Business

Boeing has handed over 309 new aircraft to customers in the first seven months of the year.
The manufacturer has been ramping up output of its bestselling 737 Max to 38 a month.
Aircraft deliveries from rival Airbus have outpaced Boeing’s so far this year.

Boeing 787 Dreamliners are built at the aviation company’s North Charleston, South Carolina, assembly plant on May 30, 2023. 
Juliette Michel | AFP | Getty Images

Boeing delivered 43 aircraft to customers last month as it tries to ramp up output with airline customers clamoring for new jets.
The handovers were down from 60 in June but brought Boeing’s total deliveries in the first seven months of the year to 309, an increase of nearly 28% from the same period in 2022.

Last month, Boeing said it was transitioning production of its bestselling 737 Max plane to a pace of 38 a month from 31. Despite production problems earlier this year and a brief strike at key supplier Spirit Aerosystems, Boeing’s CFO, Brian West, last month reiterated the company still expects to deliver 400 to 450 Max jets this year.
Boeing’s chief rival, Airbus, last week said it has handed over 381 planes in the first seven months of the year.
Boeing said it logged net orders for 52 aircraft in July, which included a firmed-up order from Saudi Arabian Airlines, or Saudia, for 39 Boeing 787 Dreamliners, a deal first announced in March. More

Eli Lilly raised its full-year guidance as second-quarter profit jumped 85% from the same period a year ago on strong sales from the pharmaceutical giant’s drug pipeline.
The company reported $8.31 billion in sales for the quarter, up 28% from the same period a year ago. 
The company saw strong results in breast cancer pill Verzenio, Type 2 diabetes drug Jardiance and newer drugs like Mounjaro, a diabetes injection.

Sopa Images | Lightrocket | Getty Images

Eli Lilly on Tuesday raised its full-year guidance as second-quarter profit jumped 85% from the same period a year ago on strong sales from the pharmaceutical giant’s diabetes treatment Mounjaro and other drugs.
The company now expects full-year revenue of between $33.4 billion and $33.9 billion, up from a previous forecast of $31.2 billion to $31.7 billion. Eli Lilly also increased its adjusted earnings guidance to a range of $9.70 to $9.90 per share for the year, up from a range of $8.65 to $8.85.

Shares of Eli Lilly jumped 9% in premarket trading Tuesday.
Here’s how Eli Lilly performed, compared with Wall Street expectations, based on a survey of analysts by Refinitiv:

Adjusted earnings: $2.11 per share, vs. $1.98 per share expected
Revenue: $8.31 billion, vs. $7.58 billion expected

The company booked net income of $1.76 billion, or $1.95 per share, for the quarter. That’s up from net income of $952.5 million, or $1.05 per share, for the same period a year ago. 
Accounting for charges associated with some intangible assets and losses on securities, the company recorded adjusted income of $1.9 billion, or $2.11 per share.
The company’s $8.31 billion in sales for the quarter marked a 28% increase from the same period a year ago. 

Drug results

Revenue growth was driven by sales of breast cancer pill Verzenio, which rose 57% to $926.8 million for the quarter. Sales of Jardiance, a tablet that lowers blood sugar in Type 2 diabetes patients, climbed 45% to $668.3 million for the second quarter.
Newer drugs like Mounjaro, the company’s Type 2 diabetes injection, also fueled revenue growth, posting $979.7 million in sales for the quarter. The drug was first approved in the U.S. in May 2022 and notched just $16 million in sales in the year-ago period. 
Investors have pinned high hopes on Mounjaro’s potential mega-blockbuster trajectory beyond diabetes, with some research suggesting that it may be even more effective at reducing weight than Novo Nordisk’s popular Wegovy and Ozempic injections.
Last month, Eli Lilly filed for Food and Drug Administration approval of the injection for chronic weight management.
Eli Lilly said it “has experienced and continues to expect intermittent delays fulfilling orders of certain Mounjaro doses given significant demand.”
The company in April sold the rights to its emergency diabetes treatment Baqsimi to Amphastar Pharmaceuticals, which brought in $579 million to the top line during the second quarter.
But sales of cancer drug Alimta weighed on revenue. The treatment, first launched in 2004, saw sales plunge 73% to $60.9 million for the second quarter. 
Alimta’s last U.S. patent expired in May, resulting in lower demand as cheaper generic competitors entered the market. 
Eli Lilly also reported no sales from its Covid-19 antibody treatments, compared with $129 million in the second quarter of 2022. The Food and Drug Administration rescinded its approval of the company’s antibody bebtelovimab in November.

