Alan Schwartz says with strong balance sheets and PE off the table, companies are ready to return to M&A
Large corporations have strong balance sheets and are ready to return to the M&A market now that private equity investors have been sidelined by rising interest costs, Guggenheim Partners Chief Executive Alan said Tuesday. Schwartz, on CNBC's "Squawk Box."
"Now they're seeing the opportunity to come back, because they kept their balance sheets strong," the former Bear Stearns CEO said. "At the same time, the macro environment, especially geopolitical and all those other things, creates concerns in the boardroom about whether now is the time or waiting for some of these things."
Guggenheim advises many high-level executives and "what we're saying is that we saw a big drop in M&A activity, when the capital markets ground to a halt for many of the private deals, but now you're seeing a lot of, say , discussions and activities that are clearly starting to pick up from the corporate side that is seeing its chance to get in. But you know, how many of them will cross the line?
โScott Schnipper
Interactive Brokers and JB Hunt Are Among the Biggest Moving Stocks After the Bell
These are some of the companies that are taking the biggest steps in extended commerce:
- Interactive runner group โ Shares of the e-broker fell more than 4% in after-hours trading. Interactive Brokers reported third-quarter adjusted earnings of $1.55 per share on adjusted revenue of $1.14 billion.
- JB Hunt Transportation Services โ Transportation and logistics stocks lost 3.6% after reporting third-quarter results that missed Wall Street expectations.
- Omnicom Group โ Shares of the marketing company fell 1.4%, even as the company narrowly beat analysts' expectations in its latest quarterly report.
Read the full list of companies moving here.
โSamantha Subin
United Airlines falls under soft guidance
United Airlines Stock fell almost 5% in extended trade after he warned that warning High fuel costs and suspension of flights to Tel Aviv. in the midst of the war between Israel and Hamas would affect profits for the current quarter.
The company said it expects adjusted earnings to range between $1.50 and $1.80 per share, versus the $2.06 per share expected by analysts surveyed by LSEG, formerly known as Refinitiv.
Despite the off-schedule moves, United Airlines beat Wall Street expectations for the latest quarter. The airline reported adjusted earnings of $3.65 per share on $14.48 billion in revenue. That beat analysts' EPS of $3.35 and $14.44 billion.
United Airlines falls due to weak guidance
-Samantha Subin, Leslie Josephs
