| | | A telecom giant is surging on a huge earnings jump, an HRMS firm is rewarding investors with its 50th straight dividend hike, and a tiny pharma stock is skyrocketing nearly 80% after a key clinical trial approval. Read on to find out more... | |
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| | | | | What to Watch | Earnings: | Microsoft [MSFT]: Aftermarket Meta Platforms [META]: Aftermarket Tesla [TSLA]: Aftermarket ServiceNow [NOW]: Aftermarket International Business Machines [IBM]: Aftermarket | Economic Reports: | Advanced U.S. trade balance in goods [Dec]: 8:30 a.m. Advanced retail & wholesale inventories [Dec]: 8:30 a.m. |
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| | Telecommunications | T-Mobile Shares Jump on Earnings Surge, Improved Customer Growth Outlook | | T-Mobile’s [NASDAQ: TMUS] fourth-quarter earnings are above market expectations, with strong subscriber growth and a significant jump in profitability. The telecom company added 903,000 postpaid phone customers in the final quarter of 2024, exceeding analyst projections of 858,500. | Earnings per share are up 54% year-over-year, touching $2.57 and beating estimates of $2.29. Revenue for the quarter is $21.87 billion, also ahead of expectations of $21.33 billion. | T-Mobile’s shares are up 8% in premarket trading. | CEO Mike Sievert called the performance a “monster” quarter and expressed optimism that 2025 will bring even greater momentum. | T-Mobile also issued its strongest-ever start-of-year guidance, forecasting between 5.5 million and 6 million postpaid customer additions in 2025. The midpoint of this range is well above the 5.4 million expected by analysts, signaling confidence in continued growth. | The company’s performance highlights its ability to expand its customer base despite increased competition in the telecom sector. With strong financial results and an aggressive outlook for 2025, T-Mobile remains well-positioned for further expansion in the wireless market. |
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| | Life Sciences & Diagnostics | Danaher’s Stock Falling On Mixed Q4 Results, Cautious 2025 Outlook | | Danaher Corporation’s [NYSE: DHR] fourth-quarter earnings are slightly below analyst expectations despite surpassing revenue forecasts. | The life sciences and diagnostics firm’s adjusted earnings per share of $2.14 are narrowly below the projected $2.15. However, revenue touched $6.54 billion, exceeding the expected $6.39 billion and reflecting a 2% year-over-year increase. Non-GAAP core revenue is up by 1% compared to the same period last year. | Shares of the firm are down 5.3% in premarket trading. | CEO Rainer M. Blair highlighted how strong execution across all segments contributed to better-than-anticipated core revenue, solid cash flow, and operating margin expansion. | For the full year 2024, Danaher reported a revenue of $23.9 billion, remaining flat from 2023, while non-GAAP core revenue is down by 1.5%. Operating cash flow is $6.7 billion, with non-GAAP free cash flow at $5.3 billion. | Looking ahead, Danaher expects first-quarter 2025 non-GAAP core revenue to decline in the low-single digits year-over-year but anticipates full-year core revenue growth of approximately 3%. | While the company is optimistic about its long-term trajectory, investors appear focused on near-term challenges, contributing to the decline in stock price. |
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| | | | Human Resource Management Software | ADP Delivers Solid Q2 Results, Raises Dividend for 50th Consecutive Year | | Automatic Data Processing Inc. [NASDAQ: ADP] reported better-than-expected second-quarter results today, with strong revenue and profitability growth. | The company’s revenue of $5.0 billion is up 8% year-over-year and higher than analyst forecasts of $4.97 billion. Net earnings are up 10%, reaching $963 million, while diluted earnings per share (EPS) are at $2.35, surpassing estimates of $2.31. | Adjusted earnings before interest and taxes (EBIT) increased by 11% to $1.3 billion, with margins expanding by 60 basis points to 25.2%. The Employer Services segment saw an 8% revenue increase, supported by a 90 basis point rise in segment margins. | Meanwhile, interest on funds held for clients jumped 21% to $273 million, driven by an 8% increase in average client funds balances. | ADP’s stock is up 1% in premarket trade. | CEO Maria Black highlighted ADP’s continued momentum, noting that the company’s board approved its 50th consecutive annual dividend increase in November. CFO Don McGuire attributed the strong performance to higher client funds interest revenue and solid new business bookings. | Despite the overall positive results, the company’s Professional Employer Organization (PEO) segment saw a 140 basis point margin decline, signaling potential challenges in maintaining profitability in that division. | With a strong cash flow position and strategic financial planning, ADP remains well-positioned for future growth in the human capital management sector. Investors have taken note of the company’s steady expansion and solid financial performance. |
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| | Movers and Shakers | | 60 Degrees Pharmaceuticals [SXTP] - Last Close: $0.77 | 60 Degrees Pharmaceuticals is a specialty pharmaceutical company focusing on developing and marketing new medicines for the treatment and prevention of infectious diseases. | The company’s stock is up nearly 80% after announcing that it has received Investigational Review Board (IRB) approval for a Phase II clinical study of Arakoda (tafenoquine) to treat patients with a presumptive diagnosis of chronic babesiosis. | My Take: While the IRB approval marks progress, the company's stock is down 87% in the last year, and it has been struggling with profitability. It might be best to keep this one on your wait and watch list for now. |
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| Nextracker Inc. [NXT] - Last Close: $39.62 | Nextracker Inc. specializes in solar tracking equipment, a critical component for optimizing solar energy production. | The company’s shares are surging 22% due to its strong Q3 results, where revenue has reached $679 million, surpassing analyst expectations of $650.7 million, and adjusted EPS has gone up to $1.03, far exceeding the estimated $0.59. | Nextracker also raised its FY25 adjusted EPS forecast to $3.75–$3.95 from $3.10–$3.30, reaffirming its revenue outlook of $2.8 billion to $2.9 billion. | My Take: NXT has made a strong comeback in the last two years, after two lackluster years. This year its quarterly results have been on fire. Keep this stock on your radar for sure. |
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| Brinker International [EAT] - Last Close: $154.61 | Brinker International operates popular restaurant chains, including Chili's Grill & Bar and Maggiano's Little Italy. | In its second-quarter results, Brinker’s adjusted earnings per share of $2.80 are higher than analyst expectations of $1.80, and revenue has reached $1.36 billion, exceeding forecasts of $1.24 billion. | This is causing the share to surge 13% in premarket trade. | The company also raised its full-year guidance, now anticipating earnings between $7.50 and $8.00 per share and revenue between $5.15 billion and $5.25 billion. | My Take: EAT has grown 270% in the last year and has strong financials, which make it an excellent stock to keep your eye on. |
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| | | | | | That’s all for today. Thank you for reading. If you have any feedback, please reply to this email. | Best Regards, | — Adam Garcia Elite Trade Club |
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