Intuitive Machines (LUNR) shares unravel as status of lunar lander remains unclear - update. (00:28) U.S. judge may block Paramount-Skydance (PARAA) (PARA) deal after shareholder suit alleges fiduciary breach. (01:21) HP Enterprise (HPE) provides weak outlook, reveals 'workforce reduction' program. (02:47)Episode transcripts seekingalpha.com/wsb.Show links: Biggest stock movers: AVGO, LUNR, and moreSpaceX's Starship explodes after launch again, debris disrupts Florida flightsFading worries over DOGE and Elon Musk, Wedbush goes all-in on TeslaTrump establishes Strategic Bitcoin ReserveCryptocurrency may likely remain under pressure over near term - JPMSign up for our daily newsletter here and for full access to analyst ratings, stock quant scores, dividend grades, subscribe to Seeking Alpha Premium at seekingalpha.com/subscriptions.
Full Episode
Welcome to Seeking Alpha's Wall Street Breakfast, where we cover the top news for investors every morning. Good morning. Today is Friday, March 7th. I'm Julie Morgan. Another moon mission, another landing issue. Intuitive Machines is feeling the pressure. A judge agrees to fast-track a lawsuit challenging Paramount's $8 billion Skydance deal. And HPE disappoints.
Intuitive Machines lost ground amid very volatile trading. The company believes the second lunar lander, Athena, may not be upright, repeating a similar issue from last year when the first probe landed lopsided on the moon. Intuitive Machines' Athena probe targeted a lunar landing at around 12.30 p.m. ET on Thursday, carrying NASA technology demonstrations and science investigations.
The aircraft does have a signal and the company's CEO said they believe the lander is in the vicinity of the intended landing site. This setback has dampened optimism about intuitive machine space exploration capabilities, fueling uncertainty about its valuation and future prospects. Shares closed 20% lower on Thursday and continues to slide in pre-market trading with a loss of 34%. A U.S.
judge in Delaware is willing to consider allegations brought against Paramount Global in a lawsuit. The lawsuit says the $8 billion sale to David Ellison's Skydance Media should be blocked from closing because it shortchanges public shareholders.
Reuters reported on Thursday, citing a court filing that an investor group called Project Rise Partners submitted a proposal in January valued at $13.5 billion to buy Paramount, but that was rejected by a Paramount special committee. In response, pension funds for New York City employees that own Paramount stock filed a lawsuit alleging the company's special committee
On Thursday, Chancellor Kathleen McCormick agreed to expedite the pension fund's lawsuit, but declined to issue a temporary restraining order to block the deal because it did not appear the deal was about to close. The closing of the Skydance deal is subject to the FCC's approval, and according to McCormick's ruling, the earliest the deal can close is March 20th.
The merger has an April 7th end date, although it can be extended twice by 90 days if the FCC does not give clearance for the merger to close. Paramount said in its latest earnings report that it expects the deal with Skydance to close in the first half of 2025. Shares of Hewlett Packard Enterprise sank after the company reported its first quarter fiscal 2025 financial results and guidance.
The outlook fell well below market expectations and HPE also revealed a cost reduction program that includes a workforce reduction by as many as 3,000. For the quarter ended January 31st of 2025, HPE reported adjusted earnings per share of 49 cents versus the consensus estimate of 50 cents. Revenue for the quarter totaled $7.9 billion, which was more than the estimate of $7.81 billion.
For the entirety of fiscal 2025, the company said it expects adjusted EPS to have a midpoint of $1.80 versus the consensus of $2.12. HPE revealed that its board of directors approved a cost reduction program that plans to deliver $350 million in gross savings by fiscal year 2027 through reductions in the company's workforce.
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