Business and Finance News - 6.21.24

Accenture Projects 2024 Revenue Growth of 1.5%-2.5%, Shares Surge 10% on AI Boost and Strong Bookings

• Accenture (ACN) forecasts annual revenue growth of 1.5% to 2.5% for 2024.

• Shares of Accenture rose over 10% following the revenue projection.

• The company's new bookings rose to $21.06 billion in the third quarter.

• $900 million in new bookings were for Accenture's generative AI services.

• Revenue in the third quarter was $16.47 billion, missing estimates of $16.53 billion.

• Adjusted profit per share was $3.13, below estimates of $3.15.

• Accenture's CEO highlighted AI's role in boosting productivity and cost efficiency for clients.

*Accenture is a global professional services company that provides a wide range of services and solutions in strategy, consulting, digital, technology, and operations.

Darden Restaurants Beats Profit Expectations, Misses Revenue; Plans 45-50 New Openings and Price Hikes Amid Mixed Sales Performance

• Darden Restaurants (DRI) beat profit expectations but missed revenue estimates.

• Fourth-quarter income was $308.1 million, down from $315.1 million last year.

• Adjusted earnings per share were $2.65, above analysts' expectations of $2.61.

• Overall sales rose 6.8% to $2.96 billion, slightly below the expected $2.97 billion.

• LongHorn Steakhouse sales increased by 4%, while Olive Garden sales fell by 1.5%.

• Darden plans to open 45 to 50 new restaurants in fiscal year 2025.

• The company expects to raise prices by 2% to 3% to align with inflation.

*Darden Restaurants, Inc. is an American multi-brand restaurant operator that owns and operates several popular restaurant chains, most notably Olive Garden and Yard House.

Dell and Super Micro Shares Surge as Suppliers for Elon Musk's $500M xAI Supercomputer Project

• Shares of Dell (DELL) and Super Micro (SMCI) jumped after being named suppliers for Elon Musk's xAI supercomputer.

• Dell will assemble half of the racks for xAI's supercomputer, according to Musk.

• Super Micro shares surged more than 8%, while Dell shares increased by 1%.

• xAI is developing a $500 million "Dojo" supercomputer in Buffalo, New York.

• A super dense, water-cooled supercomputer cluster will be built at the Austin, Texas factory.

• The technology aims to aid Tesla in developing computer vision and language models for robots and autonomous vehicles.

• xAI, founded by Musk, is a competitor to Microsoft-backed OpenAI and Google's AI efforts.

*Dell Technologies is a company that provides a wide range of technology products and services; like computers, servers, storage solutions, and networking.

*Super Micro Computer, Inc., commonly known as Supermicro, is a global leader in high-performance, high-efficiency server technology and innovation.

*xAI, founded by Elon Musk, is an artificial intelligence startup that focuses on developing advanced AI technologies and applications.

Hertz Plans to Raise $750M Through Notes Offering to Improve Liquidity; New CFO Appointed Amid EV Sales and Depreciation Costs

• Hertz (HTZ) plans to raise $750 million through a two-part secured notes offering.

• Proceeds will pay down part of its $2 billion revolving credit facility and improve liquidity.

• Scott Haralson, former Spirit Airlines CFO, was named Hertz's new finance chief in June.

• Hertz plans to sell 10,000 more EVs, totaling 30,000 planned sales for the year.

• Elevated vehicle depreciation costs, including a $195 million hit from EVs, are expected in 2024.

• Hertz forecasts an adjusted corporate loss before interest, taxes, depreciation, and amortization of $435-495 million for Q2.

• Hertz shares have lost over 70% of their value this year, down 3% in morning trade.

*Hertz Corporation is an American car rental company that operates both domestically and internationally, providing a range of vehicle rental services.

Sony Music Acquires Queen Catalog for £1 Billion, Retaining Live Performance Revenue; Disney Holds U.S. Rights

• Sony Music (SONY) is acquiring the Queen music catalog for £1 billion ($1.27 billion).

• The deal excludes revenue from live performances, retained by Brian May and Roger Taylor.

• Another bidder offered $900 million but fell short.

• Queen’s catalog includes hits like “Bohemian Rhapsody” and “We Will Rock You.”

• Disney holds Queen’s recorded-music rights for the U.S. and Canada.

• The catalog’s distribution deal will transfer to Sony globally, excluding U.S. and Canada, by 2026-2027.

• Queen, formed in 1970, saw global success with each member penning a No. 1 single.

*Sony Corporation is a Japanese multinational conglomerate that operates in various sectors, including electronics, entertainment, gaming, and financial services.

Here’s how the markets closed yesterday:

• Dow Jones: 39,134.76 +299.90 (+0.77%)

• S&P 500: 5,473.17 -13.86 (-0.25%)

• Nasdaq: 17,721.59 -140.65 (-0.79%)

• Bitcoin (BTC): $64,699.75 (8:45PM PST on 6/20/24)

• Ethereum (ETH): $3,504.68 (8:45PM PST on 6/20/24)

Here’s how the THE SUPER SIX STOCKS did yesterday:

• Microsoft (3.313T): 445.70 -0.64 (-0.14%)

• Nvidia (3.222T): 130.78 -4.80 (-3.54%)

• Apple (3.215T): 209.68 -4.61 (-2.15%)

• Alphabet (2.196T): 177.71 +1.26 (+0.71%)

• Amazon (1.937T): 186.10 +3.29 (+1.80%)

• Meta Platforms (1.273T): 501.70 +2.21 (+0.44%)