MORNING NEWS CALL

Powered by Re uters

U.S. Edition 'T!Jul'ldoi,. Fal>Nary I, 2024

TOP NEWS
• Disney answers activists with gaming investment, ESPN streaming plans
Walt Disney CEO Bob Iger hit back at activist investors on Wednesday with a slew of announcements, including a
splashy investment in "Fortnite" maker Epic Games and plans to launch an ESPN streaming service in 2025.

• ConocoPhillips beats fourth-quarter profit estimates on higher production

U.S. oil and gas producer ConocoPhillips beat Wall Street estimates for fourth-quarter profit, helped by higher
production from newly acquired assets.

• Spirit Airlines expects positive operating cash flow from second quarter
Spirit Airlines said it expects to operate with a positive cash flow from the second quarter after reporting a narrower
-than-expected loss, on strong domestic demand for travel during the holiday season.

• Under Armour raises annual profit forecast on easing input costs

Under Armour lifted its annual profit and margin forecasts, helped by easing input and freight costs even as
demand for its products slowed, sending the shares of the apparel maker up before the bell.

• Coach parent Tapestry raises annual profit forecast on steady China demand
Coach handbags maker Tapestry raised its full-year profit forecast, betting on a demand recovery in China for its
handbags and leather goods.

BEFORE THE BELL

U.S. stock index futures see-sawed in a tight range following a strong finish on Wall Street a day earlier ahead of
big-ticket earnings reports, while investors also awaited data that could offer clues on the economy's health.
European shares edged higher, propped up by strong performances from consumer staples stocks including
Unilever, while losses in Maersk and AstraZeneca following results kept gains in check. In Asia, Japan's Nikkei
closed at the highest level in 34 years, surging more than 2% after a high-ranking Bank of Japan official signaled
that any policy tightening would be gradual, while China shares closed up after Beijing appointed a veteran
regulator as the new securities watchdog head. The dollar consolidated, while gold edged lower. Oil prices rose
as investors considered the impact of Israel's rejection of a ceasefire offer from Hamas.

STOCKS TO WATCH

Results
• Allstate Corp: The insurer posted fourth-quarter profit above Wall Street estimates, fueled by a potent blend of
rising premiums and a significant drop in catastrophe losses. The company's consolidated premiums written stood

1
MORNING NEWS CALL - U.S. EDITION Februa 8, 2024

at $13.84 billion for the quarter, up 9.3% from the year-ago quarter. The insurer's catastrophe losses plummeted
sharply by 91.3% in the quarter, reaching $68 million. The insurer's adjusted profit for the three months ended
Dec.31 was $5.82 per share, compared to analysts' estimate of $3.99 per share. Allstate's investment income rose
8.4% to $604 million in the quarter, reflecting higher yields in the company's fixed-income portfolio. The company
posted an underlying combined ratio of 86.9%, compared to 99.2% a year earlier.

• Apollo Global Management Inc: The company said its fourth-quarter adjusted net income jumped nearly 31%,
driven by growth in management fees and earnings from its retirement services business. Apollo's adjusted net
income rose to $1.2 billion, up from $903 million a year earlier. That resulted in adjusted net income per share of
$1.91, higher than the average estimate of $1.72 from Wall Street analysts. Fee-related earnings rose 16% to a
quarterly record of $457 million, buoyed by rising income from management fees despite a drop in revenue from
Apollo's capital markets business. Net profit from asset sales rose nearly 89% to $51 million as divestments across
Apollo's private equity portfolio picked up even though it remained "prudently delayed" given a "challenging
environment" to cash out investments, the firm said. Apollo's net income under generally accepted accounting
principles (GAAP) soared to $2.9 billion, up from $640 million a year earlier, driven by investment-related gains
and increased premium inflows from Athene. It declared a dividend of 43 cents per share.

• ArcelorMittal SA: The world's second-largest steelmaker, said it sees early signs the industry backdrop is
improving, forecasting 3-4% growth in global steel demand outside China this year. The company also reported
fourth-quarter core profit (EBITDA) of $1.27 billion, slightly ahead of an average forecast of $1.20 billion returned in
a company-compiled poll, and little changed from $1.26 billion a year before. "We are seeing a nice recovery of
prices in Europe," Chief Financial Officer Genuino Christino said in a call with journalists. The steelmaker posted a
full-year net profit of $4.87 billion, including a $2.4 billion charge related to the disposal of the Kazakhstan
operations and a $1.4 billion impairment of Acciaierie d'Italia in Italy.

• Arm Holdings Plc: The company surged on Wednesday after the British tech company forecast quarterly sales
and profit above Wall Street expectations as customers aim to design new chips for artificial intelligence work,
generating higher royalties. The surge in Arm's stock lifted its market capitalization by about $26 billion. Now
trading at $102.11, Arm has doubled from the $51 price set in its September initial public offering. The midpoints of
Arm's fourth-quarter sales and adjusted profit forecasts range of $875 million and 30 cents per share, respectively,
beat estimates of $780.3 million and 21 cents per share. It raised its guidance by roughly $100 million because
markets such as automotive and AI are going to be strong in the fiscal fourth quarter, finance chief Jason Child told
Reuters. For the full fiscal year, Arm expects $3.18 billion in revenue and adjusted earnings of $1.22 per share,
both above analysts' estimates. For the fiscal third quarter, Arm reported sales of $824 million and adjusted
earnings of 29 cents per share, topping Wall Street estimates of $761.6 million and 25 cents per share.