Pipeline and acquisitions

Eli Lilly’s stock has been on a tear in recent months, driven in part by positive trial results for its Alzheimer’s drug, donanemab, and the company’s progress with its promising obesity drug pipeline. 
Shares of Eli Lilly are up more than 24% for the year. With a market value of roughly $431 billion, Eli Lilly is the second-largest pharmaceutical company based in the U.S. after Johnson & Johnson.
Eli Lilly in July announced a $1.93 billion deal to buy Versanis, a privately held obesity drug maker. 
This story is developing. Please check back for updates. More

Beyond Meat reported weak sales, cut its full-year revenue forecast and walked back its goal of becoming cash-flow positive in the second half of the year.
U.S. demand for Beyond’s meat alternatives is declining at a faster rate, even as the company cuts its prices.
Beyond’s stock is up 5% this year, giving it a market value of $830 million.

Vegetarian sausages from Beyond Meat Inc, the vegan burger maker, are shown for sale at a market in Encinitas, California.
Mike Blake | Reuters

Beyond Meat’s stock fell more than 15% in premarket trading Tuesday after the company reported weak sales, cut its full-year revenue forecast and walked back its goal of becoming cash-flow positive in the second half of the year.
The company, which makes meat substitutes, has struggled for roughly two years as U.S. consumer interest in its products has waned. As its sales have declined, Beyond has turned its attention to cutting costs and becoming a profitable company.

However, CEO Ethan Brown told analysts on the company’s conference call Monday evening that its weak sales will likely delay its target of becoming cash-flow positive by the second half of 2023.
U.S. demand for Beyond’s meat alternatives appears to be declining at a faster rate, even as the company cuts its prices 8.6%, mostly through discounts. Its U.S. retail volume fell 34% during the period, while its domestic food service volume cratered 44%
Beyond’s second-quarter net sales fell 30.5% to $102.1 million, falling short of Refinitiv estimates of $108.4 million. The company reported a loss of 83 cents per share, beating the loss of 86 cents per share expected by Wall Street.
Beyond also cut its full-year revenue outlook to a range of $360 million to $380 million, compared to the $388 million Wall Street expected, according to Refinitiv.
To reinvigorate demand, Beyond is focusing on fighting consumer perceptions that its products aren’t healthy. Brown blamed special interest groups for seeding fear and doubt around Beyond’s ingredients and manufacturing process.
As of Monday’s closing price, Beyond’s stock was up 24% this year, giving it a market value of $981 million. Its share price is hovering under $13, a far cry from four years ago, when it was trading at an all-time high of $234.90 and valued at $13.4 billion. More

Shares of Novavax jumped as much as 20% after the Covid vaccine maker reported a surprise second-quarter profit.
The results come as Novavax works to strengthen its financial position, especially after it raised doubts about its ability to stay in business earlier this year.
The company is pinning its hopes on the launch of its updated Covid-19 shot this fall, a global cost-cutting push launched in May and a promising vaccine pipeline to help it stay afloat. 

Medical syringes and Novavax logo displayed in the background are seen in this illustration photo taken in Krakow, Poland on December 2, 2021.
Jakub Porzycki | NurPhoto | Getty Images

Shares of Novavax jumped as much as 20% in premarket trading Tuesday after the Covid vaccine maker reported a surprise second-quarter profit.
The results come as Novavax works to strengthen its financial position, particularly after it raised doubts about its ability to stay in business earlier this year.

The company is pinning its hopes on the launch of its updated Covid shot in the U.S. commercial market this fall, a global cost-cutting push announced in May and a promising vaccine pipeline to help it stay afloat. 
The Maryland-based company’s stock has dropped more than 23% this year, putting its market value at around $650 million. 
Here’s what Novavax reported compared with Wall Street’s expectations, based on a survey of analysts by Refinitiv. 

Earnings per share: 58 cents per share, vs. a loss of $1.39 per share expected
Revenue: $424.43 million, vs. $239.2 million expected

Novavax posted a net income of $58 million, or 58 cents per share, for the quarter. That compares with a net loss of $510.5 million, or $6.53 per share, reported during the same quarter last year. 
The biotech company generated second-quarter sales of $424.4 million, up from the $185.9 million from the same period a year ago. 

