Yahoo Finance Trending tickers: Entain l Salesforce l B&M | C3.ai
A look at the stocks making headlines on Wednesday
Entain plc (ENT.L)
Shares in Ladbrokes-owner Entain fell 2% on Wednesday, putting the company at the bottom of the FTSE 100 index as it faces a hefty fine from Her Majesty's Revenue & Customs (HMRC) following a four-year investigation into bribery allegations, relating to a former subsidiary in Turkey.
The sports betting and gaming firm, which also owns brands such as bwin, Coral, PartyPoker and Sportingbet, said it was in deferred prosecution agreement (DPA) negotiations with the Crown Prosecution Service (CPS) and is working towards achieving a resolution on the investigation.
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Entain has acknowledged that historical misconduct involving former third-party suppliers and former employees of the group may have occurred.
"While the company cannot say at this stage what the consequences of the investigation will be, it is likely that they will include a substantial financial penalty which is yet to be determined," the company said in a statement.
Problematic practices in Britain's gambling industry have forced the gambling commission to impose several large fines in recent years. Entain was fined £17m ($21.03) in 2022.
Salesforce (CRM)
Investors were keeping across shares in Salesforce on Wednesday ahead of the US cloud-based software company’s latest results.
Analysts are expecting the group to have benefited from a robust demand environment as customers undergo a major digital transformation, according to Zacks Equity Research.
However, Zacks also noted a decline in software spending by small and medium businesses amid ongoing macroeconomic headwinds and geopolitical issues that might have affected the group’s fiscal first-quarter performance.
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“Further, stiff competition from Oracle and Microsoft is a concern, along with forex headwinds,” Zacks said.
For the fiscal first quarter, the company projects total revenues between $8.16bn and $8.18bn.
The Zacks Consensus Estimate for revenues is pegged at $8.17bn, indicating an increase of 10.2% from the year-ago quarter’s figure. The consensus mark for earnings is at $1.61 per share, implying a year-over-year increase of 64.3%.
B&M European Value Retail SA (BME.L)
Shares in B&M were up nearly 7% on Wednesday, putting the company at the top of the FTSE 100 basket. It comes after the variety retailer forecast higher core earnings for its 2023-24 financial year.
However, the company’s pre-tax profits of £436m for the 12 months to March 25, 2023, were down from the £525m it posted for the same period last year.
However, its revenue increased over the year from £4.6bn to £4.9bn. Moreover, by the end of the financial year, B&M said it had a total of 707 stores in the UK after opening 21 and closing or relocating 15.
"B&M has been a major beneficiary of consumers trading down thanks to its expansion in the food and grocery sector. However, our experts say that if B&M is to retain these customers in the future they will need to do more than simply offering cheap and cheerful grocery options," Orwa Mohamad, analyst at Third Bridge, commented.
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AJ Bell investment director, Russ Mould, also commented: “In theory B&M should be well placed against a backdrop where households are really watching their pennies and that is largely reflected in this latest trading update. The company is also generating lots of cash which it can return to shareholders.
“There is the odd warning sign here and there though, which the market may give some attention to. In particular, the company’s inventory position has increased a touch – hinting at a potential slowdown in non-food sales,” he added.
C3.ai (AI)
The AI ticker was also trending high on Wednesday ahead of the US tech company’s latest earnings results. Its stock gained nearly 28% on Tuesday.
Like many firms in the space, C3.ai has been expanding its artificial intelligence services as the sector continues to gain momentum.
According to Zacks Equity Research, the company’s fourth-quarter fiscal 2023 results are expected to reflect strengthening momentum in its subscription business.
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Zacks also said continued investments in technology innovation, significant generative AI developments, expanding product portfolio and partner ecosystem are expected to remain key catalysts in driving its growth.
The Zacks Consensus Estimate for subscription revenues for the fiscal fourth quarter is pegged at $57m, suggesting growth of 1.24% from the figure reported in the year-ago quarter.
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