In what is perhaps the biggest acquisition deal of them all, Global Payments yesterday announced that it would acquire Worldpay in a $24.25 billion deal. The contract with Fidelity National Information Services and a private equity group bodes an interesting new chapter for Global Payments. This move is indicative of the company’s continued growth and expansion into the payments space. The company is shedding its Issuer Solutions business, a strategic decision focused on better aligning the company’s diverse offerings.
For the homebuilders, D.R. Horton should get credit for $2.58 in EPS last quarter. This figure was not enough for analysts, who had expected earnings of $2.63 per share. The company’s results may reflect the ongoing challenges faced by the housing market as it adjusts to changes in interest rates and economic conditions.
At the same time, Eli Lilly has been dominating the headlines with promising news about its daily obesity pill. The investor-backed pharmaceutical company trumpeted positive findings from late-stage control trials Tuesday, pushing its stock value up an astounding 16% on the news. This new development comes at a time of intensifying attention toward the treatment of obesity as a serious health concern continues to rise.
UnitedHealth reported 3Q adjusted earnings of $7.20 per share, with revenue numbers hitting $109.58 billion. These results missed Wall Street’s expectations of $7.29/share and $111.60 billion in revenue. In turn, the market is spooked by the prospect of the company’s underperformance in years to come.
On an unrelated note, rental car behemoth Hertz just experienced a remarkable comeback. Its stock jumped 50% on the news, making a new 52-week high! The company came under the spotlight after a huge investment from Bill Ackman’s Pershing Square. The hedge fund has increased its stake in Hertz to 19.8%. This action creates an opportunity for it to become the largest shareholder, having already laid the groundwork with a large 4.1% stake by year-end 2024.
In tech earnings, Alphabet <GOOGL.O> tumbled 1.2%. This decrease followed a ruling from a federal judge that Google had unlawfully monopolized online advertising technology. This ruling may be a long-term boon for the tech giant as it continues to battle a tide of regulatory scrutiny.