• AstraZeneca Plc: The company expects to boost revenue and profit this year on the back of resilient demand for
its cancer and rare disease drugs, the company said after reporting slightly lower than expected fourth-quarter
profit. AstraZeneca's RSV shot, co-developed with Sanofi, is also a break from its oncology expertise. Tagrisso
sales grew 9% last year while revenue from Imfinzi, another cancer drug, jumped 55% and Calquence sales rose
by 23%. The company said it expects total revenue and core earnings per share (EPS) to increase by percentages
in the low teens this year. AstraZeneca is also viewed as a bellwether for China's pharmaceuticals sector, given its
strong presence in the region. Revenue in China ticked up 16% in the final quarter of 2023 to $1.38 billion.

• British American Tobacco Plc: The company is "actively working" to sell some of its shareholding in India's
ITC, it said, sending its shares up as investors cheered a move towards resuming share buybacks. The maker of
Dunhill and Lucky Strike cigarettes disappointed investors when it opted against a fresh buyback programme last
year to focus on reducing debt and investing in new products. As a result, it has come under pressure to reduce its
roughly 29% stake in ITC, an Indian consumer goods giant that makes a large portion of its revenue from
cigarettes but also operates hotels, a paper business and more. Such a stake sale would allow it to pay down debt
and move faster towards the leverage range at which it could resume buybacks. BAT's results statement said it
was "actively working" to find a way to do so. BAT also reported a 5.2% rise in adjusted diluted earnings per share,
slightly beating analyst expectations.

• ConocoPhillips: The U.S. oil and gas producer beat Wall Street estimates for fourth-quarter profit, helped by
higher production from newly acquired assets. ConocoPhillips had acquired an additional 50% stake from
TotalEnergies in the Surmont facility in Canada in 2023 that boosted its production. The company reported fourth-
quarter production of 1.9 million barrels of oil equivalent per day (boepd), compared with 1.76 million boepd in the
year-ago quarter. ConocoPhillips forecast 2024 total capital expenditure in the range of $11.0 billion to $11.5
billion. The company posted adjusted earnings of $2.40 per share for the quarter ended Dec. 31, compared with
analysts' average estimate of $2.09.

2
MORNING NEWS CALL - U.S. EDITION Februa 8, 2024

• Coty Inc: The company beat Wall Street estimates for second-quarter revenue on Wednesday, powered by
higher pricing and strong demand for its high-end Burberry and Gucci fragrances and fresh launches of cosmetics
in the U.S. during the holiday season. In the Americas region, Coty's net revenue rose 10% to $687.9 million,
accounting for 40% of its total sales. Coty's prestige revenue in Mainland China grew in double-digit percentage.
Its total net revenue for the second quarter rose 13% to $1.73 billion, beating estimates of $1.68 billion. But net
income fell 24% to $177.6 million in the quarter, mainly due to higher costs of production. Coty posted adjusted
earnings per share of 25 cents, including a non-operating EPS benefit of 6 cents from mark-to-market on the
equity swap due to stock price increase.

• Duke Energy Corp: The utility firm missed fourth-quarter profit estimates on higher interest expenses and raised
its five-year capex by $8 billion to support its transition to renewable energy. The U.S. Federal Reserve's interest-
rate hikes to tame inflation have made borrowing more expensive for businesses, impacting utility firms like Duke.
The company's quarterly interest expense for its Electric Utilities and Infrastructure segment was at $486 million,
compared with $421 million a year ago. It reported an adjusted profit of $1.51 per share for the quarter ended Dec.
31, compared with analysts' average estimate of $1.54 per share. Duke raised its five-year capital expenditure to
$73 billion from its earlier plan of $65 billion. The company reported revenue of $7.21 billion for the quarter ended
Dec. 31, a 1.9% fall from the previous year, missing analysts' average estimate of $7.49 billion.

• Equifax Inc: The credit ratings firm Equifax forecast 2024 revenue below Wall Street estimates on Wednesday,
as the mortgage market continues to remain challenging in a higher-for-longer interest rate environment. The
company's 2024 revenue forecast between $5.67 billion and $5.77 billion came in below the mid-point Wall Street
expectations of $5.74 billion. The guidance for the year reflects an expectation of an over 16% decline in 2024
U.S. mortgage credit inquiries, with the first half of the year expected to be weaker versus the second half, the
company said. Equifax also expects current-quarter revenue between $1.38 billion and $1.4 billion, below analysts'
expectations of $1.41 billion. In the fourth quarter, the company's revenue rose 11% to $1.33 billion, beating
estimates of $1.31 billion. Adjusted profit came in at $1.81 per share in the three months ended Dec. 31, compared
with Wall Street expectations of $1.75 per share.

• Everest Group Ltd: The company's operating profit more than doubled in the fourth quarter on Wednesday, as
the insurer benefited from stronger underwriting and better returns on its investments. Everest said its gross
written premium increased 18.3% on a constant currency basis to $4.3 billion in the quarter. Everest's net
investment income improved to $411 million, compared with $210 million a year earlier, driven by strong fixed
income and alternative investment returns. Gross written premiums in its reinsurance segment grew 21.9% on a
constant dollar basis. The gains come in line with the broader upbeat sentiment in the market as higher insurance
sales also drum up demand for reinsurance. Everest's operating income came in at $1.09 billion, or $25.18 per
share, for the three months ended Dec. 31, compared with $478 million, or $12.21 per share, a year ago.

