Hot Stocks: NCLH, ON rise on earnings; XOM slip on analyst downgrade; NNOX up on FDA approval; GPN slide
Michael M. Santiago
During Monday's intraday session, major market averages were mostly up after federal officials seized First Republic Bank (FRC) and sold its deposits and the majority of its assets to JPMorgan Chase (JPM).
Looking at the specific stocks, Norwegian Cruise Line (NYSE:NCLH) and On Semiconductor (NASDAQ:ON) shares increased on the back of positive Q1 earnings, while Global Payments (NYSE:GPN) shares fell.
Meanwhile, Exxon Mobil (NYSE:XOM) shares fell as a result of an analyst downgrade.
In other news, Nano-X Imaging (NASDAQ:NNOX) shares climbed after the US FDA granted 510(k) clearance to market the Nanox.ARC X-ray system.
Gainers
Norwegian Cruise Line (NCLH) shares sailed higher about 7.5% after topping Q1 earnings expectations due to lower operating expenses. The cruise line operator's cumulative booked position for 2023 continues to be ahead of 2019 at record levels and higher pricing.
On Semiconductor (ON) shares increased by almost 7% as a result of positive Q1 earnings and Q2 expectations. For the second quarter, the company anticipates sales in the range of $1.972B to $2.075B, compared to the consensus of $1.93B; adjusted EPS in the range of $1.14 to $1.28, compared to the consensus of $1.06.
Nano-X Imaging (NNOX) shares jumped more than 45% after the FDA approved Nanox.ARC X-ray system. Nanox.ARC is a "multi-source digital 3D tomosynthesis system that utilizes novel, cold cathode X-ray tubes." The FDA cleared the system for use in healthcare âfacilities or âradiological âenvironments, such as âhospitals, clinics, and imaging âcenters.
Decliners
Exxon Mobil (XOM) shares dipped about 3% after Goldman Sachs downgraded the stock to Neutral from Buy with a $125 price target following the stock's sharp multi-year outperformance. "That said, the valuation of Exxon Mobil now appears to better reflect the structural turnaround in the business, with shares trading at a 7% free cash flow yield on 2024 estimates at $85/bbl Brent," Goldman analyst Neil Mehta wrote.
Despite positive Q1 earnings and an increase in FY2023 outlook, Global Payments (GPN) shares fell more than 7%. Cameron M. Bready, presently President and COO, was named to succeed Jeffrey S. Sloan as President and CEO. For 2023, the company expects adjusted net revenue of $8.635B-$8.735B, vs. $8.60B consensus, an increase from 6%-7% in the previous target range. Adjusted EPS is expected to be $10.32-$10.44, vs. $10.31 consensus, up from 10%-11% in the prior view.
To keep track of Wall Street's biggest winners and losers throughout the session, head over to Seeking Alpha's On The Move section.
Also read: Regional bank stocks mixed after JPMorgan acquires First Republic deposits, assets