Novavax CEO John Jacobs told CNBC that the company pulled forward some sales that “might have drifted” into the third quarter from prior Covid vaccine purchase agreements, recognizing those sales instead in the second quarter. 
He noted that there will be “little to no sales” in the third quarter because the Food and Drug Administration won’t make a decision on Novavax’s new Covid shot until late September. The company can only start rolling out the vaccine to the public after a potential approval from the agency. 
Most of Novavax’s revenue in the third quarter will come from grants, according to Jacobs. He said the company will squeeze “most of the seasonal opportunity” of its new shot into the fourth quarter, when the nation typically sees Covid cases and vaccinations peak. 
The company lowered its full-year revenue forecast to $1.3 billion to $1.5 billion, down slightly from the $1.4 billion to $1.6 billion guidance provided in May. 
But Jacobs noted that the adjustment reflects part of a cash settlement the Canadian government agreed to pay for forfeiting Covid vaccine doses that were previously scheduled for delivery.
The new guidance does not include $100 million in cash that Canada paid during the second quarter – an amount that “would have been revenue” had the parties completed the transaction, he said.
“We’re still on track for the revenue, but we’d rather have it in cash,” Jacobs told CNBC. “That’s a good thing for Novavax.” 
Novavax also said it’s continuing to execute its global cost-cutting plan, which involves slashing 25% of the company’s workforce and consolidating the company’s facilities and infrastructure, among other efforts. 
The plan is expected to reduce 2024 research and development as well as selling, general and administrative expenses costs by approximately 40% to 50% compared with 2022.
SG&A expenses usually include the costs of promoting, selling and delivering a company’s products and services.
The company reported R&D expenses of $258 million and SG&A expenses of $162 million last year.

SK bioscience deal

Separately on Tuesday, Novavax announced a new strategic partnership agreement with SK bioscience, a South Korea-based biotech manufacturer. 
The agreement extends a previous contract manufacturing arrangement between the two companies, which provided SK bioscience with the rights to exclusively manufacture and commercialize Novavax’s Covid vaccine in South Korea and the non-exclusive rights to do so in Thailand and Vietnam. 
Novavax CEO Jacobs noted the company will receive royalty payments for sales in those markets and an upfront payment of $4 million from SK bioscience.
SK bioscience will also purchase $85 million in Novavax’s common stock at $13 per share, reflecting a 59% premium to the past 90-day trading value. 
The agreement also removes $195 million in manufacturing liabilities from Novavax’s balance sheet, according to Jacobs. In exchange, Novavax will pay SK bioscience $65 million in cash. More

Billionaire Charlie Ergen is consolidating his telecom empire, merging his satellite and broadband services companies Dish Network and EchoStar in an all-stock deal.
As of Monday’s close, EchoStar had a nearly $2 billion market value, while Dish’s market value was just above $4 billion, according to FactSet.
The deal reunites two businesses that have been separate for about 15 years, after Ergen spun EchoStar out of Dish in 2008.

Charles Ergen, chairman and co-founder of Dish Network Corp
Jonathan Alcorn | Bloomberg | Getty Images

Billionaire Charlie Ergen is consolidating his telecom empire, merging his satellite and broadband services companies Dish Network and EchoStar in an all-stock deal.
“This is a strategically and financially compelling combination that is all about growth and building a long-term sustainable business,” Ergen, chairman of both Dish and EchoStar, said in a statement.

As of Monday’s close, EchoStar had a nearly $2 billion market value, while Dish’s market value was just above $4 billion, according to FactSet.
The deal reunites two businesses that have been separate for about 15 years, after Ergen spun EchoStar out of Dish in 2008. Founded in 1980, EchoStar sold satellite dishes before launching its own subscription satellite service in 1995.
Since the spinoff, Dish has acquired assets from EchoStar, including its broadcast satellite service, while EchoStar has focused on satellite communications, such as its Hughes subsidiary’s consumer internet service.

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The merger will exchange 2.85 shares of Dish common stock for each share of EchoStar stock, a 12.9% premium for EchoStar shareholders as of the July 5 trading close. The companies noted that was “the last full trading day prior to media speculation regarding a potential transaction,” with Semafor reporting on July 6 that a potential combination was under consideration.
EchoStar CEO Hamid Akhavan will serve as CEO of the combined company. Erik Carlson, the current CEO of Dish, will leave the company after the transaction closes.