• Fleetcor Technologies Inc: The business payments firm posted a 9% jump in its fourth-quarter adjusted profit
on Wednesday, helped by higher spending from its customers. Firming bets of a soft landing have eased fears of a
recession and encouraged businesses to spend on employee travel and other corporate activities, boosting
earnings of companies such as Fleetcor. On an adjusted basis, the company's profit was $326.1 million, or $4.44
per share, for the three months ended Dec. 31, compared with $300.2 million, or $4.04, a year earlier. Revenue
rose 6% to $937.3 million. The company also forecast adjusted net income per diluted share between $19.20 and
$19.60 for 2024. Analysts were expecting $19.34 per diluted share.

• Globe Life Inc: The company reported a rise in fourth-quarter profit on Wednesday as the insurer benefited from
stronger underwriting and better returns on investments. Insurance companies witness strong demand for their
goods, independent of broader economic circumstances because their policies are often guaranteed by employers
or mandated by the government. Globe Life's insurance underwriting income per share rose to $3.43 in the quarter
from $3.18 a year earlier. The company said quarterly net investment income rose 6% to $271.61 million
compared to the year-ago quarter. Net operating income was at $2.80 per diluted share in the three months ending
Dec. 31, compared with $2.55 last year.

• Harley-Davidson Inc: The company reported a 38% fall in fourth-quarter profit, hurt by slowing demand for
motorcycles in North America as consumers cut back spending on pricier leisure purchases amid sticky inflation.
The 120-year-old motorcycle maker has focused on selling fewer bikes at higher prices to boost margins, but it
wasn't enough to offset a decline in bike shipments. Harley-Davidson's sales from motorcycles and related
products fell about 14% to $792 million in the quarter. The company's net profit fell to $26 million, or 18 cents per
share, from $42 million, or 28 cents per share, a year earlier.

• Inter&Co Inc: The Brazilian digital bank reported on Wednesday a better-than-expected five-fold increase in
fourth-quarter net profit as it cut costs and focused its lending portfolio on more profitable categories. The Nasdaq-

3
MORNING NEWS CALL - U.S. EDITION Februa 8, 2024

listed bank posted a net profit of 160 million reais, up from 29 million reais a year earlier. Analysts polled by LSEG
expected fourth-quarter profit from 2023 to land at 139 million reais. Chief Financial Officer Santiago Stel told
Reuters factors such as a better efficiency ratio - a measure of the bank's expenses relative to its revenues - which
improved 1 percentage point from the previous quarter, helped the firm to boost profits. Inter&Co's return on equity
stood at 8.5% in the fourth quarter, higher than 5.7% in the third quarter and 1.6% in the fourth quarter of 2022.

• Kenvue Inc: The company forecast full-year profit below analysts' expectations after missing quarterly sales
estimates, as the Tylenol maker faces sluggish demand in China and slowing growth for skin and beauty products
in the U.S. The company missed Street estimates for fourth-quarter sales in both its self-care, as well as skin
health and beauty segments. Kenvue said it aimed to grow sales of its brands at 1-3%. The consumer health
company reported fourth-quarter topline of $3.67 billion, missing estimate of $3.78 billion. Quarterly revenue from
self-care, its largest segment that houses Benadryl, Tylenol and Pepcid, came in at $1.54 billion. Analysts on
average expected the segment to record $1.63 billion in sales. The company forecast annual adjusted profit of
$1.10 to $1.20 per share, compared with analysts estimates of $1.26. However, fourth-quarter profit of 31 cents
per share topped estimates of 28 cents on lower-than-expected taxes.

• Mattel Inc: The company forecast 2024 adjusted profit above market expectations and announced a $1 billion
share buyback program as the Barbie parent benefits from its cost-saving measures. Inventory trimming, as well
as lower input costs, helped drive another quarter of gross margin gains for the company, even as softer toy
demand in the key holiday quarter led to a sales and profit miss, and a tepid 2024 sales forecast. Gross margins in
the quarter ended Dec. 31, 2023 were up 580 basis points, improving on a 280 basis points rise in the third-
quarter. Mattel forecast 2024 net sales in-line with $5.44 billion reported in 2023 — shy of market expectations of a
rise of 1.4%. It announced a new cost savings program focused on streamlining its supply chain, and forecast full-
year adjusted earnings per share between $1.35 and $1.45, largely above the estimate of $1.37.

• McKesson Corp: The U.S.-based drug distributor raised its annual profit forecast on Wednesday, banking on
strong demand for specialty medicines. An increase in volumes for costly specialty medicines and other products
in the United States have helped McKesson counter the impact of lower COVID vaccine sales in the third quarter.
McKesson expects its 2024 adjusted per-share profit to be between $27.25 and $27.65, versus its prior range of
$26.80 to $27.40. Company's total revenue rose about 14.8% to $80.9 billion, ahead of analysts' estimate of
$77.86 billion, partly helped by the demand for GLP-1 medications. On an adjusted basis, McKesson posted per-
share profit of $7.74 for the quarter ended Dec. 31, versus analysts' estimate of $7.05.

• Molina Healthcare Inc: The company beat Wall Street estimates for fourth-quarter profit on Wednesday,
benefiting from higher premiums and lower-than-expected medical costs. Molina's quarterly medical loss ratio, or
the percentage of premiums paid out for medical services, was 89.1%, compared with analysts' estimate of 90%.
The company's revenue from premiums rose 5.6% to $8.36 billion, and its total revenue of $9.05 billion beat
analysts' expectations of $8.37 billion. Molina sees its 2024 medical loss ratio to be 88.2%, versus analysts'
estimate of 88.4%. The company expects 2024 adjusted profit to be at least $23.5 per share, versus estimates of
$23.57 apiece. Memberships for Medicaid plans fell 4.5% to 4.5 million from a year-ago period, while that for
Medicare grew 10.3% to 172,000, the company said. Molina reported adjusted profit of $4.38 per share for the
quarter ended Dec. 31, above analysts' estimate of $4.35.

