Raphael Stevens

Fox reported a $54 million net loss in its fiscal third quarter due to the costs associated with Fox News’ settlement with Dominion.
Last month, Fox agreed to pay $787.5 million to Dominion Voting Systems to settle a defamation lawsuit over false claims that Dominion’s machines swayed the outcome of the 2020 presidential election.
Fox CEO Lachlan Murdoch said Tuesday the company made the “business decision” to settle and avoid the acrimony of a public six-week trial, and likely years of appeals that would follow.

The News Corporation headquarters, which is also home to Fox News, stands in Manhattan on April 18, 2023 in New York City.
Spencer Platt | Getty Images

Fox Corp. reported a quarterly net loss on Tuesday due to the costs related to its settlement with Dominion Voting Systems, despite revenue that was lifted by the Super Bowl and its fast ad-supported streaming service Tubi.
Fox notched $4.08 billion in quarterly revenue, up 18% from the same period last year. Its advertising revenue soared on the back of the Super Bowl — the most watched program in U.S. TV history with 115 million viewers, which brought in approximately $650 million in gross ad revenue. The company also saw a boost after airing more NFL games during the season and from increased viewership for Tubi.

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The company said Tuesday it swung to a $54 million net loss, or 10 cents per share, in its fiscal third quarter ended on March 31, from a profit of $283 million, or 50 cents per share, in the year-earlier period on charges associated with settlement costs.
Last month, Fox agreed to pay $787.5 million to Dominion to settle a defamation lawsuit over false claims the company’s voting machines swayed the outcome of the 2020 presidential election.
While the company is unlikely to see a big dent in its bottom line from the Dominion case, it did face elevated legal costs in recent quarters related to the lawsuit due to depositions and pretrial preparation, finance chief Steve Tomsic said Tuesday.
Executives added they didn’t expect the litigation costs to affect share buybacks.
The settlement stopped in its tracks a trial that was slated to include appearances from top executives including Chairman Rupert Murdoch, as well as Fox News talent, on the witness stand.

“We made the business decision to resolve this dispute and avoid the acrimony of a divisive trial and a multiyear appeal process, a decision clearly in the best interests of the company and its shareholders,” CEO Lachlan Murdoch said on Tuesday’s earnings call. “The settlement in no way alters Fox’s commitment to the highest journalistic standards across our company or our passion for unabashedly reporting the news of the day.”
The CEO said on Tuesday that the Delaware court had “severely limited” its defenses due to a pretrial ruling. Among the challenges he pointed to was the judge’s ruling that Fox could not use newsworthiness as a defense.
The company has previously said, and Lachlan Murdoch echoed Tuesday, that Fox “always acted as a news organization, reporting on the newsworthy events of the day,” which includes allegations that were being made publicly by then-President Donald Trump and his allies. Fox has argued it was protected by the First Amendment, which the CEO echoed on Tuesday when discussing the remaining defamation lawsuit Fox faces from Smartmatic USA, another voting-tech company.
Lachlan Murdoch noted the Smartmatic case is moving at a “fundamentally different pace” than Dominion, as it is likely to go to trial in 2025, but that all of Fox’s First Amendment defense remains.
Soon after the settlement with Dominion was announced, the network fired top on-air host Tucker Carlson, a surprising move for the network which has seen high ratings for the prime-time program “Tucker Carlson Tonight.”
On Tuesday, the Fox CEO said there would be no changes to prime-time programming strategy, noting the network is “always adjusting our programming and our lineup and that’s what we continue to do.” Fox is the top-rated cable news channel, even as prime-time ratings in Carlson’s slot have slid since his departure. More

Under Armour fell short on profit margins in the fiscal fourth quarter, despite beating earnings and revenue expectations.
The retailer chalked that up to higher promotions.
Its results could signal that to move merchandise, retailers may be back to offering deep discounts.

People walks past a Under Armour clothing store in Siam Center, Bangkok.
Guillaume Payen | SOPA Images | LightRocket | Getty Images

Under Armour’s shares sank Tuesday, even after the athletic apparel and footwear retailer beat Wall Street’s quarterly revenue and earnings expectations.
The reason for the drop may offer insights into challenges faced by other retailers.

