Intel, Cisco, Dlocal, and Hawaiian Electric Industries: Stock Market Weekly Digest (14-18 August)
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Dlocal Ltd., Hawaiian Electric Industries Inc., Intel Corporation, Tower Semiconductor Ltd., and Cisco Systems Inc. were in the spotlight this week. Let’s find out how their stocks reacted to the latest developments.
The stock of Uruguayan tech company Dlocal Ltd. (NASDAQ: DLO), which owns the dLocal payment system, has added 51.58% since the beginning of the week, reaching 19.22 USD per unit.
Dlocal Ltd. announced on Tuesday 15 August, that Pedro Arnt, a former chief financial officer of e-commerce giant MercadoLibre Inc. would be appointed the company’s co-chief executive officer and a member of the Board of Directors.
The next day, Dlocal Ltd. released its Q2 2023 report. Compared to the statistics for the corresponding period of 2022, revenue for April to June increased by 59.19% to 161.1 million USD – the indicator has been rapidly growing for the second consecutive quarter. EPS added 50% in Q2 2023, reaching 0.15 USD.
The stock of utility company Hawaiian Electric Industries Inc. (NYSE: HE) plummeted 62.87% since Monday, down to 12.03 USD. Notably, the last time its shares hit this level was in 1985.
According to the Wall Street Journal, the company is facing lawsuits alleging that its actions exacerbated the wildfires that started on the Hawaiian island of Maui in early August. According to plaintiffs, the responsible officers of Hawaiian Electric Industries Inc. did not shut off the power lines before Hurricane Dora hit the island.
It became known that Hawaiian Electric Industries Inc. is negotiating with companies specialising in restructuring advisory services. The mass media compare this situation with the circumstances in which PG&E Corp (NYSE: PCG) found itself a few years ago. The California Department of Forestry and Fire Protection (CAL FIRE) pinned the responsibility for devastating wildfires in the state in 2017 and 2018 on the company, with PG&E Corp declaring bankruptcy in 2019.
Intel Corporation, one of the world’s largest microprocessor manufacturers, published a press release on its website on Wednesday 16 August stating that the company terminates the acquisition of Israeli chip manufacturer Tower Semiconductor Ltd. The main reason is the inability to obtain the required regulatory approvals for the merger in a timely manner. Under the terms of the agreement, Intel Corporation will pay 353 million USD to Tower Semiconductor Ltd. to terminate the deal.
Recall that the companies announced the deal worth 5.4 billion USD already in February 2022. While the parties initially planned to finalise the merger within 12 months, they postponed the final date several times. Intel Corporation believed that acquiring Tower Semiconductor Ltd. would strengthen its position in the chip manufacturers market, currently dominated by Taiwan Semiconductor Manufacturing Company Ltd.
Intel Corporation (NASDAQ: INTC) stock tumbled 3.57% to 33.53 USD per unit on Wednesday due to the news of the deal's termination. Tower Semiconductor Ltd. (NASDAQ: TSEM) shares lost 10.69%, dropping to 30.17 USD per unit.
Cisco Systems Inc., the US manufacturer of networking equipment, reported its Q4 and the full fiscal year 2023 results on Wednesday. Revenue for May to July increased by 16.03% to 15.2 billion USD, and net profit was up 42.86%, reaching 4 billion USD or 0.97 USD per share. Analysts surveyed by FactSet estimated quarterly revenue at an average of 15.05 billion USD and earnings at 1.06 USD per share.
The annual revenue of Cisco Systems Inc. rose 10.47% to 57 billion USD, and net profit increased by 6.78% to 12.6 billion USD or 3.07 USD per share. The company expects revenue for Q1 fiscal 2024 to reach 14.5-14.7 billion USD with EPS at 1.02-1.04 USD. According to the forecast of Cisco Systems Inc. management for the next financial year, revenue will amount to 57-58.2 billion USD, and EPS will be 4.01-4.08 USD per share.
On the same day, at the close of the trading session, Cisco Systems Inc. (NASDAQ: CSCO) quotes dropped 0.73% to 52.96 USD. However, the stock gained 3.34% on Thursday, rising to 54.73 USD. Since the beginning of the year, the value of the securities showed an increase of 14.88%.
Dlocal Ltd. and Hawaiian Electric Industries Inc. saw significant changes in their stock price this week, with Dlocal's shares surging 52% while Hawaiian Electric Industries' stock plummeted 63% since Monday.
Intel Corporation announced the termination of its acquisition of Tower Semiconductor Ltd. Consequently, the shares of both companies responded with a downward movement.
Cisco Systems Inc. reported an increase in the key quarterly and annual financial indicators, following which its stock experienced moderate growth.