Latest news with #Bernstein
Reuters
8 hours ago
- Business
- Reuters
Merck extends pause on China Gardasil shipments to year end, shares slip
July 29 (Reuters) - Merck (MRK.N), opens new tab said on Tuesday it was extending its pause on Gardasil shipments to China until at least the end of 2025 due to persistent weakness in demand for the blockbuster human papillomavirus vaccine, sending its shares down as much as 8%. The drugmaker, which reported lower second-quarter results, had previously said the pause would last at least until the middle of this year. It had suspended the shipments in February. Gardasil has been one of Merck's top growth drivers aside from blockbuster cancer immunotherapy Keytruda, and much of its international growth has come from China. Softer Gardasil demand in Japan also hurt Merck's sales, and the region is expected to be a "more significant headwind" in the back half of the year. "The Gardasil pain looks like it might drift into 2026 - credibility for management on this topic is still a sore point," said Bernstein analyst Courtney Breen. Merck CFO Caroline Litchfield tried to reassure investors and said that "Gardasil China represents a fraction of our company now, much less than 1%, we're not counting on it for growth." The company on Tuesday also announced job and cost cuts that it said will save $3 billion annually by the end of 2027, and kept its outlook for tariff-related costs unchanged at $200 million, pending any additional potential government actions. The cost cuts include $1.7 billion in annual savings from the elimination of certain administrative, sales and R&D positions, Merck said. It also plans to reduce its global real estate footprint and optimize its manufacturing network. "We are looking to reallocate money and resources from the slower growth areas of the business to fully fund fast-growing areas of our business," CEO Rob Davis said on the second-quarter earnings call. The company is focusing on newer drugs, including lung disease treatments Winrevair and Ohtuvayre, which was recently acquired in a $10 billion takeover of UK-based Verona Pharma. Investors have, however, been concerned about how Merck would replace revenue from Keytruda, the world's best-selling drug, which is set to lose patent protection toward the end of the decade. Declining sales of Gadrasil have added to Merck's pain. Shares of the company have lost more than 36% of their value since Merck first flagged weakness in China sales of the vaccine last year. Second-quarter sales of Gadrasil missed Wall Street's lowered estimates, according to data compiled by LSEG. Merck sold $1.1 billion of the vaccine, down 55% from a year ago. The acquisition of Verona "was a good first step, but investors want to see further evidence, either through additional M&A or pipeline successes, that Merck can offset the coming decline in Keytruda sales," said James Harlow, senior vice president at Novare Capital Management. Merck earned $5.4 billion, or $2.13 a share, in the second quarter, down 7% from a year earlier. Analysts had forecast earnings of $2.01. Revenue in the quarter fell 2% to $15.8 billion, compared with analysts' estimate of $15.9 billion. The company now expects to earn $8.87 to $8.97 a share in 2025, above analysts' estimates of $8.87.
Yahoo
11 hours ago
- Business
- Yahoo
Qualcomm (QCOM) Q2 Earnings Preview: What to Expect From Upcoming Report
July 29- Qualcomm (NASDAQ:QCOM) will reveal Q3 FY2025 results on July 30 after the market close. Wall Street expects adjusted EPS of $2.71, a 16.3% rise from a year ago, and revenue of $10.34 billion, up 10.1%. Investors eye the report amid worries that Apple (NASDAQ:AAPL) will shift to in?house modem chips next year, potentially trimming Qualcomm's handset chip sales. Smartphone market pressures and tariff risks in China also weigh on sentiment. Warning! GuruFocus has detected 6 Warning Signs with QCOM. Still, analysts note Qualcomm's growing footprint in IoT, automotive and edge AI. Bernstein's Stacy Rasgon keeps a Buy rating with a $185 target, calling Qualcomm heavily out of favor yet undervalued given its diverse product lineup and expected double?digit earnings growth. He says it's worth keeping on investors' radar. KeyBanc envisions wider semiconductor power with the help of demand in A as well as new product ramps. It predicts positive prospects of Qualcomm in Q3 but warns that second part of 2025 can have backdrafts due to Apple moving to other modems and sluggish Android market in China. The results will help to understand what degree of offset of challenges related to the handset is possible to be achieved by the divisions, which are engaged with non-smartphone, and whether Qualcomm will be able to quality its growth trend up to the end of the year. Based on the one year price targets offered by 30 analysts, the average target price for Qualcomm Inc is $177.50 with a high estimate of $225.00 and a low estimate of $140.00. The average target implies a upside of +10.21% from the current price of $161.05. Based on GuruFocus estimates, the estimated GF Value for Qualcomm Inc in one year is $160.62, suggesting a downside of -0.27% from the current price of $161.05. Gf value is Gurufocus' estimate of the fair value that the stock should be traded at. It is calculated based on the historical multiples the stock has traded at previously, as well as past business growth and the future estimates of the business' performance. For deeper insights, visit the forecast page. This article first appeared on GuruFocus.
