Warren Buffett's Berkshire Hathaway has reached an agreement with DaVita (DVA), allowing the company to buy back shares exceeding its 45%
https://seekingalpha.com/news/4098627-davita-stock-gains-berkshire-hathaway-share-buybacks
Thursday, May 2, 2024
Pulmonx strong quarter on market growth
Revenue: $18.9 million in Q1 2024, a 30% increase year-over-year.
Gross Margin: Improved to 75% in Q1 2024 from 73% in the previous year.
Net Loss: Reduced to $13.7 million in Q1 2024 from $15.9 million year-over-year.
Earnings Per Share (EPS): Loss of $0.36 per share in Q1 2024, improved from a loss of $0.42 per share in the same period last year.
Operating Expenses: Increased to $28.6 million in Q1 2024 from $27 million in Q1 2023.
Adjusted EBITDA Loss: Reduced to $8 million in Q1 2024 from $11.2 million in Q1 2023.
Cash Position: Ended Q1 2024 with $120.4 million in cash, cash equivalents, and marketable securities.
Full Year Revenue Guidance: Reiterated at $81 million to $84 million for 2024.
Store Locations: Added 9 new Zephyr Valve centers in the U.S., total now 346.
Cigna posts $277M loss in Q1 2024
The Cigna Group posted a $277 million loss in the first quarter on the back of investment losses, according to its earnings report released Thursday.
The company said that it posted a $1.8 billion after-tax investment loss in the quarter that was "related to the impairment of VillageMD equity securities." By comparison, Cigna reported $1.3 billion in profit in the first quarter of 2023.
The results did surpass Wall Street analysts' predictions, as, after adjusting for investments and amortization, earnings came in at $6.47 cents. That beats the $6.17 consensus.
Cigna reported $57.3 billion in revenue for the quarter, which also beat the Street. The company brought in $46.5 billion in revenue in the prior-year quarter, according to the report.
"Our strong first quarter results reflect the performance of our Evernorth and Cigna Healthcare businesses, as well as our leadership in addressing the evolving needs of those we serve with the breadth of our differentiated capabilities," said David Cordani, chairman and CEO of The Cigna Group, in the press release.
Despite the loss, Cigna is boosting its outlook for 2024 and now expects to bring in at least $235 billion in revenue as well as at least $28.40 in earnings per share.
The company had nearly 19.2 million members as of the first quarter, down from 19.8 million at the end of 2023, according to the report. It says these membership declines were largely in the individual and family plan space, "driven by targeted pricing actions in certain geographies."
The number of pharmacy benefits members, meanwhile, grew to 122.8 million in the first quarter. Cigna boasted about 98.6 million pharmacy members at the end of 2023. A major factor in the jump was the onboarding of Centene members, which also dinged CVS' earnings on Wednesday as the massive client officially made the switch at the beginning of this year from Caremark to Express Scripts.
The Evernorth Health Services division, which houses Express Scripts, brought in $46.2 billion in revenue, up from $36.2 billion in the first quarter of 2023. Cigna noted that this reflected the addition of new, large clients as well as growth in specialty and care services.
Cigna Healthcare, the medical benefits segment, brought in $13.3 billion in revenue for the first quarter, up from $12.7 billion in the prior-year quarter. Cigna had a notably lower medical loss ratio than some of its peers this quarter, reporting a 79.9% MLR. The insurer, however, has far less exposure in the Medicare Advantage space.
https://www.fiercehealthcare.com/payers/cigna-posts-277m-loss-first-quarter-2024
Pop-Tarts maker Kellanova tops estimates on steady demand, higher prices
Pop-Tarts maker Kellanova on Thursday beat Wall Street estimates for first-quarter sales and profit on higher prices and firm demand for its breakfast cereals and ready-to-eat snacks, sending its shares up about 9% in early trading.
Kellanova's diverse portfolio, which includes Grahams Crackers, Nutri-Grain breakfast bars and frozen food like Morningstar Farms, and premium pricing have helped mitigate the impact of some consumers shifting to lower-priced alternatives.
The company said prices rose 8.5% in the quarter, while organic sales volumes fell 3.1%.
"In the near-term, however, it is evident volumes will be critical for the company to see top-line growth as there's likely no more room to push pricing further as consumers remain under pressure," Third Bridge analyst John Oh said.
Kellanova's reported net sales of $3.20 billion in the three months ended March 30, beat analysts' expectations of $3.16 billion, according to LSEG data.
The company, also home to internationally recognized cereal brands such as Frosties and Special K, posted an adjusted profit of $1.01 per share for the quarter, surpassing expectations of 85 cents.
Higher prices also helped drive its adjusted gross margin to 35.7% from 31.0% a year earlier.
Peer Conagra Brands also posted upbeat quarterly results last month, helped by a rebound in demand for its pantry staples and frozen foods.
https://finance.yahoo.com/news/kellanova-posts-upbeat-q1-results-125906260.html
Herbalife shares jump after company raises adjusted profit forecast
Shares of Herbalife (HLF) jumped after hours on Wednesday after the company raised its full-year adjusted profit forecast. The wellness marketing platform raised its full year forecast for adjusted Ebitda - or earnings before interest, taxes, depreciation and amortization - to $550 million to $590 million, from a prior outlook for $540 million to $580 million. The company stuck with its full-year sales forecast for flat to 5% growth.
Bill Gross Investment Outlook: ' They Just Wanna Sell You a Bond Fund'
Legendary bond and fixed income pioneer William H. (Bill) Gross today released a new Investment Outlook, "They Just Wanna Sell You a Bond Fund." In his latest Outlook, Mr. Gross declares that the "total return" bond fund concept he helped originate and popularize almost four decades ago, "is dead" and that he disagrees with "investment managers touting bullish forecasts for 4.60% 10-year Treasuries."
By way of background, Mr. Gross writes: "This concept of 'total return' was a phrase Pimco originated in the depths of the bond bear market in the early 1980's. Such commonsensical brilliance emanated from a 15%, 30-year Treasury yield and the observation that based on rock bottom durations of 6-7 years they could go to 17.5% before an investor would be in the red. Not slam dunk at the time but close. Thus, managers were able to reverse the past reality of 'certificates of confiscation' for which they were known at the time and produce a 'total return' that was positive. Worked for a long time, until the summer of 2020 when 10-year yields bottomed at 53 basis points and these 'investments' came to resemble Sisyphus headed downhill — 2 steps down, one step back up in price. Because yields were near 0%, not 15%, and durations were now in the 20+ year category, total return was dead."
Bottom line, writes Mr. Gross, "Total Return is dead. Don't let them sell you a bond fund."
Full text of Bill Gross's May 2, 2024, Investment Outlook can be found at his website.
Organogenesis Achieves Primary Endpoint in Phase 3 ReNu® for Knforee Osteoarthritis
- Statistically significant (p=0.0177) reduction in knee pain at six months
- Statistically significant (p<0.0001) maintenance of function at six months
- Transformational opportunity for Organogenesis to enter large and growing pain management market with innovative therapy
- Will address critical unmet medical need for all knee OA patients, including the most severe, if approved
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