FTC to Block Amgen’s Acquisition
The Federal Trade Commission (FTC) is set to block Amgen’s (NASAQ:MAGN) proposed acquisition of Horizon Therapeutics (NASDAQ:HZNP), signaling a renewed effort by antitrust enforcers to prevent mergers in the pharmaceutical industry. According to a person familiar with the matter, the FTC plans to seek an injunction in federal court to halt the deal from closing. The injunction would require approval from a federal judge and is part of the agency’s standard procedure to prevent mergers it deems unlawful.
Home Depot Anticipates Sales Decline
Home Depot (NYSE:HD), the home-improvement chain, anticipates a decline in annual sales for the first time in over a decade due to tightening consumer spending and softening demand for home renovation projects. Previously expecting sales to remain flat in fiscal 2023, Home Depot now projects a decrease between 2% and 5%. In the first quarter, the company reported a 4.2% drop in revenue, totaling $37.26 billion, missing analyst forecasts.
Envision Healthcare Bankruptcy Filing
Envision Healthcare, a physician-staffing company, has filed for chapter 11 bankruptcy, initiating one of the largest healthcare-related bankruptcy cases to date. This action is likely to result in the erasure of the $3.5 billion stake acquired by private-equity firm KKR in 2018. The loss on Envision would represent a significant write-down for KKR, highlighting the ongoing instability in the healthcare industry.
Baker Hughes Shifts Dividend Focus
Baker Hughes (NASDAQ:BKR), an oil-field-services company, is undergoing a philosophical shift as its new finance chief prioritizes raising dividends over share buybacks. Following a restructuring period aimed at boosting profit margins and reducing costs, Baker Hughes plans to assess the pace and rate at which it will increase dividends this summer. Chief Financial Officer Nancy Buese, serving in the role for approximately six months, intends to make a recommendation to the board later this year.
Venture Funds’ Negative Returns
Venture funds experienced negative returns for three consecutive quarters in 2022, marking the first time in over a decade, according to PitchBook Data. Investors began devaluing startups that had previously seen significant increases in value, leading to negative quarterly returns. The data also reveal that the internal rate of return for the year hit a low of minus 7% in the third quarter of 2022, the lowest value since 2009. The internal rate of return serves as a key performance metric to assess the profitability of venture funds on an annual basis.
Sea Ltd.’s Challenging Earnings
Sea Ltd. (NYSE:SE) experienced a decline in its stock price following the announcement of earnings that fell short of estimates. The company faced challenges as gaming revenue plummeted by 43% and incurred a one-time charge exceeding $100 million, increasing the pressure to maintain profitability. Despite achieving a second consecutive quarterly profit, Sea Ltd.’s revenue only grew by 5%.
Singapore Airlines’ Record Profit
Singapore Airlines Ltd. (SGX:C6L) announced a record annual profit for the fiscal year ending in March, highlighting healthy forward sales across all cabin classes, with notable bookings to China, Japan, and South Korea. The group, which includes the budget arm Scoot, achieved a net income of S$2.16 billion ($1.62 billion). Notably, revenue surged to S$17.78 billion from S$7.6 billion, reflecting a significant increase.
Boohoo Group Outperforms Asos
Boohoo Group Plc (LSE:BOO) shares are outperforming its online fast-fashion competitor, Asos Plc, as the Manchester-based company surprised investors by generating cash despite UK consumers reducing spending amid the cost-of-living crisis. Boohoo’s full-year results, released on Tuesday, exceeded expectations, leading to a surge in stock value of up to 17%. Conversely, Asos (LSE:ASC) shares have faced a decline of 34% since the retailer’s first-half results, reported last Wednesday, fell short of estimates.