The company drove higher sales, in part, by offering lower prices. Under Armour missed fiscal fourth-quarter expectations on gross margin as it leaned more on promotions than expected.
Shares fell more than 6% in afternoon trading.
The company’s finance chief David Bergman chalked up the margin decline to higher promotions as Under Armour marked down merchandise from prior seasons and sold it through off-price retail.
Under Armour warned the issues could persist. The company said it expects margins will still be under pressure as higher promotions outweigh lower freight costs. Diluted earnings per share are expected to range between a loss of 3 cents to a loss of 5 cents in the first quarter, below expected earnings of 6 cents per share, according to FactSet. It said it expects margins to improve as the year goes on.
Under Armour’s results could spell trouble for retailers that report quarterly results in the coming weeks. The report could signal that to move merchandise, companies may have to offer discounts and sacrifice more of their profits.

In the coming weeks, retailers including Walmart, Target, Best Buy and Macy’s, will shine a light on consumer health and reveal how much pricing power they have. It will also help illustrate how much of Under Armour’s issues are specific to the company, rather than representative of the broader industry and economic backdrop.
Promotion levels have swung dramatically due to pandemic-related trends. During the early years of Covid, retailers had lower-than-usual markdowns as they struggled to keep shelves stocked due to supply chain delays. They then benefited from huge consumer spending fueled by stimulus payments.
The pendulum swung last spring, however. Target, Kohl’s, Gap and others suddenly had a glut of extra inventory — including a lot of popular pandemic categories like patio furniture and athleisure that had fallen out of favor. The excess supply ushered in a wave of deep discounts.
Now, retailers are dealing with another dynamic. Consumers are thinking twice about discretionary spending as they rack up bigger bills at the grocery store or book trips instead of filling up their closets.
Simeon Siegel, a retail analyst for BMO Capital Markets, said the pandemic gave retailers a chance to press the reset button. Their resolve, however, has faded.
“Very few companies have the fortitude to forgo volume for the sake of profits outside of a global pandemic,” he said. “It’s very easy to fall back to the promotional drug when push comes to shove.”
As higher transportation and supply chain costs roll off, he expects many retailers won’t see the benefit because they are “returning to the promotions cookie jar.”
The company’s results reflect company-specific challenges along with consumer trends. The company recently tapped Stephanie Linnartz as its new CEO to lead efforts to grow its online business, refresh its brand and better compete with rivals Nike and Lululemon. She stepped into the role in late February.
Some of the company’s weakest sales in the recent quarter came from North America. Net sales in the region grew 2.5% in the three-month period compared with 13.8% growth in Europe and the 23.6% growth in the Asia-Pacific region.
On an earnings call, Linnartz said the company is “continuing to navigate a legacy of higher than desired promotional activities in our home market.”
She said the apparel and footwear brand bears part of the blame for the trend due to inconsistent marketing and underwhelming presentation in stores. She said the company will strengthen its brand in the coming year.
Inventory levels are still a factor for some retailers, too. As of the end of the quarter, Under Armour had nearly $1.2 billion in inventory, up 44% year over year.
Bergman said about half of that is inventory that Under Armour has chosen to pack and hold for future sales.
For its fiscal fourth quarter, Under Armour reported adjusted earnings per share of 18 cents, higher than analysts’ expectations of 15 cents per share, according to Refinitiv.
The company’s net income for the three-month period that ended March 31 was $170.5 million, or 38 cents per share, compared with a net loss of $59.6 million, or 13 cents per share, during the year-earlier period. Sales jumped 8% to $1.4 billion from $1.3 billion in the year-ago period. That exceeded analysts’ expectations of $1.36 billion, according to Refinitiv.
— Robert Hum contributed to this story. More

Shares of Novavax soared after the company unveiled promising new vaccine data and a broad cost-cutting push that includes reducing 25% of its workforce. 
The announcements are a sign of hope for investors after last quarter when the biotech company raised doubts about its ability to stay in business.
Novavax is now forecasting 2023 sales of $1.4 billion to $1.6 billion in its first-quarter earnings report.

