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Novo Nordisk cuts outlook again amid obesity drug slowdown and Pfizer bidding war

The Q3 earnings report comes at a tumultuous time for the company.

Novo Nordisk reported quarterly earnings results Wednesday that missed Wall Street estimates, as the company fights a bidding war that could determine its future in the obesity drug market.

The Danish pharmaceutical giant reported quarterly adjusted earnings per share of $0.70, compared to the $0.76 analysts had estimated, per Bloomberg-compiled estimates. It also reported $11.7 billion in sales, short of the $11.9 billion the Street had penciled in. Novo trimmed its full-year growth forecast for the fourth time this year, too, and now projects sales growth of 8% to 11% and operating profit growth of 4% to 7%, down from its previous 8% to 14% and 4% to 10% forecasts, respectively.

The earnings report comes at a tumultuous time for the company. Its bidding against Pfizer for obesity biotech company Metsera, which is working on next-generation GLP-1 drugs. This comes after its top investor shook up the board last month, accusing the previous directors of not being aggressive enough in the weight-loss drug race.

Novo was the first to bring GLP-1s to market but has seen its sales growth fade in recent quarters as it faces increased competition from Eli Lillyand telehealth companies that sell copies of its drugs, such as Hims & Hers.

Shares slumped as much as ~4% overnight, but have since rebounded to trade about 1.2% higher in the premarket at the time of writing. The stock is still down around 44% year to date.

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SpaceX gets a wave of bullish ratings from Wall Street analysts

SpaceX received more than a dozen positive analyst calls on Tuesday — including from major Wall Street banks — as they initiate coverage on Elon Musk’s space and AI company.

SpaceX went public on June 12 at a $2.2 trillion valuation, the largest debut in history. While the company hasn’t yet posted a profit, it seems to have convinced Wall Street that it will get there and grow its valuation on the way.

Of the at least 17 analysts that gave a rating on Tuesday, all but one gave it a “buy” or “outperform” rating. MoffettNathanson was "neutral."

The ratings come as SpaceX joined the Nasdaq 100 index, a benchmark tech-heavy basket of companies that underpins millions of portfolios. The inclusion adds built-in demand for the stock from index funds and ETFs.

Still, SpaceX fell more than 5% on Tuesday amid a broader sell-off, and is currently effectively flat from its opening price of $150 a share.

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Nike sinks to lowest level since 2014 after warning of “challenged” sales environment in Q4 report

Did Nike do it?

Investors had a mixed reaction after the global sports apparel company reported its fourth quarter earnings on Tuesday after the bell. Shares initially rose 5% as Nike beat out Wall Street expectations amid a hefty tariff refund bonus. However, the stock then sank to its lowest level since August 2014 in postmarket trading.

Here are the Q4 numbers:

  • Revenue of $11.0 billion (estimate: $10.8 billion).

  • Adjusted earnings per share of $0.20 (estimate: $0.12).

Ahead of this report, Nike warned that results would be flattered by a one-time tariff refund (now estimated at roughly $0.52 per share for the bottom line). That gave the company an extra cushion in snapping its streak of seven quarters of year-over-year profit declines.

Over the past year, the company had been punished by tariffs on imported goods, stagnant consumer spending, and increasing competition from other footwear brands like New Balance, Adidas, and Hoka.

Outgoing CFO Matthew Friend deemed it an “increasingly challenging operating environment, where sell-through remains challenged.”

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