Business Insider
17 hours ago
- Business
- Business Insider
What's Ahead for UnitedHealth (UNH) as Stock Drops 44% YTD?
UnitedHealth Group (UNH), the largest healthcare provider, is now one of the worst-hit stocks of 2025. Down 44% year-to-date, UNH stock was dragged down by rising costs in its Medicare Advantage business, a surprise CEO exit, and intensifying federal scrutiny into its billing practices. Currently, investors are looking for updates on the company's progress on the legal and financial front at the Q2 earnings, due July 29. Elevate Your Investing Strategy: Take advantage of TipRanks Premium at 50% off! Unlock powerful investing tools, advanced data, and expert analyst insights to help you invest with confidence. What Went Wrong? The selloff in UNH stock began in April when UnitedHealth missed earnings and slashed its full-year guidance. This was followed by the resignation of CEO Andrew Witty in May. Also, last week, the company confirmed it is under both criminal and civil investigations by the Department of Justice. The probe centers on alleged overbilling in its Medicare Advantage program, specifically whether patient diagnoses were inflated to boost government reimbursements. Analysts Are Not That Bearish Despite the turmoil, Wall Street sentiment is mixed but not entirely bearish. Bernstein even named UNH a 'Top Pick,' citing its discounted valuation and long-term earnings potential. Further, the firm expects a doubling of EPS by 2029, driven by sector recovery and company-specific margin recovery. Others are more cautious. Wells Fargo and Truist Financial recently lowered their price targets, citing weak investor sentiment and concerns around Optum Health, UnitedHealth's services arm. All Eyes Are on UNH's Q2 Results Currently, analysts anticipate that Q2 earnings will fall to $4.48 from $6.80 a year ago. Meanwhile, revenue is expected to grow 12.8% to $111.50 billion. The bottom-line drop reflects higher-than-expected medical costs, especially in Medicare Advantage, which have hurt the company's margins. More than the Q2 numbers, investors are focused on CEO Stephen Hemsley offering a roadmap for recovery, including updated 2025 guidance and early signals for 2026. A full-year EPS outlook of below $18 could result in investors losing more confidence and trigger further selling. Is UNH a Good Buy Right Now? Turning to Wall Street, UNH stock has a Moderate Buy consensus rating based on 18 Buys, five Holds, and one Sell assigned in the last three months. At $348.12, the average UnitedHealth stock price target implies a 24.11% upside potential.
