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UnitedHealth’s recent ’25 outlook is available in under forecasts. (0:15) Novo Nordisk tumbles because it warns on weight problems drug gross sales. (1:31) Union Pacific and Northern Southern seal merger. (5:07)
That is an abridged transcript of the podcast:
Our prime story thus far, UnitedHealth (UNH) shares proceed to battle after the corporate issued a recent outlook for 2025, indicating income and adjusted earnings under Road forecasts amid a pointy enhance in its medical bills.
The inventory, within the pink as we speak, has misplaced greater than half its worth because it warned on the outlook in April and since confronted a sequence of adverse headlines, together with the abrupt departure of its CEO and a probe into its Medicare enterprise.
With its Q2 outcomes, which missed on the underside line, the corporate projected EPS of $16 on $445.5 billion to $448 billion in income. Analysts have been searching for EPS of $20.90 and income of $449.07 billion.
UNH attributed the associated fee enhance to medical price tendencies that sharply outweighed pricing tendencies and an ongoing impression of Medicare funding reductions.
New CEO Stephen Hemsley stated: “UnitedHealth Group has launched into a rigorous path again to being a high-performing firm absolutely serving the well being wants of people and society broadly.”
UNH reported $111.6 billion in income for the quarter, up about 13% yearly and consistent with Road forecasts, thanks primarily to its insurance coverage unit, UnitedHealthcare, and Optum division.
Looking for Alpha analyst YR Analysis stated, “it is now as much as administration to persuade traders that that is the ground and that the authorized and fraud allegations are insignificant.”
Additionally within the healthcare sector, Novo Nordisk (NVO) is tumbling after the Danish drugmaker lowered its full-year outlook, citing, amongst different issues, strain on its weight problems drug franchise led by its GLP-1 medicine semaglutide.
On the identical time, the corporate named Maziar Mike Doustdar as its new president and chief govt officer, efficient Aug. 7, after the present CEO agreed to step down in Could. Doustdar is at present govt vp of Worldwide Operations.
Eli Lilly (LLY), Novo’s essential rival within the weight reduction drug market, and Hims & Hers Well being (HIMS), which makes compounded variations of semaglutide, are additionally going through promoting.
With its H1 2025 outcomes, Novo Nordisk set its full-year development outlook for gross sales and working revenue at 8% – 14% and 10% – 16% on a currency-adjusted foundation, in comparison with 13% – 21% and 16% – 24% projected in Could.
The corporate cited decrease development expectations within the U.S. associated to Wegovy and Ozempic, the FDA-approved variations of semaglutide indicated for weight problems and diabetes.
And Merck (MRK) is chopping $3 billion from its annual bills because it prepares for generic competitors to its blockbuster most cancers drug, Keytruda.
The corporate issued an up to date outlook for full-year 2025, anticipating gross sales of $64.3 billion to $65.3 billion (prior: $64.1 billion to $65.6 billion) and adjusted EPS of $8.87 to $8.97 (prior: $8.82 to $8.97). Consensus is full-year EPS of $8.87 on income of $64.93 billion.
Amongst different lively shares, United Parcel Service (UPS) is below strain after the supply firm issued a blended Q2 earnings report. Income was 3.4% decrease than a 12 months in the past in the course of the quarter to $21.2 billion and adjusted EPS got here in at $1.55 vs. $1.57 consensus and $1.79 a 12 months in the past.
UPS nonetheless didn’t present income or working revenue steering as a result of present macroeconomic uncertainty, however confirmed that it anticipates capital expenditures of about $3.5 billion and share repurchases of round $1 billion, which have been accomplished.
Procter & Gamble (PG) beat fiscal This autumn earnings estimates. Natural gross sales elevated 2% to edge previous the consensus estimate of up 1.8%.
CEO Jon Moeller stated: “We grew gross sales and revenue in fiscal 2025 and returned excessive ranges of money to share house owners in a dynamic, troublesome and unstable setting.”
And PayPal (PYPL) stated bills rose greater than anticipated as money move declined. Whole working bills of $6.78 billion topped the Seen Alpha consensus of $6.24 billion, up from $6.26 billion in Q1.
However the firm boosted steering on the underside line for the complete 12 months. It now expects 2025 non-GAAP EPS of $5.15-$5.30, in contrast with the $5.09 consensus and its earlier steering of $4.95-$5.10.
In different information of word, U.S. smartphone shipments rose by 1% in Q2 as distributors front-loaded stock amid tariff issues. Samsung (OTCPK:SSNLF) noticed robust development, however Apple (AAPL) noticed a uncommon double-digit decline,
Analysis agency Canalys stated Samsung shipped 8.3 million items in Q2, a 38% year-over-year enhance, boosting its market share to 31% from 23%.
Apple’s shipments dropped 11% to 13.3 million items, down from 14.9 million a 12 months earlier. Nonetheless, Apple retained the highest place with a 49% share of the U.S. market, forward of Samsung’s 31%.
Analysts at Canalys stated distributors proceed to front-load units and keep excessive stock ranges to greatest address the chance of tariffs. However simply 1% development total indicated tepid demand in an more and more pressured financial setting “and a widening hole between sell-in (to retailers) and sell-through (to clients).”
And Union Pacific (UNP) and Norfolk Southern (NSC) sealed their beforehand reported deal to create America’s first one-company transcontinental railroad.
The businesses stated they’ll seamlessly join over 50,000 route miles throughout 43 states from the East Coast to the West Coast, linking roughly 100 ports and practically each nook of North America. s.
Underneath the phrases of the settlement, Union Pacific will purchase Norfolk Southern in a inventory and money transaction, implying a price for Norfolk Southern of $320 per share primarily based on Union Pacific’s unaffected closing inventory value on July 16. The worth per share implies an enterprise worth of $85 billion, ensuing within the creation of a mixed enterprise of over $250 billion.
Editor’s Notice: This text discusses a number of securities that don’t commerce on a serious U.S. trade. Please pay attention to the dangers related to these shares.
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