Breaking News
May 29, 2024
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Marathon Oil jumped 8.3% to $28.64 after the company agreed to be acquired by ConocoPhillips for $17.1 billion and assume $5.4 billion in debt.
Marathon Oil shareholders will receive 0.2550 shares of ConocoPhillips common stock for each share of Marathon Oil common stock, representing a 14.7% premium to the closing share price of Marathon Oil on May 28, 2024, and a 16.0% premium to the prior 10-day volume-weighted average price.
The deal is expected to be immediately attractive to ConocoPhillips shareholders.
After the transaction, the third-largest U.S. oil company plans to increase its dividend by 34% to 78 cents per share starting in the fourth quarter of 2024.
Upon closing of the transaction, ConocoPhillips expects share buybacks to be over $20 billion in the first three years, with over $7 billion in the first full year, at recent commodity prices.
The oil industry has experienced a wave of transactions in recent months. Exxon Mobil agreed to acquire Pioneer Natural Resources for $60 billion, and Hess' shareholders approved the merger of the company with Chevron.
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Dick's Sporting Goods jumped 10.2% to $214.75 after the specialty retailer reported better-than-expected quarterly earnings and comparable sales rose 5.3%.
Increase in customer visits, more customer transactions, and a larger average ticket size drove sales higher.
The specialty retailer said revenue in the quarter ending on May 4 rose 6% to $3.02 billion from $2.84 billion, net income fell to $275 million from $303 million, and diluted earnings per share eased to $3.30 from $3.40 a year ago.
The retailer estimated full-year earnings per share to range between $13.35 and $13.75, higher than the previous estimate between $12.85 and $13.25. -
Abercrombie & Fitch soared 10.4% to $170.59 after the company reported record first-quarter sales.
Revenue in the quarter ending on May 4 rose 22.1% to $1.02 billion, driven by an Abercrombie sales increase of 31.1% to $571.1 million and Hollister sales growth of 12.3% to $449.2 million.
Net income in the quarter advanced to $113.9 million from $16.6 million, and diluted earnings per share rose to $2.14 from 32 cents a year ago, respectively. -
Cava Group dropped 8.5% to $75.50 after the salad restaurant chain reported better-than-expected quarterly results.
The stock declined after the Mediterranean fast-casual restaurant chain operator reported a decline in customer traffic.
Revenue increased 30.3% to $256.3 million, driven by a 2.3% increase in same-store sales. The sales increase was also driven by a 3.5% increase in menu prices, offset by a 1.2% decrease in store traffic.
Net income swung to a profit of $14.0 million from a loss of $2.1 million, and diluted earnings per share were 12 cents compared to a loss of $1.30 a year ago.
The company estimated new store openings between 50 and 54 from the previous estimate between 48 and 52, and the same store sales growth range between 4.5% and 6.5% from the previous estimate between 3.0% and 5.0%. -
American Airlines Group declined 14.5% to $11.47 after the company said in a regulatory filing that it plans to slow its capacity growth in the second half and that its Chief Commercial Officer, Vasu Raja, will depart the airline in June.
The company lowered its adjusted operating margin guidance by 1 percentage point to between 8.5% and 10.5% from the previous estimate of between 9.5% and 10.5%.
The airline also lowered its fiscal second-quarter adjusted earnings per share to between $1.0 and $1.15 from the previous estimate of between $1.15 and $1.45.
The airline said its capacity growth in the second quarter will slow to 3.5% from 8.5% in the first half of fiscal 2024. -
Chewy jumped 6.5% to 18.0 after the online pet food store reported better-than-expected fiscal first quarterly results.
Revenue in the fiscal first quarter increased to $2.9 billion from $2.8 billion, net income to $67.3 million from $22.8 million, and diluted earnings per share advanced to 15 cents from 5 cents a year ago.
Chewy also announced today that its board has authorized a share repurchase program of up to $500 million of its Class A and/or Class B common stock.
The company's active customer base in the quarter edged slightly lower to 20.0 million from 20.4 million a year ago, and net sales per active customer increased to $562 from $513 a year ago.
The company estimated net sales in the fiscal second quarter to range between $2.84 billion and $2.86 billion, an increase of between 2% and 3% from a year ago.
The company estimated fiscal year 2024 sales to range between $11.6 billion and $11.8 billion, an increase of between 4% and 6% from the previous year. -
Target Corp. declined 8.8% to $142.10 after the retailer reported weaker-than-expected earnings and a decline in sales driven by weakening growth trends in discretionary item sales.
Consumers limit their purchases of groceries and discretionary items like apparel and home decor.
Moreover, shoppers are chasing discounts, and relatively high-priced grocery items sold at Target still face competition from discount stores like Walmart, Aldi, Lidl, and other regional discount chains.
Target has been struggling to convince customers to spend more, as about 20% of its total sales are groceries, unlike 60% of Walmart's sales.
Total revenues declined 3.1% to $24.5 billion from $25.3 billion, net income dropped 0.8% to $942 million from $980 million, and diluted earnings per share fell to $2.03 from $2.05 a year ago.
Comparable sales declined 3.7% in the first quarter, reflecting a comparable store sales decline of 4.8%, partially offset by a comparable digital sales increase of 1.4%.
For the second quarter and for the full year, the company anticipated comparable sales to increase between zero and 2%.
For the full year, the company reiterated its adjusted earnings per share outlook to be between $8.60 and $9.60. -
Urban Outfitters rose 4.2% to $43.0 after the apparel retailer reported better-than-expected sales and earnings in its latest quarter.
Comparable retail sales increased 4.6%, driven by high single-digit positive sales growth in online sales and low single-digit positive growth in retail store sales.
Revenue in the first quarter increased 7.6% to record $1.2 billion from $1.11 billion, net income advanced to $61.76 million from $52.8 million, and diluted earnings per share rose to 65 cents from 56 cents a year ago.
The company did not purchase its shares in the first quarter ending in April 2024 and in the year ending in January 2024, and 19.2 million of the authorized 20.0 million shares are still available under its stock repurchase program. -
Toll Brothers decreased 0.5% to $129.50 after the luxury home builder's quarterly results surpassed market expectations and the company raised its full-year outlook.
Total fiscal second quarter revenue increased to $2.8 billion from $2.5 billion, net income rose to $481.6 million from $320.2 million, and diluted earnings per share advanced to $4.55 from $2.85 a year ago.
At the end of the fiscal second quarter in April, the backlog value of homes declined 12% to $7.4 billion, and the backlog of homes fell 6% to 7,093.
The company raised its estimate of home deliveries in the fiscal third quarter to 2,850 from 2,750 and in the fiscal year to 10,800 from 10,400.
In the quarter, Toll Brothers repurchased approximately 1.5 million shares at an average price of $120.60 per share, for a total purchase price of approximately $181.2 million.
On March 12, the company also hiked its cash dividend by 10% to 23 cents per share, which was paid on April 19 to shareholders on record on April 5. -
Analog Devices increased 5.4% to $228.32 after the company reported better-than-expected quarterly results in the fiscal second quarter ending in April.
Revenue in the quarter decreased 34% to $2.2 billion from $3.3 billion, net income decreased to $302.2 million from $977.6 million, and diluted earnings per share fell to 61 cents from $1.92 a year ago.
The company's board of directors declared a quarterly cash dividend of 92 cents per share payable on June 17 to shareholders of record at the close of June 4.
The company estimated fiscal third quarter revenue of $2.27 billion with a band of $100 million, an increase of 20.1% from a year ago.
The company also estimated earnings per share of 70 cents with a band of 10 cents and adjusted earnings per share of $1.50 with a band of 10 cents.
May 22, 2024