Western Digital shares soar following $20 billion merger report

Express Shares Slip 7% After Reporting Q2 Results

Shares of American retailer Express, Inc. (EXPR) are down 7 percent on Wednesday morning. The company swung to profit in the second quarter of this year, helped by a 86 percent increase in sales.

In the second quarter, the company posed net income of $10.6 million or $0.15 per share, compared to net loss of $107.8 million or $1.67 per share in the same period last year.

Excluding items, income was $1.7 million or $0.02 per share, compared to loss of $95.6 million or $1.48 per share in the last-year quarter.

On average, 3 analysts polled by Thomson Reuters expected the company to post loss of $0.30 per share in the quarter. Analysts’ estimates, usually, exclude one-time items.

Net sales for the period rose to $457.6 million from $245.7 million a year ago, while analysts were looking for revenues of $447.9 million.

Currently at $6.75, the stock has traded between $0.57 and $13.97 during the past 52 weeks.

Nordstrom Down Despite Reporting Better Quarterly Results

Nordstrom, Inc. (JWN) shares are sliding on Wednesday morning trade in spite of the company reporting profit versus loss last year for the second quarter.

For the three-month period, the company reported earnings of $80 million or $0.49 per share, compared to loss of $255 million or $1.62 per share in the previous year.

Wall Street analysts were looking for earnings of $0.28 per share on revenue of $3.31 billion.

Net sales for the quarter increased to $3.565 billion from $1.778 billion in the previous month. The sales were, however, down 6 percent from the 2019 levels.

Currently, shares are at $31.11, down 17.72 percent from the previous close of $37.81 on a volume of 8,073,980. For the 52-week period, the shares have traded in a range of $11.72-$46.45 on average volume of 3,499,317.

European Economics Preview: Germany Ifo Business Confidence Data Due

Business confidence data from Germany is due on Wednesday, headlining a light day for the European economic news.

At 3.00 am ET, Spain’s INE publishes producer prices for July. Prices had increased 15.3 percent annually in June.

At 4.00 am ET, German ifo business confidence survey results are due. The business sentiment index is seen falling to 100.4 in August from 100.8 in the previous month.

At 6.00 am ET, the Confederation of British Industry releases monthly Distributive Trades survey results for August. The retail sales balance is seen falling to 20 from 23 in July.

Autodesk Lifts FY22 Earnings Outlook

Autodesk Inc. (ADSK) Tuesday lifted its earnings outlook for the full year 2022.

Looking forward to the full year 2022, the software company now expects adjusted earnings of $4.91 to $5.06 per share and revenues of $4.35 billion to $4.39 billion. Previously, the company expected earnings of $4.67 to $4.97 per share and revenues of $4.31 to $4.39 billion.

Analysts polled by Thomson Reuters currently estimate earnings of $4.90 per share on revenues of $4.36 billion for the year.

For the third quarter, Autodesk expects adjusted earnings of $1.22 to $1.28 per share on revenues of $1.10 billion to $1.13 billion. Analysts currently estimate earnings of $1.26 per share on revenues of $1.11 billion.

The company’s second-quarter profit rose to $115.6 million or $0.52 per share from $98.2 million or $0.44 per share last year.

Adjusted earnings were $330.8 million or $1.21 per share for the period. Analysts had expected earnings of $1.13 per share.

The company’s revenue for the quarter rose 16.5% to $1.06 billion from $913.1 million last year. Analysts had a consensus revenue estimate of $1.05 billion.

“Robust growth in new product subscriptions, accelerating digital sales, and improving subscription renewal rates drove our strong second quarter results,” said Debbie Clifford, Autodesk CFO. “Our strong start to the year means we are raising our FY22 revenue and margin guidance and shifting more of our EBA customers from multi-year paid up front to annual billings, benefiting both our customers and Autodesk.”

Stellantis And Foxconn In JV For Smart Cockpit For Vehicles

Auto group Stellantis N.V. (STLA) and Taiwanese electronics giant Hon Hai Precision Industry Co., or popularly known as Foxconn, Tuesday announced a new joint venture, called Mobile Drive.

Mobile Drive will focus on making “smart cockpit” for vehicles that will feature navigation, voice assistance and payment services.

Mobile Drive will be equally owned by Stellantis and Foxcon. The partnership has combined Foxconn’s capabilities in ICT industry and smart solutions, with Stellantis’ expertise in the automotive sector, ensuring the growth of Mobile Drive.

“Its roadmap of software innovations will include artificial intelligence-based applications, navigation, voice assistance, e-commerce store operations, and payment services integration, amongst others,” the companies said in a joint statement.

Foxconn, whose key business is assembling Apple’s iPhones, are trying to expand its portfolio by investing in the auto business.

Meanwhile, Stellantis, the Dutch automotive group formed in 2021 with the merger of Italian-American conglomerate Fiat Chrysler Automobiles and the French PSA Group, plans to invest 30 billion euros in electric vehicles and new software over the next four years. The group plans to have 39 electrified vehicle models available by the end of 2021. There are four EV platforms planned to be developed by the end of the 2020s.

Western Digital shares soar following $20 billion merger report

  • Data storage and information technology company Western Digital is reportedly in talks to merge with Japanese memory chipmaker Kioxia Holdings.
  • The reported $20 billion-plus deal comes just months after the newspaper reported that both Western Digital and Micron Technology were looking into potential deals with Kioxia.

In this article

  • WDC

Shares of Western Digital were up more than 6% Wednesday afternoon following a Wall Street Journal report the company might merge with Japan's Kioxia Holdings in a $20 billion-plus deal.

The reported deal comes just months after the newspaper reported that both WD and chipmaker Micron Technology were looking into potential deals with the Japanese company.

A Western Digital spokesperson declined to comment on the report.

The deal, which Western Digital will reportedly pay for in stock, could finalize as early as mid-September, the Journal said, according to people familiar with the matter. The people added that Chief Executive David Goeckeler will likely continue to run the company.

Read the full story in the Wall Street Journal.