Nike, Oracle, Boeing, and Micron: Weekly News Digest (20.12-24.12)
Let's see why the shares of Nike, Boeing, and Micron Technology saw growth this week, while Oracle stock dropped.
Nike's net income in Q2 of financial 2022 up 7%
On Monday, 20 December 2021, the American manufacturer of sportswear and shoes, Nike, filed its fiscal 2022 Q2 results. The reported earnings exceeded analysts' expectations.
In the period of September to November 2021, Nike sales in North America increased 12% compared to the same period last year. In Europe, Africa, and the Near East sales grew 6%, while they dropped 20% in China. Direct sales were up 9%, while online sales increased 12%.
Notable report details
- Revenue – $11.36 billion, +1%, forecast – $11.25 billion.
- EPS – $0.83, +6%, forecast – $0.63.
- Net profit – $1.34 billion, +7%.
Nike stock rises 6%
On 21 December 2021, the release of the quarterly report had an immediate impact on Nike's shares (NYSE: NKE), which saw a 6.15% growth to $166.63. The price of Nike stock completed a six-day decline, over the course of which it had dropped more than 7%.
Since January 2021, the shares of the sportswear-maker have grown 17.7%, while they lost 2.6% in total in December. The business of the company is heavily affected by Covid-19 measures (lockdown, quarantine, etc.), which are slowing down its factory production and causing supply chain issues in Asia as a result.
Micron Technology revenue in Q1 of financial 2022 increased 187%
On 20 December 2021, the producer of semiconductors, Micron Technology, published its fiscal 2022 Q1 report. In the period of September to November 2021, the company managed to increase sales of products for data centres by 70%, and for new cars by 25%.
The revenue from selling DRAM microchips makes up for 73% of the total revenue. In the fiscal 2022 Q1 report, these sales reached $5.59 billion, which is 38% more than in the same period last year.
Sales of NAND memory cards amounted to 24% of the total income, which in US dollars is $1.89 billion. In the period of September to November 2021, these sales increased 19%, compared to Q1 of financial 2021.
Notable report details
- Revenue – $7.69 billion, +33%, forecast – $7.68 billion.
- EPS – $2.16, +176.9%, forecast – $2.11.
- Net profit – $2.3 billion, +187.2%.
Micron Technology shares grow over 10%
On 21 December 2021, the fiscal 2022 Q1 report had an immediate impact on the shares of Micron Technology Inc. (NASDAQ: MU), which increased 10.54% to $90.68.
This is the largest growth overnight in 2021. Since January 2021, the shares have grown 20.6%.
Oracle reported the largest deal in its history
At the beginning of the week, the software and server equipment developer, Oracle, reported the acquisition of Cerner – a company that develops software for healthcare institutions.
The sum of the deal is $28.3 billion, which makes this acquisition the largest one in the history of Oracle. The parties plan to complete it next year and hope that the regulators will speed up the necessary permissions.
Oracle and Cerner shares reacted differently
On Monday, following the press release that announced the acquisition, the shares of Oracle Corporation (NYSE: ORCL) reacted negatively – they declined 5.15%, falling to $91.64. One day before the trade was officially confirmed, the shares dropped 6.39% to $96.62.
On the other hand, the share price of Cerner Corp. (NASDAQ: CERN) increased 12.93% to $89.77. It was pushed forward following rumours about the agreement with Oracle that had been actively spread at the end of last week. This is the largest growth overnight in 2021.
UPS contracts with Boeing to purchase 19 cargo airplanes
On Tuesday, 21 December 2021, it became public that one of the largest logistics and delivery companies, United Parcel Service (UPS), had placed an order for 19 Boeing 767 cargo airplanes.
The sum of the deal between Boeing and UPS was not revealed. According to the website of the airplane manufacturer, the parties agreed on the Boeing freighters to be supplied to UPS in the period of 2023-2025.
Boeing and UPS shares reacted with growth
The announcement about UPS buying airplanes from Boeing was not the only good news relating to the aircraft manufacturer. Boeing stock was named the best choice for 2022 by RBC Capital Markets analysts. This news made the share price of Boeing Co (NYSE: BA) rise 5.86% to $199.52.
While the share price of United Parcel Service Inc. (NYSE: UPS) did not show similar growth: it rose just 2.31% to $207.1.
Nike presented its fiscal 2022 Q2 earnings, reporting growth of the revenue and EPS – as a result, the share price surged 6%.
Micron Technology published its fiscal 2022 Q1 earnings, reporting a 187% growth of the net quarterly profit – the shares jumped over 10% as a result.
Boeing shares surged 6% while UPS shares grew 2% following the announcement that they had agreed on the multi-year supply of 19 Boeing cargo airplanes to UPS.
The information that Oracle was buying Cerner had a different impact on the share price of the two companies: Oracle's shares declined 5%, while Cerner's fell almost 13%.