• Monolithic Power Systems Inc: The company forecast current-quarter revenue above estimates as demand for
its power control modules and other hardware used in artificial intelligence applications grew. Analysts expect the
anticipated AI boom will help the company offset poor demand in its other segments- Automotive and Industrials.
The company expects its first-quarter revenue between $437 million and $457 million, compared with estimates of
$430.8 million. Revenue for the fourth quarter was $454 million, above the analysts' average estimate of $452.1
million. The company reported a profit of $2.88 per share in the last three months of the year, while analysts
expected a net income of $2.85 per share.

• News Corp: The media conglomerate beat Wall Street estimates for second-quarter revenue on Wednesday,
driven by growth in business information unit Dow Jones, digital real estate services and a rebound in its book
publishing unit. It benefited as customers look for one-stop-shop products to consume market analysis and
professional insights services. The company saw a rebound in its book publishing segment, comprising
HarperCollins, as revenue grew 4% to $550 million in the second quarter. News Corp's revenue in the quarter
ended Dec. 31 rose 3% to $2.59 billion, compared with estimates of $2.55 billion, according to Visible Alpha data.
Excluding items, the company earned 26 cents per share, compared with estimates of 21 cents. Revenue at Dow
Jones grew 4% to $584 million, boosted by professional information business. News Corp posted a 5.6% decline
in its advertising revenue as marketers kept a tight leash on ad budgets in an uncertain economy.

4
MORNING NEWS CALL - U.S. EDITION Februa 8, 2024

• O'Reilly Automotive Inc: The auto parts distributor forecast full-year profit below estimates on Wednesday, as
expenses rise. With electric and autonomous vehicles gaining popularity, the company has been heavily investing
in technology as well as store infrastructure. O'Reilly said it planned to open 190 to 200 stores in the year, and
forecast 2024 capital expenditure between $900 million and $1 billion, compared with estimates of $724.3 million.
The company expects full-year profit of $41.05 to $41.55 per share, below analysts' expectation of $42.64 per
share. It expects total revenue of $16.8 billion to $17.1 billion for 2024, compared with estimates of $16.80 billion.
For the quarter ended Dec. 31, the company reported sales of $3.83 billion, marginally below estimates of $3.86
billion. O'Reilly's quarterly profit of $9.33 per share, however, beat analysts' estimates of $9.17 per share.

• Paycom Software Inc: The company forecast first-quarter revenue below market estimates on Wednesday as
clients pull back spending on payroll and human capital management software products due to economic
uncertainty. The payroll services provider also promoted former Chief Operating Officer Chris Thomas to jointly
lead the company with Chad Richison as co-CEO. The company projected revenue in the range of $494 million to
$497 million for the quarter ending March 31, compared with the estimates of $500.5 million. For the quarter ended
Dec. 31, Paycom reported revenue of $434.6 million, exceeding expectations of $422.5 million. Adjusted profit of
$1.93 per share also came in above estimates of $1.78.

• PayPal Holdings Inc: The company’s forecast of flat growth in adjusted profit for the current year overshadowed
its market-beating earnings report, sending shares of the payments giant down in extended trading. On a post-
earnings call, newly appointed CEO Alex Chriss laid out a strategic plan to turn the company leaner in its pursuit of
driving profitable growth and ease pressure on its shares, which was one of the worst performers on the Nasdaq
100 Index in 2023. The company expects adjusted earnings per share of $5.10 for 2024, unchanged from a year
earlier. PayPal said the profit forecast reflects adjustments of roughly $1.8 billion, including estimated stock-based
compensation expense and related payroll taxes, alongside a restructuring charge of roughly $120 million. PayPal
posted a fourth-quarter adjusted profit of $1.48 a share for the three months ended Dec 31. Revenue rose 9% to
$8 billion in the quarter, on a currency-neutral basis, also beating expectations of $7.87 billion.

• Spirit Airlines Inc: The company said it expects to operate with a positive cash flow from the second quarter
after reporting a narrower-than-expected loss, on strong domestic demand for travel during the holiday season.
For 2024, airlines are encouraged by a robust holiday season despite ongoing worries regarding the potential
impact of increasing interest rates on consumers' disposable incomes. The company also expects sequential
improvement from the fourth quarter to the current quarter in total revenue per available seat mile - a proxy for
pricing power. Spirit reported an adjusted loss of $1.36 per share for the fourth quarter ended Dec. 31, compared
with analysts' average estimate of a loss of $1.46 per share. The airline reported total operating revenue of $1.32
billion, largely in line with analysts' expectations.

• Steris Plc: The medical equipment maker beat third-quarter profit estimates, helped by strength in its core
healthcare business driven by demand for surgical instruments as more patients catch up on procedures delayed
during the pandemic. The company, which produces surgical instruments, posted quarterly revenue of $1.4 billion,
ahead of analysts' estimates of $1.35 billion. The company is the latest to benefit from easing hospital staffing
shortages and a recent surge in certain surgical procedures, such as joint replacement, especially among older
adults in the United States. Steris expects its fiscal year 2024 reported revenue to increase 10% to 11%, from its
prior forecast of 9% to 10%. Excluding items, the company reported a profit of $2.22 per share, compared with
analysts' estimates of $2.17 per share.

