Veeva (+20%): The U.S.-based provider of cloud solutions for the pharmaceutical industry reported better-than-expected quarterly results. The company also announced a positive outlook for the second quarter, and raised its revenue and earnings forecasts for the rest of the year. It should also be noted that Veeva benefits from favorable recommendations from all analysts, and has just announced a partnership with Belgian biopharmaceutical company UCB on clinical trials.
Chewy (+19%): The online specialist in pet products also did better than expected in the last quarter, both in terms of earnings and revenues. The group, which announced its entry into the Canadian market this year, also raised its annual revenue forecasts above analysts’ consensus. Chewy also won a lawsuit this week against the US Occupational Safety and Health Administration.
Dechra (+15%): Dechra Pharmaceuticals remains in the animal care sector. The British veterinary pharmaceuticals group has received and accepted a £4.46 billion takeover offer from Freya Bidco, a company backed by Swedish private equity group EQT and sovereign wealth fund Abu Dhabi Investment Authority. On completion of the transaction, scheduled for late 2023 or early 2024, the pharma company will delist from the London stock exchange.
Losers
Dr. Martens (-11%): A difficult context for British boot manufacturer Dr. Martens, which reported disappointing annual results, including a 26% drop in pre-tax profits. The group says it is facing several headwinds: a bottleneck at its Los Angeles distribution center that affected deliveries, increased depreciation on systems investments, and a £10.7 million charge for currency translation on its euro-denominated bank debt. However, it has announced a 10% increase in revenues, a dividend payment and a share buyback of at least £50 million.
Lucid (-17%): The American electric vehicle manufacturer announced this week that it had raised around $3 billion from its main shareholder, the Saudi Arabian Public Investment Fund. An announcement that was not well received by the market, as Lucid had recently stated that the company’s liquid assets would be sufficient to finance operations until at least the second quarter of 2024. The group is also hampered by rising interest rates and a gloomy economic context.
Dollar General (-20%): The US small-price specialist reported quarterly results below expectations, with EPS and operating profit down. Weighed down by an uncertain macroeconomic context and a drop in customer traffic, it also revised its annual outlook downwards. At the same time, the group revised its target for the number of store openings this year.
