Nike exceeds forecasts despite declines + Fedex lowers business outlook + Micron Technology surprisingly optimistic about the third quarter + Xiaomi 2024 with record sales
Nike $NKE (+2,44%)exceeds forecasts despite declines
- The sporting goods giant Nike continues to struggle with declining sales even under a new boss.
- In the third quarter (to the end of February) of the 2024/25 financial year, revenue fell by nine percent year-on-year to 11.3 billion US dollars (10.4 billion euros).
- Nike thus slightly exceeded the expectations of analysts, who had expected an average of just over eleven billion dollars.
- On balance, the quarterly profit fell by 32 percent to 794 million dollars.
- However, Nike's earnings per share of 54 US cents clearly exceeded the analysts' forecast of 29 cents.
- In an initial reaction, the share price rose by more than three percent in US after-hours trading.
- One trigger for the decline in turnover was a slump in business in China.
- In October, former top manager Elliott Hill returned to Nike from retirement to take over the top job.
- Part of his predecessor John Donahoe's strategy was to focus more on direct sales.
- The downside, however, was that the shelf space given up by Nike in stores was filled by products from competitors.
- This made the rivals more visible to consumers.
Fedex $FDX (+1,9%)lowers business outlook
- Weak demand is making the US logistics group Fedex more cautious for the 2024/25 financial year, which runs until the end of May.
- According to a statement issued on Thursday evening, Group CEO Raj Subramaniam now expects stable to slightly declining sales, after previously assuming a roughly stable development.
- According to the manager, the revised outlook reflects the ongoing weakness and uncertainty in the US industry.
- Demand for shipping services among business customers is suffering as a result.
- Adjusted for special effects, earnings per share are expected to reach 18.00 to 18.60 US dollars instead of 19 to 20 dollars.
- The average analyst estimate is above the upper end of the new target - and the rival of DHL Group and UPS now intends to invest less money in the business than previously planned.
- In the third quarter of the past financial year, Fedex increased its turnover by a good two percent to 22.2 billion US dollars (20.4 billion euros).
- Adjusted earnings per share grew by 17 percent to 4.51 dollars.
- On average, analysts had expected slightly higher earnings per share.
Micron Technology $MU (+3,4%)is surprisingly optimistic about the third quarter
- The manufacturer of DRAM and NAND memory chips Micron Technology is more optimistic than expected about the current third financial quarter due to AI-driven demand from data center operators.
- The company is also confident about demand from consumer electronics manufacturers.
- Sales in the third financial quarter should therefore reach 8.80 billion US dollars plus/minus 200 million dollars, the company stated on Thursday evening after the US stock exchange closed.
- Adjusted for special effects, earnings per share are expected to reach 1.57 dollars - plus or minus 10 cents.
- The Micron share price rose by almost five percent in US after-hours trading.
- The outlook could signal an upturn in demand from smartphone and PC manufacturers, which has been rather sluggish across the industry for some time.
- During the coronavirus pandemic, these manufacturers had filled their warehouses as full as possible due to a shortage of parts, but were then left with excessively high inventories after the end of the pandemic, which first had to be reduced.
- This also affected manufacturers of semiconductor wafers such as the German Siltronic Group.
- The wafers are the starting product for computer chips.
- In the second quarter (ending February 27), Micron increased its turnover by 38 percent year-on-year to 8.05 billion dollars (7.4 billion euros).
- The bottom line profit doubled to just under 1.6 billion dollars.
Xiaomi $1810 (-1,63%)2024 with record turnover of RMB 365.9 billion
- Record year for Xiaomi
- Total sales in 2024 increased by 35 percent to RMB 365.9 billion
- Q4 over RMB 100 billion for the first time
- Adjusted net profit grows by 41.3 percent to RMB 27.2 billion.
- Strong growth in key areas: smartphone sales increase to RMB 191.8 billion (+21.8%)
- Electric vehicles and new initiatives generate RMB 32.8 billion in sales
- IoT and lifestyle products grow by 30% to RMB 104.1 billion
- Successful push into the ultra-premium segment: Xiaomi 15 Ultra and SU7 Ultra with strong sales figures, secured orders for SU7 Ultra exceed 10,000 units - annual target achieved ahead of schedule.
- Technological innovation and AI integration: R&D investments increase by 25.9% to RMB 24.1 billion, over 42,000 patents worldwide
- HyperOS 2 strengthens networking and AI applications in the "Human x Car x Home" ecosystem.
Friday: Stock market dates, economic data, quarterly figures
- ex-dividend of individual stocks
- BB Biotech CHF 1.80
- Walmart 0.24 USD
- Quarterly figures / company dates Europe
- 07:00 Fuchs annual result
- 07:30 Salzgitter annual result
- 10:00 Fuchs | Salzgitter PK
- 11:00 Salzgitter Analysts' Conference
- 12:00 Fuchs Analyst Conference
- No time specified: BASF Annual Report
- Economic data
01:50 JP: Nationwide consumer prices February Forecast: n/a previous: +4.0% yoy Core consumer prices (ex food) Forecast: n/a previous: +3.2% yoy
08:45 FR: Business Climate Index March PROGNOSE: 97 previous: 97
10:00 EU: ECB, current account euro area January
16:00 EU: Eurozone Consumer Confidence Index (flash estimate) March FORECAST: -13.0 previous: -13.6
Untimed: BE: EU Summit, Brussels