• Sun Life Financial Inc: The company reported a quarterly core profit that topped analysts' estimates, boosted by
strong demand for personal insurance in its home market and the United States. Canada's second-biggest life
insurer has benefited from a slew of acquisitions, partnerships and deals to sell through bank's sales channels,
that has helped it add thousands of clients and grow its reach globally. In Canada, it bought virtual care provider
Dialogue Health Technologies and made an investment in virtual pharmacy Pillway. Those moves helped Sun Life
record 32% growth in core profit in its Canadian operations, also driven by higher volume and yields. In the U.S.,
core profit rose 8%. Earnings from the wealth and asset management unit rose 7%, helped by higher fee-related
revenue and investment income. Overall, underlying profit was C$983 million or C$1.68 a share, in the three
months ended Dec. 31, compared with C$892 million, or C$1.52, a year earlier. Analysts had expected a profit of
C$1.58 a share.

• Tapestry Inc: The Coach handbags maker raised its full-year profit forecast, betting on a demand recovery in
China for its handbags and leather goods. Shares of the Kate Spade handbags maker were up after it also beat
second-quarter sale estimates. After a softer start to the year owing to pressures from a demand slowdown in the
U.S., the company saw a 19% jump in quarterly revenue in Greater China, joining other luxury retailers
like Canada Goose to log resilient sales. Sales at its Coach brand, Tapestry's main revenue churner, rose 6%,
offseting declines of 6% and 4%, respectively, in its Kate Spade and Stuart Weitzman brands. Tapestry's net sales

5
MORNING NEWS CALL - U.S. EDITION Februa 8, 2024

rose to $2.08 billion in the quarter ended Dec. 31, better than analysts' average estimates of $2.06 billion. It now
expects annual earnings per diluted share of $4.20 to $4.25, compared to $4.10 to $4.15 it forecast earlier.

• Thomson Reuters Corp: The company reported higher than expected profit but sales of divisions impacted total
revenue growth, overshadowing sales growth in its three biggest divisions serving legal, tax and accounting
businesses. The Toronto-based news and information provider reported fourth quarter revenue rise of 3% to $1.8
billion, shy of analyst estimates of $1.82 billion. The company reported adjusted fourth quarter earnings per share
of 98 cents. Wall Street expected a profit per share of 90 cents per share. The company said it expected to end its
$1 billion share buyback by the end of the second quarter. Thomson Reuters anticipates 2024 revenue to rise by
about 6%, or slightly ahead of estimates of 5.7%. Operating profit fell 11% to $558 million, factoring in gains from
divestitures last year, but rose 12% excluding one time gains from higher revenue and lower costs.

• Under Armour Inc: The company lifted its annual profit and margin forecasts, helped by easing input and freight
costs even as demand for its products slowed, sending the shares of the apparel maker up before the bell. The
company, which had seen a steep rise in production costs during the pandemic, has now started to reap the
benefits of freight and raw material costs gradually receding. Under Armour now expects annual gross margin to
be up 120 to 130 basis points, compared to previous expectations of a 100 to 125 basis point increase. The
company expects a profit of 57 cents to 59 cents per share for fiscal 2024, compared with its prior forecast of 47
cents to 51 cents. Its third-quarter revenue fell to $1.49 billion from $1.58 billion a year earlier. Analysts on an
average estimated revenue of $1.50 billion.

• Unilever Plc: The company launched a 1.5 billion euro share buyback after volumes increased for the first time
in 10 quarters, although the consumer goods giant's CEO said its performance needs to improve. "Our
competitiveness remains disappointing and overall performance needs to improve," Hein Schumacher said in a
statement. "We are at the early stages of this work and there is much to do but we are moving with speed and
urgency to transform Unilever into a consistently higher performing business." While the company said its full-year
underlying operating profit rose 2.6% to 9.9 billion euros and its underlying operating margin was up 60 basis
points to 16.7%, it missed analyst expectations for operating profit of 10.4 billion euros and a margin of 16.9%. The
company’s stock has fallen about 2% over the past year.

• Walt Disney Co: The company’s CEO Bob Iger hit back at activist investors on Wednesday with a slew of
announcements, including a splashy investment in "Fortnite" maker Epic Games and plans to launch an ESPN
streaming service in 2025. Iger revealed the plans after Disney's board of directors authorized a $3 billion share
repurchase program for the current fiscal year, and declared a dividend of 45 cents a share, a 50% increase from
the dividend paid in January. Earnings-per-share topped Wall Street forecasts. Among the new initiatives, Iger said
Disney would take a $1.5 billion stake in Epic Games. For the just-ended quarter, Disney posted earnings of $1.22
per share, excluding certain items, ahead of analysts' consensus forecast of 99 cents per share. Quarterly revenue
was comparable to a year ago, at $23.5 billion, but short of projections of $23.6 billion. Disney reaffirmed guidance
that its streaming business would reach profitability by September. The Disney+ streaming service shed 1.3 million
subscribers, nearly double the loss of 700,000 that analysts forecast, after an October price increase. The
company forecast it would gain 5.5 million to 6 million Disney+ subscribers in its second quarter, with positive
momentum in per-user revenue.

• Wynn Resorts Ltd: The company beat estimates for fourth-quarter profit on Wednesday, as strength in gaming,
luxury retail and hotel bookings drove steady demand at its Macau properties. Casino resort operators such as
Wynn have been earning record profits from a steady post-pandemic recovery and travel rebound in Macau. After
over a month of negotiations last year, Wynn ratified a five-year contract with Las Vegas hospitality unions to
increase wages for employees. Company's board also announced a dividend of 25 cents per share. Wynn Resorts
posted adjusted profit of $1.91 per share, ahead of analyst estimates of $1.15. Its operating revenues during the
fourth quarter were $1.84 billion, while analysts expected $1.74 billion.