Yahoo
a day ago
- Business
- Yahoo
Josh Brown Gives Followers ‘Permission' to Sell NVIDIA (NVDA) Shares – Here's Why
NVIDIA Corp (NASDAQ:NVDA is one of the . Josh Brown, CEO of Ritholtz Wealth Management, recently said during a program on CNBC that he is giving 'permission' to his followers to sell NVIDIA Corp (NASDAQ:NVDA) shares and take some profits amid the stock's strong performance. However, the analyst said he is not selling Nvidia shares. 'I'm not selling. I'm giving people permission. Let me give you the context. On the China front, let's just do this quickly. Bernstein reiterated Nvidia, $185 target. And what they said was that for every 10 billion dollars in recovered revenue in China, meaning business we didn't think they could do up until a few days ago, that could add 25 cents to Nvidia's earnings per share. So they say that could be like 40–50 cents in 2026 if they capture back 15 to 20 billion worth of China revenue. Great news. Happy to hear that as a long. Be that as it may, put that aside. We'll assume Bernstein has it roughly right.' Brown said over the past few years, he's seen 'mostly ups' holding NVIDIA Corp (NASDAQ:NVDA) shares 'People walk up to me on the street. They come to me at stores, airports, you name it. The question that I'm getting the most over the last month or so is not, 'Do you still like Nvidia?' It's, 'Should I sell some Nvidia?' And I totally get it. Look at what the stock has just done. It's really remarkable.' Photo by Vishnu Mohanan on Unsplash With its latest numbers and stock performance, Nvidia was able to prove the skeptics wrong. In its recently reported quarter, Nvidia's data center computer revenue rose 76% year over year, driven by Blackwell GB200. The company is finding new catalysts for growth. Saudi Arabia's Humain plans to buy more than 200,000 AI GPUs from Nvidia, potentially generating $15 billion in sales. The UAE reportedly has an agreement for up to 500,000 GPUs. Even without China's involvement for now, Nvidia said nearly 100 AI factories are under construction. These factories have hyperscalers deploying 1,000 GB200 NVL72 racks weekly, each with 72,000 Blackwell GPUs. Patient Capital Opportunity Equity Strategy stated the following regarding NVIDIA Corporation (NASDAQ:NVDA) in its second quarter 2025 investor letter: 'NVIDIA Corporation (NASDAQ:NVDA) recovered strongly in the second quarter, climbing back from earlier declines to end the quarter at an all-time high. As the undisputed leader in Graphics Processing Units (GPUs), Nvidia continues to benefit from surging demand for AI training and inference. Despite concerns over competition from TPUs and rivals like AMD, Nvidia remains in the lead. The company is rapidly releasing next-gen products, with the Blackwell line-up, its fastest architecture yet, hitting the market just 2 years after its predecessor. Moreover, Nvidia is aggressively expanding into adjacent areas including robotics, edge AI, AI cloud leasing, and AI software putting them in direct competition with some of their biggest customers. CEO Jensen Huang describes Nvidia as a 'full-stack, accelerated computing platform', reflecting its blend of cutting-edge hardware, software (CUDA), and AI infrastructure. With leading-edge tech, a shortening innovation cycle, and robust cash flow, we believe Nvidia is well positioned to ride the accelerating wave of AI adoption.' While we acknowledge the potential of NVDA as an investment, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and have limited downside risk. If you are looking for an extremely cheap AI stock that is also a major beneficiary of Trump tariffs and onshoring, see our free report on the . READ NEXT: 30 Stocks That Should Double in 3 Years and 11 Hidden AI Stocks to Buy Right Now. Disclosure: None. This article is originally published at Insider Monkey. Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Yahoo
a day ago
- Business
- Yahoo
Ether Treasuries Target Yield, but Risk Looms, Says Wall Street Broker Bernstein
Ether ETH treasury firms are emerging with a new playbook: Treat the cryptocurrency not just as a reserve asset, but as yield-generating capital. In recent months, several companies have unveiled ether treasury strategies that generate passive yield through ETH staking. These include BitMine Immersion Technologies (BMNR) and SharpLink Gaming (SBET). According to a report from Wall Street broker Bernstein published on Monday, these companies are structuring treasuries around the second-largest cryptocurrency, staking assets to earn operating income while supporting the network's financial base. While bitcoin (BTC) treasuries like Strategy's (MSTR) favor liquidity and passive holding, ether treasuries are leaning into staking yields, currently just under 3%, though historically ranging between 3%–5%, the report noted. A $1 billion ether treasury could generate $30million–$50 million in annual yield, Bernstein estimates. But with that income comes complexity. Ethereum's staking model offers yield to holders rather than miners, requiring active capital deployment and more intensive risk oversight. Unlike Strategy's highly liquid bitcoin reserves, ether staking introduces liquidity constraints. Unstaking can take days, creating potential mismatches in times of volatility. More advanced strategies, such as re-staking or decentralized finance-based (DeFi) yield farming, amplify smart contract and security risks, the report said. Treasury managers will need to balance yield optimization with institutional-grade custody and risk infrastructure. Still, Bernstein expects leading ether treasuries to manage these trade-offs effectively. With nearly 30% of ether supply staked and another 10% locked in DeFi, combined with ongoing ETF inflows, the report suggests strong structural demand for ETH in the near-to-medium term. Supply, meanwhile, remains relatively flat. The analysts remain bullish on ether and its ability to support treasury-scale capital strategies, as long as liquidity and risk are handled with in to access your portfolio
