HomeNewsFriday’s market recap: Stocks in green after Q3 earnings, WHO labels COVID-19 vaccine handling a scandal, and JNJ splitting consumer products division

Friday’s market recap: Stocks in green after Q3 earnings, WHO labels COVID-19 vaccine handling a scandal, and JNJ splitting consumer products division

Hassan Maishera

  • Flower Foods, Sundial Growers, and Array Technologies stocks up after Q3 financial results
  • WHO says COVID-19 vaccines handling has been scandalous
  • Johnson & Johnson is splitting its business operations

Various US stocks surged on Friday after announcing solid quarterly results for the quarter ending September 30, 2021.

Flower Foods up 4.2% on impressive Q3 2021 results

Flower Foods Inc. (NYSE: FLO) shares jumped 4.2% on Friday after the company reported its fiscal Q3 2021 financial results that topped analysts estimates. The company reported Q3 2021 non-GAAP earnings of $0.30 per share, topping analyst consensus estimates of $0.25. However Q3 2021 GAAP EPS came short of consensus estimates of $0.22 per share at $0.18 per share. In addition, Flower Foods reported 4.1% YoY revenue growth to $1.03 billion, beating estimates by $20 million.

Sundial missed Q3 revenue estimates 

Sundial Growers Inc. (NASDAQ: SNDL) shares also jumped 20% on Friday after the company reported its Q3 2021 earnings.  Although the company missed analysts’ revenue estimates by posting net revenue of $6.45 million, the shares benefitted from the announcement that Sundial will repurchase C$100 million worth of its stock. Analysts had expected revenue to be around $12.99 million.  Sundial Growers’ gross revenue of $11.02 million reflects a YoY drop of 29%.

Array Technologies expects contracts and orders to boost margin growth

Another stock that rose despite missing analysts’ estimates is Array Technologies Inc. (NASDAQ: ARRY) which jumped 20% on Friday. The trigger for the surge was the expansion of the Q3 order book to $1 billion, which is the highest in the history of Array Technologies. Additionally, the company management expects orders and contracts to boost margin growth to around 20% from 4.8% currently in 2H 2022.

COVID-19 vaccine distribution has been scandalous 

World Health Organisation (WHO) Director-General Tedros Adhanom Ghebreyesus called out the inequitable COVID-19 vaccines distribution calling it’s a scandal after Pfizer Inc. (NYSE: PFE) sought FDA’s approval for a booster shot in adults. Ghebreyesus said that booster shots are given six times more than primary shots in low-income nations daily, adding that this scandal should stop. WHO has been asking developed countries to pass surplus vaccines to low-income nations as it seeks to have around 40% of the population from low-income countries vaccinated.

Johnson & Johnson to split its operations 

Johnson & Johnson (NYSE: JNJ) shares jumped 1% on Friday after the company announced that it would separate its pharma and medical devices business from the consumer products division. The move seeks to create two independent publicly traded companies.  The separation of the business units will sheer of the company’s household products segments such as Listerine and Aveeno for the rapidly growing but riskier segment that manufactures and sells pharmaceutical products and medical devices.