A health worker prepares a dose of the Novavax vaccine as the Dutch Health Service Organization starts with the Novavax vaccination program on March 21, 2022 in The Hague, Netherlands.
Patrick Van Katwijk | Getty Images

Shares of Novavax jumped more than 25% at one point in premarket trading Tuesday after the company unveiled promising new vaccine data and a broad cost-cutting push that includes major layoffs. 
The announcements are a sign of hope for investors after last quarter, when the biotech company raised doubts about its ability to stay in business and decided not to provide full-year guidance.

Novavax is now betting on its cost controls and new vaccines to help it stay afloat, forecasting 2023 sales of $1.4 billion to $1.6 billion, according to its first-quarter earnings report.
The Gaithersburg, Maryland-based company said its combination vaccine that targets both Covid and the flu produced a strong immune response against the viruses and was well-tolerated in a phase two trial. Novavax shared similar trial results on its stand-alone flu vaccine and new high-dose Covid shot. 
The company’s Covid vaccine is its lone marketed product after 35 years in business.
Novavax also announced a global cost-cutting plan, which will involve slashing 25% of the company’s workforce. Approximately 20% of the company’s 2,000 full-time equivalent workers will be impacted, a Novavax spokesperson told CNBC. 
The plan also involves consolidating the company’s facilities and infrastructure. 

Novavax expects the plan to reduce 2023 R&D and SG&A expenses by around 20% to 25% compared with those costs in 2022. The company reported R&D expenses of $258 million and SG&A expenses of $162 million last year.
The plan is also projected to reduce 2024 R&D and SG&A costs by approximately 40% to 50% compared with 2022. 
“Novavax is focused on significantly reducing our expenses while retaining the key capabilities needed to execute our operating plans,” the company said in the release.
Novavax still reported a bleak first quarter that missed Wall Street’s estimates.
The biotech company posted first-quarter sales of $81 million, down from the $704 million it reported during the same period a year ago. Novavax said the steep drop was due to “an emerging seasonal pattern” for Covid vaccines.
Analysts expected the company to rake in $87.6 million in revenue for the quarter, according to Refinitiv survey.
Novavax reported a net loss of $294 million, or $3.41 per share, compared to a net income of $203 million, or $2.56 per share, during the first quarter of 2022. Analysts estimated the company would post a loss of $3.46 per share, the Refinitv survey said.
Novavax shares were down 27% for the year through Monday’s close, putting the company’s market value at roughly $643 million.  
Novavax’s road to launching its Covid vaccine in the U.S. was rocky.
The company raced against Pfizer and Moderna to develop the first Covid vaccine early in the pandemic. But Novavax’s efforts were hindered by manufacturing snags and regulatory glitches, placing the company far behind its rivals. 
Novavax’s shot finally won Food and Drug Administration approval last year, but uptake has been sluggish. 
The FDA in October also signed off on Novavax’s Covid booster. But most Americans had already opted for Pfizer and Moderna’s updated omicron boosters by then. 
Novavax’s shot is the first Covid vaccine to use protein technology, a decades-old method for fighting viruses used in routine vaccinations against hepatitis B and shingles. 
The shot works differently than its mRNA-based counterparts from Pfizer and Moderna but achieves the same outcome: teaching your body how to fight Covid. More

General Motors has hired former Apple executive Mike Abbott to lead a newly created software unit for the Detroit automaker.
Abbott, former vice president of engineering for Apple’s Cloud Services division, will join GM as executive vice president of software, effective May 22.
Software, specifically monetizing it, is a major focus for automakers such as GM, as it eyes reoccurring revenue opportunities such as subscriptions to boost profits.

A sign with the General Motors quality mission statement stands in the lobby at the GM Warren Tech Center in Warren, Michigan.
Rebecca Cook | Reuters

DETROIT – General Motors has hired former Apple executive Mike Abbott to lead a newly created software unit for the Detroit automaker.
Abbott, former vice president of engineering for Apple’s Cloud Services division, will join GM as executive vice president of software, effective May 22. He will report to GM CEO Mary Barra.