Deals Of The Day

• Hollysys Automation Technologies Ltd: The company said its shareholders voted in favor of a merger with
private equity firm Ascendent Capital Partners. The U.S. listed Chinese automation control system provider said
last year it had agreed that Ascendent Capital, which already owns a 13.7% stake in the company, will acquire the
outstanding Hollysys shares at $26.5 each in a deal valued around $1.66 billion. Superior Technologies Mergersub
Limited, which is affiliated with Ascendent Capital, will merge into Hollysys, and Hollysys will become a wholly
owned unit of Superior Technologies Holding Limited, another Ascendent affiliate, according to a Hollysys
statement.

6
MORNING NEWS CALL - U.S. EDITION Februa 8, 2024

IPO
• Kyverna Therapeutics Inc: The company on Wednesday said it will raise $319 million at a valuation of $898.1
million in an upsized U.S. initial public offering (IPO). The company said it plans to sell 14.5 million shares at $22
each, higher than its earlier price range of $20-$21 per share. Kyverna, backed by Gilead Sciences and Bain
Capital Life Sciences Opportunities, is a clinical-stage cell therapy company that aims to bring disease-modifying
therapeutic benefits to patients suffering from autoimmune diseases. Its shares will begin trading on Feb. 8 on the
Nasdaq under the symbol "KYTX".

In Other News
• Amazon.com Inc & Apple Inc: Spain's high court suspended 194 million euros in fines imposed on Amazon and
Apple by the local antitrust watchdog in July, pending an appeal by the tech giants, an Amazon spokesperson
said. CNMC, as the watchdog is known, fined Amazon and Apple for colluding to prevent dealers other than
Amazon from selling Apple wares on Amazon's websites in Spain. Apple was fined 143.6 million euros and
Amazon 50.5 million euros and both companies at the time said they would appeal. The court decision to suspend
the payment is part of the appeal process, the Amazon spokesperson said.

• American International Group Inc: Britain's antitrust watchdog has launched an investigation into Aviva's
acquisition of AIG's life insurance business, it said, amid concerns the deal could result in "a substantial lessening
of competition". The Competition and Markets Authority (CMA) has invited comments from interested parties until
February 22 and is expected to complete the initial phase of its probe by April 8. Aviva agreed last September to
buy the UK life insurance business of AIG, known as AIG Life UK, for 460 million pounds. The transaction was
expected to add 1.3 million individual protection customers and 1.4 million group protection members to Aviva's
business, the insurer said last year.

• Apollo Global Management Inc & Starbucks Corp: The U.S private equity firm Apollo is in talks to buy a
minority stake in the Middle East, North Africa and central Asia Starbucks franchise operated by Kuwait's AlShaya
Group, three sources close to the matter said. Dubbed "Project Emerald", according to two of the people, the
privately owned retailer is looking to sell a minority stake of about 30% in the business, Reuters reported
previously. Saudi Arabia's sovereign wealth fund, the Public Investment Fund (PIF), which has previously been
shortlisted to buy the stake, is also still involved in the talks, one of the people and a third one said. The Starbucks
unit runs around 2,000 outlets in 13 countries, across the Middle East and North Africa, Kazakhstan and
Azerbaijan. It was valued at between $4 billion and $5 billion in 2022, Reuters reported previously, before it exited
Russia.

• Apple Inc: A federal judge on Wednesday dismissed a lawsuit accusing Apple of overpaying Chief Executive Tim
Cook and other top executives by tens of millions of dollars by miscalculating the value of performance-based
stock awards. U.S. District Judge Jennifer Rochon in Manhattan said the iPhone maker described its pay methods
in detailed compensation tables in its 2023 proxy statement, "precisely" as securities laws and U.S. Securities and
Exchange Commission rules require. Rochon also found no proof that Apple's board of directors acted improperly
in awarding pay, and said the plaintiff, a pension fund affiliated with the International Brotherhood of Teamsters,
did not give the board enough time to consider its objections before suing.

• Astrazeneca Plc & Catalent Inc: The sale of listed contract drugmaker Catalent to the parent of Novo Nordisk
this week demonstrates the importance for big pharma companies of building an independent supply chain,
Astrazeneca said Thursday. AstraZeneca, which is a client of Catalent for some of its drug manufacturing, is
working to boost its in-house capacity to cut reliance on contract drugmakers, Chief Executive Pascal Soriot told
reporters after the release of fourth-quarter results. "It really means for us that we need to be as independent as
we can, in terms of our own supply", said Soriot, citing AstraZeneca's ongoing capital expenditures including its
$300 million investment announced on Tuesday in a facility in Maryland for discovery and development of cell
therapies. "There is a lot more to do", Soriot said of AstraZeneca's need to spend more to build its manufacturing
capacity to produce its portfolio of medicines.

• Boeing Co: A top Boeing executive on Wednesday urged suppliers to maintain the pace of the current 737
production schedule, but acknowledged that an ongoing Federal Aviation Administration (FAA) audit of the
company's 737 MAX production line could force changes to the schedule. Boeing reaffirmed its 737 master
schedule in a Jan. 22 email to its suppliers following the Jan. 5 mid-air cabin panel blowout on a MAX 9, Reuters
previously reported. The supplier master schedule, which lays out the expectation for when suppliers should be at
a given production rate, calls for a production rate for the 737s of 42 per month, starting this month. However, the
FAA capped Boeing's 737 production line at its current rate of 38 aircraft per month while the regulator investigates
Boeing's manufacturing practices -- a situation which could leave Boeing lagging behind its supply chain,
depending on how long the limit on production lasts.

