Humana, Discover, Spirit Airlines, Taiwan Semi, Apple, MDC Holdings, and more carriers

Humana, Discover, Spirit Airlines, Taiwan Semi, Apple, MDC Holdings, and more carriers

Humana stock fell 12% after the health insurer cut its adjusted earnings forecast for fiscal 2023 to about $26.09 per share due to higher medical costs. It expects GAAP earnings for this year of $20 per share. UnitedHealth fell 4% and CVS Health fell 4.1%.

Discover Financial Services fell 11% after reporting its discount rate — the percentage of outstanding debt that credit card issuers write off as a loss — rose to 4.11% in the fourth quarter, up from 2.13% a year earlier. Discover also said its provision for credit losses at the end of the quarter was $1.9 billion, up $1 billion from a year earlier, driven by an increase in net discounted charges and increased reserves. Discover’s fourth-quarter earnings also fell short of analysts’ estimates.

Spirit Airlines fell 32% to $4.15 after The Wall Street Journal reported that Spirit was planning to explore restructuring options with advisers following a blocked merger with JetBlue Airways as it faces near-term debt maturities. Citi analysts downgraded the stock to sell on Thursday after a federal judge blocked the budget carrier’s proposed merger with JetBlue.
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Standing with the Department of Justice on antitrust grounds. Spirit was down 47% on Tuesday and 22% on Wednesday.

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Shares of U.S.-listed Taiwan Semiconductor Manufacturing Co rose 7.4% after the company said it expects revenue this year to grow at least 20%, more than double the rate of the broader chip market. The company reported fourth-quarter earnings down 19% from a year earlier but still beat analysts’ expectations. Revenue in US dollars fell 1.5% in the quarter to $19.62 billion but rose 13.6% from the third quarter. Other chip stocks rose, with Nvidia rising 2.1% and Advanced Micro Devices rising 2.8%.

Apple has once again been barred from selling existing versions of the Apple Watch equipped with blood oxygen sensors in the US in connection with a patent infringement case brought against the tech giant by medical device manufacturer Masimo.
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The company said it would disable the oxygen feature in the blood, according to reports. Apple shares rose 2.8% to $187.82, after analysts at BofA Securities upgraded the stock to Buy from Neutral and raised their price target to $225 from $208.

Alcoa reported a smaller-than-expected adjusted loss in the fourth quarter and revenue fell 2.5% to $2.6 billion, which just beat estimates. The aluminum products maker said it expects production to decline in 2024. The stock fell 1%.

Power delivery

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It fell 15% to $2.33 after revealing in a filing that it would sell up to $1 billion worth of shares. The clean energy company said it has entered into a market issuance sales agreement with B. Riley Securities that will allow it to sell up to $1 billion in common stock.

Hertz stock rose 7.2% to $8.97 after analysts at Morgan Stanley upgraded the car rental company’s shares to overweight from equal weight. The price target was lowered to $15 from $16. The company said last week that it will sell about 20,000 electric cars in the United States

Fastenal shares rose 5.9% after the industrial and construction supplies distribution company’s fourth-quarter earnings exceeded analysts’ estimates.

Birkenstock shares fell 9.7% after the German sandal maker said it expects “modest headwinds” to fiscal 2024 margins in adjusted EBITDA, “due to planned increased costs and initial cost reductions.” Absorption” in Passwok, Germany, where a new production plant will be established.

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MDC Holdings rose 18% after the homebuilder said it sold itself to Japan’s Sekisui House for $4.9 billion in cash.

Boeing shares rose 3.2%. India’s newest airline, Acasa Air, has ordered 150 Boeing 737 MAX aircraft. ACASA will purchase 737-10 and 737-8-200 aircraft. The order does not include the 737 Max 9, which was grounded by the Federal Aviation Administration after an accident on an Alaska Airlines flight earlier this month.

Write to Joe Woelfel at joseph.woelfel@barrons.com

(tags for translation) Energy

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