These are stocks that make moves on quarterly earnings reports before the U.S. market opens on Tuesday:
UBS Profit Halves As Cost of Old Toxic Debt Mounts
UBS Group AG on Tuesday reported a 52% slide in profit for the first quarter due to an increase in legal provisions for a legacy litigation matter.
The result comes at a tumultuous time for the Swiss bank after it was forced into taking over former rival Credit Suisse.
Net profit attributable to shareholders came in at $1.03 billion versus the $1.71 billion average of 15 analyst estimates in a UBS-conducted poll.
Shares of UBS Group slid 1.46% in premarket trading.
First Republic Stock Plummets 21% After Revealing "Unprecedented" Deposit Flight, Layoff Plans
First Republic Bank's stock fell 21% in premarket trading on Tuesday despite stronger-than-expected first-quarter profit from the bank, as deposits disappeared amid concerns about regional banks.
San Francisco-based lender First Republic said that deposits fell 41% in the quarter, though withdrawals have stabilized in April. Executives plan to reduce the bank's workforce by 20% to 25% in the current quarter. Based on the bank's 7,213 full-time employees as of Dec. 31, as disclosed in its annual report, the layoffs could affect up to 1,800 people.
Novartis, Helped By Cost Cuts, Raises Full-Year Outlook
Novartis on Tuesday raised its full-year earnings outlook following cost cuts, a breast cancer drug trial success and progress in boosting output of a radiotherapy drug against prostate cancer.
First-quarter group sales rose 3% to $12.95 billion, above an analyst consensus of $12.6 billion Refinitiv Eikon data showed.
New drugs Kesimpta, a once-a-month injection against multiple sclerosis, and breast cancer treatment Kisqali also contributed to sales growth, Novartis said.
Shares of Novartis rose 3% in premarket trading.
Spotify's Monthly Active Users Rise Above 500 Million, Beats Estimate
Spotify Technology SA on Tuesday reported first-quarter monthly active users that crossed the half billion mark for the first time helped by the music streaming company's expansion into more markets.
The number of monthly active users rose to 515 million in the quarter, beating Spotify's guidance and analysts' forecasts of 500 million, according to IBES data from Refinitiv.
Premium subscribers, who account for most of the company's revenue, rose 15% to 210 million, topping estimates of 206 million.
Shares of Spotify rose 5% in premarket trading.
PepsiCo Raises Annual Forecasts on Buoyant Demand, Price Hikes
PepsiCo Inc on Tuesday raised its annual sales and profit forecasts after beating first-quarter revenue estimates on the back of steady demand for its sodas and snacks, as well as price hikes undertaken to offset rising costs.
Major consumer goods companies hiked prices to battle skyrocketing costs of everything from aluminum cans to labor and shipping triggered by supply-chain disruptions during the pandemic and aggravated by the Russia-Ukraine conflict.
Shares of PepsiCo rose 0.4% in premarket trading.
UPS Profit Falls on Lower E-Commerce Demand
United Parcel Service Inc said on Tuesday it expects full-year revenue to be at the lower end of its earlier forecast as the freight bellwether grapples with a weakening economy, sending its shares down 5% in premarket trade.
GM Raises Full-Year Profit Forecast, Citing Strong Pricing, Demand
General Motors Co on Tuesday lifted its full-year profit and cash flow forecasts, citing stronger-than-expected demand and higher prices, even as pre-tax profits for the first quarter fell.
The No. 1 U.S. automaker said it expects full-year pre-tax profits in a range between $11 billion and $13 billion, up $500 million from a prior forecast. Automotive cash flow for the year should land in a range between $5.5 billion and $7.5 billion, the company said. That range is also increased by $500 million at the upper and lower ends.
Shares of GM rose 3% in premarket trading.
3M to Cut 6,000 Positions Globally
3M Co said on Tuesday it would cut about 6,000 positions globally as the U.S. industrial conglomerate looks to restructure its business amid waning demand and increasing costs.
Shares of the St. Paul, Minnesota-based company were up 0.9% at $106 premarket.
Verizon Misses First-Quarter Estimates for Revenue, Wireless Subscribers
Verizon Communications Inc on Tuesday missed first-quarter revenue estimates and reported wireless subscriber losses as a pandemic-led boom in demand fizzled out.
While some of that impact was offset by a surge in the broadband business thanks to Verizon scaling up the technology behind 5G connectivity, its fast-growing rivals AT&T Inc and T-Mobile are catching up with increased promotions and more developed 5G networks.
Shares of Verizon rose 0.7% in premarket trading.
McDonald’s Tops Sales Estimates as Diners Shrug Off Price Rises
McDonald’s Corp. reported first-quarter sales and profit that outpaced analysts’ projections, a renewed sign that the burger chain is picking up customers amid stubborn inflation and higher menu prices.
The key metric of comparable sales rose nearly 13% above the average estimate of 8.2% compiled by Bloomberg. US results also handily topped projections by that measure, with the company adding that comparable guest counts rose. Earnings in the quarter, excluding some items, were $2.63 a share, also beating estimates.
Shares of McDonald’s rose 0.62% in premarket trading.
Biogen Beats Profit Estimates on Strong Spinraza Sales
Biogen Inc on Tuesday beat expectations for quarterly profit on strong sales of spinal muscular atrophy drug Spinraza, but said it would pause or discontinue some studies to cut costs.
The drugmaker also reaffirmed its full-year adjusted profit forecast of $15 to $16 per share.
The company is betting on its second Alzheimer's disease treatment, Leqembi, and depression drug zuranolone to offset slowing sales of Spinraza and multiple sclerosis drug Tecfidera.
Shares of Biogen Inc slid 1.38% in premarket trading.