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Abbott’s newly created role will bring together three separate functions within the company: software-defined vehicle and operating systems; information and digital technology; and the company’s digital business.
Software, specifically monetizing it, is a major focus for automakers such as GM, as they eye reoccurring revenue opportunities such as subscriptions to boost profits.
GM has a target to grow profit margins and double its revenue to about $280 billion by the end of this decade. That includes significant growth in new business units and software.
“Mike’s experience as a founder and entrepreneur coupled with his proven track record creating and delivering some of the market’s most compelling software-defined solutions for consumers and companies make him an excellent fit at GM,” Barra said in a statement.
At Apple, Abbott was the top executive in charge of cloud initiatives, including iCloud and infrastructure for services like iMessage and FaceTime. It was reported in March that he planned to leave the tech giant.

Abbott, in a statement Tuesday, said: “I know that software is the catalyst for redefining experiences for consumers and enterprises like never before.”
He characterized software as a “massive” opportunity for the company. More

Electric vehicle startup Fisker on Tuesday reported a wider first-quarter loss than expected and cut its production guidance for the full year.
CEO Henrik Fisker told CNBC that the company expects regulatory approval to begin deliveries of the Ocean in the U.S. before the end of May.
It said it expects to build 1,400 to 1,700 vehicles in the second quarter, assuming its suppliers ramp up as expected.

Henrik Fisker stands with the Fisker Ocean electric vehicle after it was unveiled at the Manhattan Beach Pier ahead of the Los Angeles Auto Show and AutoMobilityLA on November 16, 2021 in Manhattan Beach, California.
Patrick T. Fallon | AFP | Getty Images

Electric vehicle startup Fisker on Tuesday reported a wider first-quarter loss than expected and cut its production guidance for the full year, both of which it blamed on last minute snags as it begins production of its Ocean SUV.
But CEO Henrik Fisker told CNBC that the company expects regulatory approval to begin deliveries of the Ocean in the U.S. before the end of May. The company began delivering vehicles to customers in Europe last week.

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Shares were down about 16% in premarket trading after the news.
Here are the key numbers from Fisker’s first-quarter earnings report, together with consensus Wall Street estimates as reported by Refinitiv:

Loss per share: 38 cents, versus a loss of 30 cents expected.
Revenue: About $198,000, versus $14.4 million expected.

Fisker’s net loss for the quarter was $120.6 million, or 38 cents per share, a wider-than-expected number that Fisker attributed to higher research and development expenses that it’s not expecting to repeat. A year ago, Fisker reported a net loss of $122.1 million, or 41 cents a share, with no revenue.
Fisker had $652.5 million in cash remaining as of March 31, down from $736.5 million at the end of 2022. The company raised about $47 million via direct stock sales during the quarter, it said.
Fisker said it had about 65,000 reservations for the Ocean as of May 8, roughly the same number it had when it reported its fourth-quarter results in February. It has over 6,000 reservations for its upcoming second model, a lower-cost EV called the Pear that will be built by Foxconn at the former Lordstown Motors plant in Ohio starting in 2025.

Fisker now expects its manufacturing partner, Magna International, to build 32,000 to 36,000 Oceans at its Austrian contract-manufacturing plant this year, down from 42,400 in its earlier guidance.
It said it expects to build 1,400 to 1,700 vehicles in the second quarter, assuming its suppliers ramp up as expected. After that, it expects to quickly increase production in the third quarter to a run rate of about 6,000 vehicles per month for the rest of 2023.
“We are ready to go full speed on production next week,” Henrik Fisker told CNBC’s Phil LeBeau on Tuesday. “[By the] end of this month, we are already going to produce 55 cars a day.” More

Boeing won an order from low-cost European carrier Ryanair for at least 150 of the manufacturer’s 737 Max planes.
The budget carrier’s order is its largest and the latest in a string of big sales for Boeing.
The manufacturer is in the process of ramping up production of its bestselling plane.

