2024-02-15 04:58:00
Current reporting from Wall Street and the world’s leading markets: the important updates, the prominent stocks, the bonds and the analysts’ updates
7:00 – Mixed trend and partial trading in Asia today as well, after the positive evening on Wall Street (Nasdaq climbed 1.4%, S&P 500 added 1% to its value, and Dow Jones strengthened by 0.4%).
The Nikkei index rises by 1% despite disappointing GDP data in Japan, the Hang Seng rises by 0.4%, the Kospi weakens by 0.1%. The stock exchange in Shanghai is closed for the Chinese New Year celebrations.
Japan entered a technical recession in the closing quarter of 2023, after surprisingly negative domestic product data for the period. Japan’s economy shrank by 0.4% in the fourth quarter year-on-year, after a 3.3% contraction in the previous quarter. Analysts’ forecasts were for growth of 1.4%.
In relation to the previous quarter, the Japanese GDP recorded a retreat of 0.1%, following the contraction of 0.8% in the third quarter. Here, too, there was disappointment in relation to the forecasts, which were for a quarterly growth of 0.2%.
Rakuten jumps 15% in Tokyo after the reports. The Japanese internet and telecom giant reported a 7.8% growth in revenue to a record 2.1 trillion yen, and a sharp reduction in the operating loss of the cellular division.
The number of mobile subscribers jumped 30% in the last quarter of 2023 to 6.5 million, and the operating loss fell to 68 billion yen ($433 million), compared to a loss of 106.4 trillion yen in the corresponding quarter.
Rakuten also announced that it will not distribute a dividend on the results of 2023 in favor of strengthening its capital, in a way that will allow it to expand without taking on debt.
Also in Tokyo: Softbank climbs by 4%, while Sony falls by 5.7% after the reports. In Hong Kong: the fashion and sports goods company Li Ning strengthens by 4.2% at the top of the index, the real estate company China Resources decreases by 2.5% at the bottom.
Cisco lost 5.3% in late trading after a disappointing forecast, and an announcement of an efficiency plan that includes laying off 4,200 employees, 5% of its workforce. The move will entail a one-time expenditure of 800 million dollars.
Cisco expects to register in the current quarter (fiscal third) an adjusted profit of 86-84 cents per share, and revenues of 12.3-12.1 billion dollars. The average of analysts’ expectations is an adjusted profit of 92 cents per share and revenues of 13.1 billion dollars.
The company ended the second fiscal quarter with a net profit of 2.6 billion dollars or 65 cents per share, the adjusted profit was 87 cents per share, the market expected 44 cents per share.
Revenues fell to $12.8 billion, compared to $13.6 billion in the corresponding quarter. Market expectations were $12.71 billion. Revenues from products totaled $9.2 billion, analysts were expecting $9.3 billion.
J Frog jumped 20.3% in late trading after surprisingly favorable reports, including the reduction of the quarterly loss, alongside an encouraging forecast for the rest of the way. This is the fourth consecutive quarter in which the company delivers better results than market expectations.
The Israeli software company ended the fourth quarter with a 27% growth in revenue to $97.3 million, analysts’ expectations were $93.1 million.
The loss was reduced to $11.2 million or 11 cents per share, compared to a loss of $23.2 million or 23 cents per share in the corresponding quarter. The market expected a deeper loss of 13 cents per share.
J. Frog issued a revenue forecast of between $424 million and $428 million in 2024, along with adjusted earnings of 60.58 cents per share. Analysts’ expectations are for revenues of $421 million and a profit of only 52 cents per share.
TripAdvisor jumped 7% in late trading after the reports. In the fourth quarter, the company recorded a 10% growth in revenue to $390 million, analysts were expecting $373 million.
The company moved to a profit of 32 million dollars or 22 cents per share, compared to a loss of 3 million dollars or 2 cents per share in the corresponding quarter of the previous year. Market expectations were for a profit of only 7 cents.
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