Ergen and Akhavan will join CNBC’s David Faber at 10:15 a.m. ET for an exclusive interview.
Dish – which owns also Boost Mobile, Ting, Republic Wireless and Gen Mobile – is looking to expand beyond satellite TV into the mobile telecom market, with its Dish Wireless business. As part of Tuesday’s merger announcement, Dish said its 5G network now covers more than 70% of the U.S.
Dish has also expanded into streaming TV services, through its Sling TV subsidiary.
EchoStar – which launched its most powerful satellite yet, JUPITER 3, last month – also reported second-quarter results on Tuesday. The company reported net income of $9.1 million and revenue of $453.1 million for the quarter, marking year-over-year declines of 13% and 9%, respectively.
EchoStar subsidiary Hughes saw total broadband subscribers decline to 1.1 million at quarter end, with the company noting increasing bandwidth usage by U.S. subscribers and “competitive pressures.” The company’s new JUPITER 3 satellite is anticipated to bolster Echostar’s network capacity, with service slated to begin in the fourth quarter. More

Restaurant Brands International reported second-quarter adjusted earnings of 85 cents per share and revenue of $1.78 billion.
Burger King and Tim Hortons both reported double-digit same-store sales growth.

Burger King fast food restaurant with menu and customers.
Jeff Greenberg | Universal Images Group | Getty Images

Restaurant Brands International on Tuesday reported double-digit same-store sales growth at Burger King and Tim Hortons for its second quarter.
Shares of the company were roughly unchanged in premarket trading.

Here’s what the company reported compared with what Wall Street was expecting, based on a survey of analysts by Refinitiv:

Earnings per share: 85 cents adjusted vs. 77 cents expected
Revenue: $1.78 billion vs. $1.75 billion expected

Restaurant Brands reported second-quarter net income of $351 million, or 77 cents per share, up from $346 million, or 76 cents per share, a year earlier.
Excluding items, the company earned 85 cents per share.
Net sales rose 8.3% to $1.78 billion. Restaurant Brands’ same-store sales climbed 9.6% in the quarter, driven by strong growth at Tim Hortons and Burger King.
The company’s international markets and Tims’ locations in Canada saw customer visits increase during the quarter, Restaurant Brands CEO Josh Kobza told CNBC. However, U.S. traffic ranged from flat to “a little bit negative” across Popeyes, Burger King and Firehouse Subs.

Other restaurant companies, including rival McDonald’s, have reported growing U.S. traffic as customers trade down from more expensive restaurants. Kobza said it is hard to say if Restaurant Brands is seeing the same behavior.
Tim Hortons, which accounts for more than half of Restaurant Brands’ revenue, reported same-store sales growth of 11.4%, topping StreetAccount estimates of 6.5%. The coffee chain’s same-store sales climbed 12.5% in its Canadian home market.
“We showed strength across all our core categories, but also a lot of growth in some of the big target places we’re trying to take the business, like our P.M. food and cold beverages,” Kobza said.
Recent menu launches at Tims have included its BBQ Crispy Chicken bowl and Sparkling Quenchers, which both aim to draw in more customers in the afternoon.
Burger King’s same-store sales rose 10.2%, beating estimates of 5.3%. In the United States, where the company is trying to reinvigorate the brand, the burger chain’s same-store sales increased 8.3%.
Restaurant Brands spent $10 million on advertising for Burger King in the U.S. during the quarter. The company also invested $11 million in restaurant upgrades, including renovations. Restaurant Brands plans to spend $400 million on Burger King’s comeback in its home market over the course of the turnaround.
Popeyes saw same-store sales growth of 6.3%, topping expectations of 3.5%.
Firehouse Subs, the most recent addition to Restaurant Brands’ portfolio, reported same-store sales growth of 2.1%. More

Space infrastructure company Redwire reported second-quarter results Monday.
“Our outstanding commercial and operational improvement continued in the second quarter of 2023, leading to record financial performance on both a sequential and year-over-year basis,” Redwire Chief Financial Officer Jonathan Baliff said in a statement.
It also reaffirmed full-year revenue guidance, as it expects to bring in between $220 million and $250 million in 2023.

