LLY - Wall Street Breakfast Podcast: Actors Studios Reach Tentative Deal

2023-11-09 06:42:09 ET

Summary

• Actors and studios have reached a tentative deal to end a strike that lasted almost four months.
• AMC Entertainment reports a surge in revenue in Q3, boosted by the success of summer releases Barbie and Oppenheimer.
• Eli Lilly extends expiration of tender offer to acquire Point Biopharma.

Listen below or on the go on Apple Podcasts and Spotify

Actors, studios reach tentative agreement to end strike - reports. (00:26) 'Barbenheimer' boosts AMC Q3 results, but concerns remain over debt, Q4 box office. (01:41) Eli Lilly ( LLY ) extends expiration of tender offer to acquire Point Biopharma (PNT). (03:15)

This is an abridged transcript of the podcast.

The actors and studios have reached a tentative agreement to end a strike that lasted almost four months.

The actors' strike, which lasted 118 days, ended at midnight.

The next step is for the Screen Actors Guild-American Federation of Television and Radio Artists board to meet on Friday to review the final deal. Then it needs to be ratified by the members.

According to a statement on the SAG-AFTRA website, the contract is “valued at over one billion dollars” and they received “unprecedented provisions for consent and compensation that will protect members from the threat of AI.”

However, the full details of the agreement will not be provided until it has been reviewed by the board.

Talks between SAG-AFTRA and the Alliance of Motion Picture and Television Producers restarted in recent days after ending last month.

Over the weekend, the studios presented their last, best and final offer.

The end of the actors' strike comes after the writers and studios reached an agreement in late September to end a strike between the two sides.

AMPTP represents major studios including Amazon ( AMZN ), Apple ( AAPL ), Disney (NYSE: DIS ), NBCUniversal ( CMCSA ), Netflix (NASDAQ: NFLX ), Paramount (NASDAQ: PARA ), Sony ( SONY ), and Warner Bros. Discovery (NASDAQ: WBD ).

AMC Entertainment (NYSE: AMC ) on Wednesday reported a quarterly surge in revenue and a narrower loss .

The company’s results were buoyed by the massive success of summer releases Barbie and Oppenheimer.

The world's largest cinema chain delivered a Q3 adjusted loss per share of 9 cents, compared to a loss of nearly $2/share a year ago. Revenue jumped 45.2% Y/Y to $1.41B, topping the consensus figure by $150M.

AMC said that both revenue and adjusted EBITDA were the highest for Q3 in its history and were above pre-pandemic figures from 2019.

The 2023 domestic box office received a huge shot in the arm due to the July 21 double-release of Barbie and Oppenheimer. The former has grossed more than $1.44B worldwide while the latter became the second-highest grossing R-rated film ever with a draw of nearly $949M.

Concerns over AMC's substantial debt along with a lack of a major push in terms of movies for Q4 has been weighing on investor sentiment.

Looking ahead to Q4, AMC touted the success of Taylor Swift’s record-breaking concert film as well as the upcoming release of Beyoncé's concert-film.

But Seeking Alpha contributor Donn Bailey in late-October in an article titled "AMC Entertainment: Taylor Is No Barbie" said that the company's financial position was "unlikely to be significantly impacted by the Taylor Swift film, and Q4 box office numbers are concerning."

See how AMC performed in charts .

Eli Lilly (NYSE: LLY ) on Wednesday said it had extended its tender offer to acquire Point Biopharma Global (NASDAQ: PNT ).

The move comes just days after a major shareholder of PNT opposed their $1.4B deal.

LLY in early October said it had agreed to acquire cancer drug developer PNT for $12.50 per share in cash. PNT stock has since gained and closed at $13.02 on Wednesday.

"The tender offer, which was previously scheduled to expire at one minute past 11:59 p.m., Eastern time, on Nov. 9, 2023, has been extended until 5:00 p.m., Eastern time, on Nov. 16, 2023," Eli Lilly ( LLY ) said in Wednesday's statement .

Two days ago, Biotechnology Value Fund, which has a 16.5% stake in Point Biopharma ( PNT ), said that it was opposed to the deal.

The fund noted that closing the acquisition at the proposed $12.50/share price before PNT's imminent results from a prostate cancer study was "not in the best interest" of shareholders.

Other articles to look out for on Seeking Alpha:

Disney earnings call: Focusing streaming, paving ESPN's future

B&G Foods sells Green Giant vegetable product line to Seneca Foods

GM's Cruise recalls 950 driverless cars after production halt

Wall Street's major averages on Wednesday ended mixed, as a decline in energy and utility stocks was offset by a rise in real estate and technology.

The Nasdaq ( COMP.IND ) and the S&P 500 ( SP500 ) each extended their longest daily winning streak since November 2021. The former rose 0.08%, while the latter added 0.10%. The Dow ( DJI ) posted its first negative finish in November, falling 0.12%.

Of the 11 S&P sectors, six closed in positive territory, led by Tech and Real Estate. Energy and Utilities topped the losers.

Treasury yields extended a decline from Tuesday. The 10-year yield ( US10Y ) was down 6 basis points to 4.52%. The 2-year yield ( US2Y ) was up 2 basis points to 4.94%.

Now let’s take a look at the markets as of 6 am. Ahead of the opening bell today, Dow, S&P and Nasdaq futures are mixed. The Dow is up 0.2%, the S&P 500 is up 0.2% and the Nasdaq is flat. Crude oil is up 0.7% at less than $76 per barrel.

In the world markets, the FTSE 100 is up 0.2% and the DAX is up 0.4%.

The biggest movers for the day premarket: Bloom Energy (NYSE: BE ) is up 18% after outperforming market expectations in Q3 results and reaffirming the FY2023 outlook. And following mixed Q3 results, Topgolf Callaway Brands (NYSE: MODG ) is down nearly 20% after providing FY2023 guidance that fell below expectations .

On today’s economic calendar:

• 9:30 am the Fed’s Raphael Bostic will speak at the Central Bank Business Survey Conference.

• 11 am the Fed’s Thomas Barkin will speak virtually on the Outlook for the U.S economy and Fed policy in a market news international webinar.

• 2 pm Fed chair Jerome Powell will participate in a panel discussion at a research conference in Washington D.C.

For further details see: