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Tag: Industrial Goods

  • Intel files for Mobileye IPO, creating a share structure that will keep the chipmaker in control

    Intel files for Mobileye IPO, creating a share structure that will keep the chipmaker in control

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    After nearly a year’s wait, Mobileye is on the highway to Wall Street.

    Intel Corp.
    INTC,
    -2.31%
    -owned Mobileye Global Inc. launched its drive to an initial public offering in a Securities and Exchange Commission filing late Friday, leaving the size of the offering blank for now on what is expected to be one of the largest IPOs of the year.

    Intel executives were targeting mid-2022 as of late last year, and filed confidentially with the SEC in March for the IPO of its self-driving-car unit, but the IPO market has been dry amid a decline for stocks, especially those that went public in a 2021 rush.

    Mobileye plans to trade Class A shares of common stock on the Nasdaq exchange under the symbol “MBLY,” the same symbol the company had before Intel acquired Mobileye in 2017 for $15.3 billion in cash. While selling shares in Mobileye, Intel will retain official control of the company, keeping class B shares that carry 10 votes apiece while selling class A shares that have only one vote.

    Mobileye also plans to have four Intel-affiliated members on its board, including Chief Executive Pat Gelsinger serving as chairman of Mobileye’s board.

    Intel will also get paid from the offering: Mobileye issued Intel a dividend note for $3.5 billion, and expects to pay that off with proceeds from the sale, according to the filing; there was an initial payment of $336 million, leaving more than $3 billion still owed to Intel. Earlier reporting suggested Intel would seek a $30 billion valuation for Mobileye in the IPO, though the initial filing Friday did not include targeted prices for the shares.

    The filing did include financial information, though: Mobileye reported revenue of $1.39 billion in 2021, well ahead of Nvidia Corp.
    NVDA,
    -0.66%    ,
    which reported fiscal-year revenue of $566 million in auto chip sales in January. Mobileye reported a loss of $70 million last year, compared with a $196 million loss in 2020 and $328 million in 2019. Revenue in the first half of this year hit $854 million, growing 41% in the second quarter from the year before.

    The filing lists a whopping 24 underwriters for the deal including Goldman Sachs, Morgan Stanley, Evercore ISI, Barclays, Citigroup, and B of A Securities.

    Shares of Intel were up 0.5% after hours Friday, following a 2.3% decline in the regular session to close at $25.77.

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  • These 20 stocks in the S&P 500 tumbled between 20% and 30% in September

    These 20 stocks in the S&P 500 tumbled between 20% and 30% in September

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    Stocks declined again on Friday, closing out September with large losses across the board as the rally from the June lows partway through August faded into memory.

    The S&P 500
    SPX,
    -1.51%
    fell 1.5% on Friday. The benchmark index slumped 9.3% for September, leading to a 2022 loss of 24.8%. The Dow Jones Industrial Average
    DJIA,
    -1.71%
    gave up 1.7% on Friday, for a September decline of 8.8%. The Dow has now fallen 20.9% for 2022. The Nasdaq Composite Index
    COMP,
    -1.51%
    pulled back 1.5% on Friday for a September drop of 10.5% and a year-to-date plunge of 32.4%. (All price changes in this article exclude dividends.)

    Below is a list of stocks in the S&P 500 that fell the most during September.

    It was the worst September performance for U.S. stocks since 2008, according to Dow Jones Market Data. William Watts looked back to see what poor performance during September may portend for October.

    Real estate leads the sector bloodbath

    All sectors of the S&P 500 were down during September, including five that fell by double digits:

    S&P 500 sector

    		 Sept. 30 price change

    		 September price change

    		 2022 price change
    Real Estate

    		 1.0%

    		 -13.6%

    		 -30.4%
    Communication Services

    		 -1.7%

    		 -12.2%

    		 -39.4%
    Information Technology

    		 -1.9%

    		 -12.0%

    		 -31.9%
    Utilities

    		 -2.0%

    		 -11.5%

    		 -8.6%
    Industrials

    		 -1.3%

    		 -10.6%

    		 -21.7%
    Energy

    		 -0.9%

    		 -9.7%

    		 30.7%
    Materials

    		 -0.3%

    		 -9.6%

    		 -24.9%
    Consumer Staples

    		 -1.8%

    		 -8.3%

    		 -13.5%
    Consumer Discretionary

    		 -1.8%

    		 -8.1%

    		 -30.3%
    Financials

    		 -1.1%

    		 -7.9%

    		 -22.4%
    Health Care

    		 -1.4%

    		 -2.7%

    		 -14.1%
    S&P 500

    		 -1.5%

    		 -9.3%

    		 -24.8%
    Source: FactSet
    Worst performers in the S&P 500 in September
    Company

    		 Ticker

    		 Sept. 30 price change

    		 September price change

    		 2022 price change

    		 Decline from 52-week intraday high

    		 Date of 52-week intraday high
    FedEx Corp.

    		 FDX,
    -2.52%         		-2.5%

    		 -29.6%

    		 -42.6%

    		 -44.4%

    		 01/05/2022
    V.F. Corp.

