iRhythm Technologies (IRTC) stock jumped 5.8% to close at 124.97. iRhythm won a pair of lucrative reimbursement codes from Medicare, leading IRTC stock to surge. Specifically, the Chicago-area Medicare Administrative Contractor increased how much it will pay for two of iRhythm's wearable heart-monitoring devices. Adjusted revenues improved 7.6% year over year to $44.1 billion.
Cigna Corporation (CI) +14.82 gained on the back of strong contributions from its businesses. Growth in the medical customer base contributed to the upside. However, the upside was partly offset by elevated benefits and expenses. The total medical customer base of Cigna came in at 17.8 million, which reflected an increase of 4.1% sequentially or 6.6% year over year. Both the increases were led by growth within the U.S. Commercial and International Health markets, partly offset by a decline in U.S. Government business (including the Medicaid business divestiture).
Endo International (ENDP -29.70%) stock was cratering, with shares falling 31.6% The sharp sell-off came after the drugmaker announced its first-quarter results. The company reported Q1 net revenue of $652.3 million, down 9% year over year. Endo posted adjusted earnings in the first quarter of $155.9 million, or $0.66 per share. Endo International plc is an American Irish-domiciled generics and specialty branded pharmaceutical company that generated over 93% of its 2017 sales from the U.S. healthcare system.
Bloom Energy Corp. (BE, -20.24%) stock dropped more than 8% in the extended session after the clean-energy company reported a wider-than-expected first-quarter loss and revenue. The Fayetteville Public Works Commission (PWC) and Bloom Energy (NYSE: BE), announced plans to install and operate 1.5 megawatts of solid oxide fuel cells. Creating renewable energy from multiple biogas streams in the region, the new project will reduce emissions and advance the Fayetteville community’s efforts to meet North Carolina’s clean energy standards.
WHAT ELSE HAPPENED?
New York (CNN Business)Tripped-up supply chains and a coronavirus surge in China are causing headaches for top athletic brands. Under Armour (UA) tumbled 25% Friday after the company posted a $60 million loss during its most recent quarter due to supply chain delays and recent Covid-19 lockdowns in China.
Chinese authorities imposed a lockdown in Shanghai, China's financial hub, in late March following a surge in coronavirus cases. Although the government started to lift some restrictions last month, more than 8 million residents are still banned from leaving their residential compounds.
Under Armour warned that pressures in Asia will continue to hurt its business this year. Meanwhile, Adidas (ADDDF) on Friday also said its profit fell last quarter. The sportswear giant reported a net profit of $327 million last quarter, down 38% from the same stretch a year ago. The decline was caused by a challenging market environment in China, where sales fell 35%, as well as supply chain disruptions. Revenues in Greater China are now expected to decline significantly in 2022 The company's stock fell 5%.
Under Armour's and Adidas' sluggish results and forecast dragged down other big sportswear brands, including Nike (NKE) and Lululemon (LULU). Nike was off 3% and Lululemon dropped 7% Friday. China is a key market for these companies and their supply chain networks also rely heavily on the Asia-Pacific region.
Although these brands have been raising prices to combat higher costs, they say consumers are still eager to buy their gear.
Shares in Cisco Systems (CSCO) posted a good run in 2021 amid the market's rotation to "value" stocks tied to the U.S. economy reopening. The outlook for CSCO stock this year depends on spending trends for cloud computing infrastructure as well as corporate and telecom networks. Cisco stock jumped 41% in 2021 amid volatility in the tech-heavy Nasdaq. Cisco's January-quarter earnings were higher considering component shortages and supply-chain issues. Product orders increased 33% year-over-year, marking the third straight quarter of 30%-plus order growth. Demand in the enterprise market has been a bright spot. Cisco continues to hike prices amid supply chain issues.
Shopify (SHOP) earnings fell 14% while revenue rose 41% to $1.38 billion, both beating Q4 views. But management said capital spending and marketing investments would climb as the coronavirus pandemic fades and e-commerce growth normalizes. Shopify said it plans to spend $1 billion annually on a U.S. distribution network to store and ship products for its merchant customers. For full-year 2022, Shopify expects "Year-over-year revenue growth to be lower in the first quarter of 2022 and highest in the fourth quarter of 2022." SHOP stock plunged to its lowest level since May 2020.
WHAT ELSE HAPPENED?
Tesla (TSLA) sold 59,845 made-in-China Model 3 sedans and Model Y SUVs last month. Most of those, 40,499, were exported mainly to Europe. Only 19,346 were sold locally, vs. 70,602 in December. Meanwhile, the National Highway Traffic Safety Administration confirmed it is investigating claims that a Tesla Autopilot system glitch causes phantom braking. And Consumer Reports crowned Ford's Mustang Mach-E its top EV of 2022, dethroning Tesla's Model 3. Tesla stock fell about 1.5% for the week.