Movers: First Republic Bank, JP Morgan, Global Payments, Norwegian Cruise, ON Semiconductor, SoFi Technologies

Scott Peters
01 May, 2023
New York City

First Republic Bank dropped 34% to $2.30 after the Federal Deposit Insurance Corporation seized the ailing bank. 

JP Morgan agreed to acquire all deposits and a "substantial majority" of the seized bank after the U.S. government agency failed to convince rival banks to acquire the troubled lender. 

First Republic marks the third bank failure of an American bank since March. 

The acquisition includes approximately $173 billion of loans and $30 billion of securities and assumption of approximately $92 billion of deposits, including $30 billion of large bank deposits, which will be repaid post-close or eliminated in consolidation.  

FDIC will provide loss share agreements covering acquired single-family residential mortgage loans and commercial loans, as well as $50 billion of five-year, fixed-rate term financing. 

JP Morgan Chase increased 4.4% to $144.30. 

Regional banks traded volatile on the back of seizure of First Republic Bank. 

Zions Bancorp fell 2.3% to $27.20, Western Alliance Bancorp declined 0.4% to $36.97 and PacWest plunged 7.1% to $9.44. 

Norwegian Cruise Line Holdings Ltd advanced 1.5% to $13.55 after the company reported its latest quarterly results. 

Revenue in the first quarter soared to $1.8 billion from $521.9 million and the net loss shrank to $159.2 million from $982.7 million and diluted loss per share fell to 38 cents from $2.35 a year ago. 

Gross cruise costs per capacity day was approximately $298 in the quarter and $301 in constant currency. 

Adjusted net cruise costs excluding fuel per capacity day in constant currency was approximately $161, a 14% decrease compared to the second half of 2022 as the company stepped up its cost containment efforts. 

ON Semiconductor Corp increased 7% to $76.96 after the company reported its latest quarterly results. 

Revenue increased 1% to $1.96 billion and net income attributable to shareholders decreased to $461,7 million from $530.2 million and diluted earnings per share fell to $1.03 from $1.19 a year ago. 

The company forecasted second quarter revenue between $1,975 million to $2,075 million and gross margin between and gross margin between 45.4% and 47.4% diluted earnings per share between $1.08 and $1.22 based on 449  million outstanding shares. 

SoFi Technologies Inc declined 9.9% to $5.61 after the student loan and auto loan refinancing company reported its quarterly results. 

Revenue in the first quarter increased 43% to $472.2 million from $330.3 million and net loss shrank 69% to $34.4 million from $110.4 million and diluted loss per share fell to 5 cents from 14 cents a year ago. 

The company said higher interest rates will impact its ability to refinance loans. 

The company added 433,000 new members in the quarter and increased total members to 5.7 million by the end of the quarter, an increase of 1.8 million from a year ago or 46% from a year ago. 

Total deposits surged by a record $2.7 billion, up 37% during the quarter to $10 billion at quarter-end, and 97% of the deposits are insured under the new $2 million FDIC insurance program.

Global Payments Inc declined 7.7% to $104.0 after the company released its quarterly results and announced the appointment of a new chief executive officer from June 1. 

Revenue in the first quarter increased 6.3% to $2.29 billion and the company swung to a net loss of $11.0 million from a profit of $244.7 million and diluted earnings per share to ($0.04) from 87 cents a year ago. 

Constant currency payment processing volume growth in the quarter was 10%, higher than 9% from the previous quarter but near the two-year low.