A Redwire Corporation banner is displayed at the New York Stock Exchange, Sept. 8, 2021.
Source: NYSE

Space infrastructure company Redwire said Monday that it nearly erased its net losses during the second quarter and further grew its contract backlog.
Redwire brought in $60.1 million in second-quarter revenue, up 64% from the same period a year ago. Its backlog of contracted orders increased nearly 70% year over year, to $272.8 million from $162.1 million a year prior.

The company trimmed its net loss to $5.5 million, dropping the amount 93% from $77 million in the quarter a year ago.
“Our outstanding commercial and operational improvement continued in the second quarter of 2023, leading to record financial performance on both a sequential and year-over-year basis,” Redwire Chief Financial Officer Jonathan Baliff said in a statement.
Redwire stock rose as much as 8% in after-hours trading from its close at $3.43 a share. Shares of Redwire have climbed more than 70% this year.

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The company also reaffirmed full-year revenue guidance, saying it expects to bring in between $220 million and $250 million in 2023.
The company had $36.2 million in available liquidity at the end of the quarter, which was a split mix of cash and borrowing capacity. More

Paramount Global reached an agreement to sell book publisher Simon & Schuster to private equity firm KKR for $1.62 billion.
The media company announced the deal after it reported second-quarter earnings on Monday.
Paramount’s overall revenue fell 2% to $7.6 billion, while the TV segment was dragged down by lower advertising revenue.

The publishing offices of Simon and Schuster in New York.
Amy T. Zielinski | Newscast | Universal Images Group | Getty Images

Paramount Global agreed to sell book publisher Simon & Schuster to private equity giant KKR for $1.62 billion, the media company said Monday as it reported earnings.
KKR’s entry into the book publishing space comes months after Paramount scrapped its initial agreement to sell Simon & Schuster to rival Penguin Random House — which was valued at $2.2 billion — after a federal judge rejected the merger and it raised red flags with the government.

Paramount’s stock was up nearly 4% in after-hours trading.
Paramount executives said during Monday’s earnings call that the proceeds of the Simon & Schuster sale would be used in the company’s ongoing effort to pay down debt.
The $200 million termination fee Paramount received from Penguin when that deal was scrapped, along with the money saved when the company cut its dividend, will also go toward lowering leverage, CFO Naveen Chopra said Monday.
Paramount has also been considering offloading a majority stake in BET Media Group, the owner of the BET cable network and studio, VH1 and the streaming service BET+, CNBC previously reported. Paramount CEO Bob Bakish said on Monday’s call that he wouldn’t comment on any specific moves, but said the company was open to divesting, acquiring and partnering to drive shareholder value.
Paramount reported revenue of $7.62 billion for the quarter, down about 2% year-over-year, as the company’s TV segment was once again dragged down by lower advertising revenue.

For the quarter ended June 30, Paramount reported a net loss of $299 million, or 48 cents a share, compared with earnings of $419 million, or 62 cents per share, in the same period last year.
Media companies have been grappling with a soft advertising market, particularly affecting the traditional TV business.
Advertising revenue in the TV segment fell 10%. Revenue in the TV business revenue overall dropped 2% to $5.16 billion.
Executives said Monday that the advertising revenue on traditional TV during the third quarter would be similar to the first half of the year, but they expect it to improve during the fourth quarter. Advertising has been weak as businesses worry about the prospect of a recession.

In this photo illustration, Paramount+ (Paramount Plus) logo is seen on a smartphone against its website in the background.
Pavlo Gonchar | SOPA Images | LightRocket | Getty Images

Advertising revenue on digital platforms like Paramount+ and the free, ad-supported Pluto, is expected to grow, however. Media companies have been leaning on advertising to reach profitability for their streaming businesses as subscriber growth has stagnated.
Advertising revenue for the streaming business rose 21%.
Paramount said its streaming segment continued to grow. Paramount+ had about 61 million subscribers by the end of the quarter, and subscription revenue grew more than 47% to $1.22 billion.
Paramount+ recently combined with Showtime’s streaming app, and increased its prices.
The price increase is driving average revenue per user and overall streaming revenue, and the company will fully see the benefits of the change next year, Chopra said Monday.
Raising prices, in addition to adding ad-supported tiers, has allowed media companies to push streaming businesses toward profitability. Chopra noted pricing and tier changes will also roll out internationally, and the company believes that it has room to raise prices over time due to its strong portfolio of content.
Meanwhile, revenue for Paramount’s film business fell 39% to $831 million, since last year the period included the release of “Top Gun: Maverick,” the highest grossing domestic release in 2022. More