Quick Summary
- Nike shares plummeted approximately 9-10% following disappointing first quarter revenue and a pessimistic full year forecast.
- ON Semiconductor finalized a deal to acquire Synaptics for $5.7 billion in cash, revising an earlier $7 billion stock-based proposal.
- Synaptics shares surged around 14% on the updated acquisition terms.
- Moderna secured a position in the Nasdaq 100 index effective October 9, taking Warner Bros. Discovery’s place.
- Stock futures edged higher Friday as market participants awaited the September employment data.
Equity futures advanced Friday morning as investors positioned themselves ahead of the September jobs report, a key indicator that may influence the Federal Reserve’s upcoming monetary policy moves.
Nike emerged as one of the session’s biggest losers during premarket hours. The athletic apparel giant’s stock tumbled 9% to 10% following underwhelming quarterly performance.
Nike Reports Disappointing Quarter and Slashes Forecast
Nike reported revenue of $11 billion for the period, representing a 4% year-over-year decline. The figure came in below Wall Street’s consensus estimates.
The Greater China region experienced a particularly steep 22% year-over-year decline, generating just $1.2 billion in sales. The Converse subsidiary saw revenue plummet 28%, while Nike Direct channels posted an 8% decrease.
The company’s wholesale division also contracted by 1%. These results signal widespread challenges affecting virtually all segments of Nike’s operations.
For the current fiscal year, Nike now anticipates revenue will fall by a high single digit percentage. Management forecasts adjusted earnings per share ranging from $1.15 to $1.35.
This guidance excludes approximately $0.15 per share in restructuring expenses. The forecast significantly trails analyst expectations of $1.67 per share.
Nike’s strategic initiative dubbed PACE is designed to extract roughly $2.5 billion in cost reductions through 2031. Workforce-related expenses are expected to contribute approximately $1 billion of those savings.
ON Semiconductor Finalizes Synaptics Acquisition
ON Semiconductor stock climbed 4% to 6% following confirmation of its agreement to purchase Synaptics. The revised transaction is structured as an all-cash deal worth $5.7 billion.
The offer equates to $123 per Synaptics share. This represents a departure from the June announcement of an all-stock transaction that carried an approximate $7 billion valuation.
The revised structure came after Synaptics received a competing acquisition proposal. ON Semiconductor indicated the cash-based transaction will be immediately accretive to adjusted earnings per share.
Financing for the acquisition will come from existing cash reserves combined with debt arranged through Morgan Stanley. The transaction remains on track for completion by mid-2027.
Synaptics’ board unanimously endorsed the modified terms. Synaptics stock jumped approximately 14% in premarket trading following the announcement.
In related market activity, ChronoScale Holdings advanced roughly 6%. The firm disclosed new and expanded partnerships with AI infrastructure clients, projecting an annualized revenue run rate of $1 billion by Q3 2027.
ChronoScale also finalized the divestiture of its Ekso Bionics division. This transaction allows the company to concentrate resources on its core AI infrastructure operations.
Moderna Earns Nasdaq 100 Index Inclusion
Moderna stock increased nearly 2% after Nasdaq confirmed the biotech firm will enter the Nasdaq 100 index. The addition becomes effective prior to market open on October 9.
Moderna will take the slot currently held by Warner Bros. Discovery. Warner is anticipated to finalize its combination with Paramount Skydance within days.
Among other notable movers, Venture Global shares registered modest gains. ConocoPhillips committed to purchasing 1 million metric tons of liquified natural gas annually from the company for 20 years beginning in 2030.
The post ON Semiconductor’s $5.7 Billion Synaptics Deal Lifts Shares While Nike Struggles with 22% China Sales Drop appeared first on Blockonomi.