    		 VFC,
    -2.73%         		-2.7%

    		 -27.8%

    		 -59.2%

    		 -62.1%

    		 11/16/2021
    Lumen Technologies Inc.

    		 LUMN,
    -1.36%         		-1.4%

    		 -26.9%

    		 -42.0%

    		 -49.8%

    		 11/05/2021
    Ford Motor Co.

    		 F,
    -2.35%         		-2.4%

    		 -26.5%

    		 -46.1%

    		 -56.7%

    		 01/13/2022
    Charter Communications Inc. Class A

    		 CHTR,
    -2.96%         		-3.0%

    		 -26.5%

    		 -53.5%

    		 -59.8%

    		 10/07/2021
    Adobe Inc.

    		 ADBE,
    -1.10%         		-1.1%

    		 -26.3%

    		 -51.5%

    		 -60.7%

    		 11/22/2021
    Carnival Corp.

    		 CCL,
    -23.25%         		-23.3%

    		 -25.7%

    		 -65.1%

    		 -73.5%

    		 10/01/2021
    CarMax Inc.

    		 KMX,
    +1.32%         		1.3%

    		 -25.4%

    		 -49.3%

    		 -57.7%

    		 11/08/2021
    Advanced Micro Devices Inc.

    		 AMD,
    -1.22%         		-1.2%

    		 -25.3%

    		 -56.0%

    		 -61.5%

    		 11/30/2021
    Caesars Entertainment Inc.

    		 CZR,
    -0.49%         		-0.5%

    		 -25.2%

    		 -65.5%

    		 -73.1%

    		 10/01/2021
    Boeing Co.

    		 BA,
    -3.39%         		-3.4%

    		 -24.4%

    		 -39.9%

    		 -48.2%

    		 11/15/2021
    WestRock Co.

    		 WRK,
    -1.56%         		-1.6%

    		 -23.9%

    		 -30.4%

    		 -43.6%

    		 05/05/2022
    International Paper Co.

    		 IP,
    -1.22%         		-1.2%

    		 -23.8%

    		 -32.5%

    		 -44.0%

    		 10/13/2021
    Western Digital Corp.

    		 WDC,
    +1.15%         		1.1%

    		 -23.0%

    		 -50.1%

    		 -53.1%

    		 01/05/2022
    Newell Brands Inc.

    		 NWL,
    -0.57%         		-0.6%

    		 -22.2%

    		 -36.4%

    		 -47.5%

    		 02/16/2022
    Eastman Chemical Co.

    		 EMN,
    +0.34%         		0.3%

    		 -21.9%

    		 -41.2%

    		 -45.1%

    		 01/19/2022
    Nike Inc. Class B

    		 NKE,
    -12.81%         		-12.8%

    		 -21.9%

    		 -50.1%

    		 -53.6%

    		 11/05/2021
    Seagate Technology Holdings PLC

    		 STX,
    -2.11%         		-2.1%

    		 -20.5%

    		 -52.9%

    		 -54.8%

    		 01/05/2022
    PVH Corp.

    		 PVH,
    -3.55%         		-3.6%

    		 -20.4%

    		 -58.0%

    		 -64.3%

    		 11/05/2021
    Dish Network Corp. Class A

    		 DISH,
    -2.19%         		-2.2%

    		 -20.3%

    		 -57.4%

    		 -70.1%

    		 10/04/2021
    Source: FactSet

    Click on the tickers for more about each company, including developments that led to their share-price declines.

    Click here for Tomi Kilgore’s detailed guide to the wealth of information for free on the MarketWatch quote page.

    FedEx Corp.
    FDX,
    -2.52%
    tops the list because of investors’ harsh reaction to the company’s sales and profit warning on Sept. 16. Claudia Assis and Greg Robb explained the implications of FedEx’s warning for the broad economy.

    Shares of Carnival Corp.
    CCL,
    -23.25%
    fell 23% on Friday (for a September decline of 26%) after the cruise giant again reported sales and earnings below what analysts had expected, even though it reported increasing its capacity usage to 92%.

    Nike Inc.
    NKE,
    -12.81%
    was down 13% on Friday for a September decline of 22%, after the company warned that discounting to clear inventory would continue to affect its earnings performance. Here’s how analysts reacted.

    Adobe Inc.
    ADBE,
    -1.10%
    made the list because of investors’ doubt about its dilutive $20 billion deal to acquire Figma.

    The bulk of CarMax’s
    KMX,
    +1.32%
    drop for the month came on Sept. 29, after the used-car dealer missed sales and earnings estimates and indicated that consumers were beginning to resist high prices.

    Don’t miss: Dividend yields on preferred stocks have soared. This is how to pick the best ones for your portfolio.

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  • Micron Posts Weak Results as Memory Demand Softens

    Micron Posts Weak Results as Memory Demand Softens

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    Micron Technology


    shares are under renewed pressure after the memory chip company posted weak results and provided softer-than-expected financial forecasts.

    The anemic quarterly results, reported after the close of trading on Thursday, were no real surprise. Micron had ratcheted down expectations amid weak demand from personal-computer manufacturers and other customers, reflecting softening consumer spending. But even with the market braced for bad numbers, the severity of the expected downturn flagged in management’s earnings guidance still managed to surprise the Street.

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