7
MORNING NEWS CALL - U.S. EDITION Februa 8, 2024

• Cencora Inc & Walgreens Boots Alliance Inc: The U.S. drugstore chain on Wednesday said it has cut its stake
in pharmaceutical distributor Cencora for the third time in just over six months, pocketing about $992 million. The
proceeds include around $942 million from shares sold as well as about $50 million from a concurrent share
repurchase by Cencora, formerly AmerisourceBergen. Walgreens has been grappling with waning demand for
COVID-19 vaccines and testing as well as decreased spending on personal care and beauty products by inflation-
weary consumers. It said it now owns around 13% of Cencora's common stock from 15% previously, and that it
would use the sale proceeds primarily to pay down debt.

• Meta Platforms Inc: The company has challenged a supervisory fee amounting to 0.05% of its annual worldwide
net income aimed at covering EU regulators' costs of monitoring compliance with new European Union rules
requiring it to do more to police content. The European Commission has said the Digital Services Act (DSA) levy
applies to 20 very large online platforms, including Meta, Google, Apple and TikTok and two very large online
search engines. The size of the annual fee is related to the number of average monthly active users for each
company and whether it posts a profit or loss in the preceding financial year. Meta said it disagreed with the
methodology used to calculate the fees.

• Microsoft Corp: The company is launching Microsoft 365 Copilot tool for employees as it looks to get more
developers to use artificial intelligence, Business Insider reported on Wednesday. The company has been running
pilot tests to up the usage of AI tools among its community of developers and was planning a wider release of
Microsoft 365 to its teams for the first time, the report said, citing an internal message. The company's investment
and partnership with OpenAI, along with rapidly growing cloud business thanks to customers looking to build AI
applications, has made Microsoft the world's most valuable company, surpassing Apple. Separately, Microsoft will
support the development of voice-based generative artificial intelligence (AI) applications through a partnership
with Indian startup Sarvam AI, it said.

• UnitedHealth Group Inc: The company’s president and chief operating officer, Dirk McMahon, will retire after
serving for more than 20 years in the company, the health insurer said on Wednesday. McMahon, 64, will retire on
April 1, 2024, the company said in a regulatory filing. He previously led different units as their CEO at the industry
bellwether and was appointed to his current role in February 2021. UnitedHealth at that time also announced
Andrew Witty as its chief executive officer, succeeding David Wichmann, who had been at the helm for just over
three years.

• Whirlpool Corp: Britain's antitrust regulator provisionally cleared Turkish domestic appliances maker Arcelik's
proposed purchase of Whirlpool's appliances business in Europe. The Competition and Markets Authority (CMA)
said the deal was unlikely to reduce competition in the market for domestic appliances including washing
machines, dishwashers and cooking appliances. The deal, which would see Whirlpool and Arcelik's European
businesses fold into a new company, was approved by EU antitrust regulators in October.

• Yandex NV: An entity formed of senior Yandex managers will become the Russian internet company's largest
shareholder with a 35% stake should a $5.2 billion cash and share deal go through, Yandex said in a shareholder
circular. The 475 billion rouble deal, announced on Monday, to sell what has been dubbed "Russia's Google" to a
consortium of Russian investors would be one of the largest and most significant corporate transactions since
Russia invaded Ukraine in February 2022. Yandex said the divestment of its Russia-based businesses, which
account for more than 95% of Yandex's revenue, would be put to a shareholder vote on March 7. A group of up to
50 members of the management team would take a 35% stake, the shareholder circular said. Infinity Management,
a company owned by Alexander Chachava, would purchase a 25% stake; IT.Elaboration, owned by Pavel Prass,
and a fund owned by oil major Lukoil would take 15%; and Meridian-Servis, owned by Alexander Ryazanov, would
acquire a 10% stake.

ANALYSIS
US bank lobbyists ranks swell to post-crisis high amid regulatory pushback
The number of big bank Washington lobbyists is the highest since the 2007-09 global financial crisis, driven by
hiring among midsize lenders which are facing new rules and tougher oversight after last year's turbulence, new
lobbying data shows.

ANALYSTS' RECOMMENDATION
• Carlyle Group Inc: JPMorgan raises target price to $45 from $39, as the company delivered strong fourth-
quarter earnings and announced key strategic initiatives and financial targets.

• PayPal Holdings Inc: Evercore ISI cuts target price to $56 from $65, after the company forecast a flat adjusted

8
MORNING NEWS CALL - U.S. EDITION Februa 8, 2024

profit for FY24.

• Roblox Corp: Piper Sandler raises target price to $56 from $52, citing the company's fourth-quarter results that
beat expectations and forecast annual bookings to be above estimates

• Uber Technologies Inc: D.A. Davidson raises target price to $81 from $80, following the company's fourth-
quarter results that were ahead of consensus fueled by growth in delivery and mobility segments.

• Walt Disney Co: Bernstein raises target price to $115 from $103, after the company increased its full-year EPS
guidance, declared higher dividend and announced a $3 billion share buyback program for FY24.