A Ryanair Boeing 737 MAX 8 aircraft as seen flying, landing and taxiing at Eindhoven Airport EIN.
Nicolas Economou | Nurphoto | Getty Images

Ryanair said it plans to buy at least 150 Boeing 737 10 Max planes with options for 150 more.
It’s the budget carrier’s biggest order and the manufacturer’s latest sizable deal for new planes as airlines replace aging jets and grow their fleets.

Shares of Boeing were up about 2% in premarket trading Tuesday after the company reported the order.
Ryanair plans to operate the Max 10s, which haven’t yet been certified by regulators, with 228 seats on board.
The 150 planes in the firm order are worth more than $20 billion at list prices, but airlines generally receive significant discounts for such big sales. Ryanair stopped negotiations for a big Max order in September 2021 because of a dispute over pricing.
Ryanair’s CEO, Michael O’Leary, said the new planes will replace older 737 jets in its fleet. The 150 additional jets it has optioned would allow it to fly more than 300 million passengers a year by 2034, he said.
The ultra-low-cost airline flew 97 million passengers in the 12 months ended March 31, down from 149 million before the Covid pandemic, according to a company report.

The budget carrier’s order is the latest in a string of big sales for Boeing, which has reached agreements to sell hundreds of planes to customers including Air India, Saudia and United Airlines in recent months.
Boeing’s next challenge is ramping up production of the 737 Max. Last month the company said it aims to make 38 each month, up from 31. It also plans to increase its 787 Dreamliner production to five a month late this year, up from three. More

Electric heavy truck maker Nikola said that it’s “refocusing the company on North America” as it exited a European joint venture with its chassis supplier.
Nikola’s net loss for the quarter was $169.1 million, or 26 cents per share, adjusted, wider than year-ago figures.
Nikola produced 63 battery-electric trucks and delivered 31 to dealers in the quarter. Its dealers sold 33 trucks to end customers during the period.

Nikola Motor Company
Source: Nikola Motor Company

Electric heavy truck maker Nikola said that it’s “refocusing the company on North America” as it exited a European joint venture with its chassis supplier.
The news came as the company reported its first-quarter results. Here are the key numbers, together with Wall Street estimates as reported by Refinitiv.

Adjusted loss per share: 26 cents, versus 26 cents expected.
Revenue: $11.1 million, versus $12.5 million expected.

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3 hours ago

Nikola’s net loss for the quarter was $169.1 million, or 26 cents per share, adjusted. A year ago, Nikola lost $152.9 million, or 21 cents per share on an adjusted basis, on revenue of $1.9 million.
Nikola had $121.1 million in cash remaining as of March 31, down from $233.4 million at the end of 2022.
As part of a realignment to conserve cash, Nikola announced overnight that it has sold its share of a European joint venture to its longtime partner, Italian heavy-truck maker Iveco Group, for $35 million in cash and 20.6 million Nikola shares that will be returned by Iveco. Under the deal, Iveco will continue to supply chassis and related components to Nikola and will remain an investor in the company.
“Manufacturing and energy are capital intensive businesses, and we need to remain focused where we have competitive and first mover advantages,” Nikola said in a statement.
Nikola produced 63 battery-electric trucks and delivered 31 to dealers in the quarter. Its dealers sold 33 trucks to end customers during the period. Production of Nikola’s next model, a longer-range fuel-cell powered version of its semitruck, is on track to begin in July as previously expected.

Nikola currently has orders for a total of 140 fuel-cell trucks for 12 fleet customers, it said.
Nikola said it will temporarily suspend production of the battery-electric truck while it reconfigures its assembly line to build both the battery-electric and fuel-cell trucks. While it expects the fuel-cell truck to become its primary product, it will continue to build battery-electric trucks to order after production of the fuel-cell truck begins, it said.
“As we move forward, we will be focusing on the North American market, hydrogen fuel cell trucks, the HYLA hydrogen refueling business, and autonomous technologies,” CEO Michael Lohscheller said. “We have the right products at the right time.” More