectations for quarterly sales and issued a weaker-than-expected outlook for the quarter ongoing amid a slowdown in digital advertising revenue caused by the conflict in the Middle East. The company's fourth-quarter revenue of $1.36 billion increased 5% from a year earlier but fell short of Wall Street's expectations. Snap's weaker-than-expected earnings report comes a day after the company joined a legion of other tech giants in announcing plans to cut its global workforce by 10%, or about 500 people.
5. CVS beats earnings expectations and cuts forecasts
Shares of CVS Health (CVS) rose nearly 2 as the drugstore chain and healthcare company reported better-than-expected results. Fourth-quarter profit on an adjusted basis came in at $2.12 per share, above analysts' estimates of $1.98. CVS, however, said it was reducing its 2024 profit forecast after reviewing its fourth-quarter expenses and assessing the “potential implications of an elevated medical cost trend.” The company cut its adjusted earnings forecast to $8.30 per share, from at least $8.50 per share.