ECONOMIC EVENTS (All timings in U.S. Eastern Time)

0830 Initial jobless claims: Expected 220,000; Prior 224,000
0830 Jobless claims 4-week average: Prior 207,750
0830 Continued jobless claims: Expected 1.878 mln; Prior 1.898 mln
1000 Wholesale inventories, R mm for Dec: Expected 0.4%; Prior 0.4%
1000 Wholesale sales mm for Dec: Expected 0.2%; Prior 0.0%

COMPANIES REPORTING RESULTS

Baxter International Inc: Expected Q4 earnings of 86 cents per share
Dexcom Inc: Expected Q4 earnings of 43 cents per share
Expedia Group Inc: Expected Q4 earnings of $1.68 per share
FirstEnergy Corp: Expected Q4 earnings of 59 cents per share
Healthpeak Properties Inc: Expected Q4 earnings of 10 cents per share
Illumina Inc: Expected Q4 earnings of 02 cents per share
Intercontinental Exchange Inc: Expected Q4 earnings of $1.29 per share
Kellanova: Expected Q4 earnings of 74 cents per share
Mettler-Toledo International Inc: Expected Q4 earnings of $10.10 per share
Mohawk Industries Inc: Expected Q4 earnings of $1.86 per share
Motorola Solutions Inc: Expected Q4 earnings of $3.63 per share
Ralph Lauren Corp: Expected Q3 earnings of $3.54 per share
Regency Centers Corp: Expected Q4 earnings of 50 cents per share
S&P Global Inc: Expected Q4 earnings of $3.15 per share
Take-Two Interactive Software Inc: Expected Q3 earnings of 72 cents per share
TransDigm Group Inc: Expected Q1 earnings of $6.41 per share
Verisign Inc: Expected Q4 earnings of $1.86 per share

CORPORATE EVENTS (All timings in U.S. Eastern Time)

0800 Everest Group Ltd: Q4 earnings conference call
0800 Masco Corp: Q4 earnings conference call
0800 Molina Healthcare Inc: Q4 earnings conference call
0800 T Rowe Price Group Inc: Q4 earnings conference call
0800 Tapestry Inc: Q2 earnings conference call
0830 Baxter International Inc: Q4 earnings conference call
0830 Equifax Inc: Q4 earnings conference call
0830 Hershey Co: Q4 earnings conference call
0830 Intercontinental Exchange Inc: Q4 earnings conference call
0830 Interpublic Group of Companies Inc: Q4 earnings conference call
0830 Kenvue Inc: Q4 earnings conference call
0830 Kimco Realty Corp: Q4 earnings conference call
0830 S&P Global Inc: Q4 earnings conference call
0830 Zimmer Biomet Holdings Inc: Q4 earnings conference call
0900 Allstate Corp: Q4 earnings conference call
0900 DTE Energy Co: Q4 earnings conference call
0900 Philip Morris International Inc: Q4 earnings conference call
0900 Ralph Lauren Corp: Q3 earnings conference call
0900 STERIS plc: Q3 earnings conference call
0930 Borgwarner Inc: Q4 earnings conference call
0930 Kellanova: Q4 earnings conference call

9
MORNING NEWS CALL - U.S. EDITION Februa 8, 2024

1000 Duke Energy Corp: Q4 earnings conference call

1000 Mid-America Apartment Communities Inc: Q4 earnings conference call
1000 Snap-On Inc: Q4 earnings conference call
1100 Globe Life Inc: Q4 earnings conference call
1100 O'Reilly Automotive Inc: Q4 earnings conference call
1100 TransDigm Group Inc: Q1 earnings conference call
1100 Tyson Foods Inc: Annual Shareholders Meeting
1200 Conocophillips: Q4 earnings conference call
1630 Dexcom Inc: Q4 earnings conference call
1630 Expedia Group Inc: Q4 earnings conference call
1630 Take-Two Interactive Software Inc: Q3 earnings conference call
1630 Verisign Inc: Q4 earnings conference call
1700 Illumina Inc: Q4 earnings conference call
1700 Motorola Solutions Inc: Q4 earnings conference call

EX-DIVIDENDS
American Electric Power Company Inc: Amount $0.88
Ameriprise Financial Inc: Amount $1.35
Cencora Inc: Amount $0.51
Charles Schwab Corp: Amount $0.25
Entergy Corp: Amount $1.13
Howmet Aerospace Inc: Amount $0.05
International Business Machines Corp: Amount $1.66
J B Hunt Transport Services Inc: Amount $0.43
Parker-Hannifin Corp: Amount $1.48
Starbucks Corp: Amount $0.57
Truist Financial Corp: Amount $0.52
Visa Inc: Amount $0.52
WestRock Co: Amount $0.30

(All analysts' estimates are according to LSEG IBES data)

10
MORNING NEWS CALL - U.S. EDITION Februa 8, 2024

PICTURE OF THE DAY

U.S. Secretary of State Antony Blinken meets with former Israel Defense Forces (IDF) chief Gadi Eisenkot and
former Israeli Defense Minister Benny Gantz in Tel Aviv, Israel, February 8. Mark Schiefelbein/Pool via REUTERS

(Compiled by Shreya Sabharwal and Ankita Yadav in Bengaluru) © 2024 London Stock Exchange Group pie. All rights reserved.

To subscribe for The Morning Newscall newsletter click here LSEG

10 Paternoster Square, London, EC4M ?LS, United Kingdom
For questions or comments about this report, contact:
morning.newscall@thomsonreuters.com Please visit: LSEG for more information

To launch a Co-branded Morning News Call from your firm, contact: Privacy statement
morninq.newscall@thomsonreuters.com

11