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Nov 29, 2023
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General Motors jumped 8.5% to $31.35 after the vehicle maker announced a $10 billion stock buyback, raised its dividend, and reinstated its annual outlook.
The company estimated net income attributable to stockholders between $9.1 billion and $9.7 billion, compared to the previous outlook of $9.3 billion and $10.7 billion.
Diluted earnings per share in the $6.52 to $7.02 range, including the estimated impact of the accelerated stock repurchase, compared to the previous outlook of $6.54 to $7.54
The vehicle maker said it plans to increase its dividend by 33%, or 3 cents per quarter, to 12 cents, beginning with the declaration in January 2024.
GM had about 1.37 billion outstanding shares prior to the announcement of the accelerated stock repurchase program. -
Foot Locker jumped 8.5% to $25.85 after the specialty athletic retailer reported better-than-expected quarterly results.
Revenue in the fiscal third quarter ending in October declined 8.6% to $1.99 billion from $2.17 billion, and comparable store sales fell 8.0%.
The company attributed the decline in sales to "ongoing consumer softness," and the closure of Champ stores negatively impacted same-store sales by 3 percentage points.
Net income in the quarter decreased to $28 million from $96 million, and diluted earnings per share dropped to 30 cents from $1.01 a year ago.
The retailer tightened its full-year revenue growth estimate to between 8.0% and 8.5% from the previous guidance between 8.0% and 9.0%, and comparable sales growth to range between 8.0% and 8.5% from 8.0% to 9.0%.
The company entered into a long-term licensing agreement with two retailers in India and will commence sales operations in 2024.
During the third quarter, the company paid a quarterly dividend of $0.40 per share for a total of $38 million and did not repurchase any shares. -
Petco Health and Wellness Company plunged 16.7% to $3.20 after the specialty retailer reported weaker-than-expected quarterly earnings.
Revenue in the fiscal third quarter ending in October declined 0.5% to $1.49 billion from $1.50 billion, and same-store sales were flat from a year ago but rose 4.1% from two years ago.
The company swung to a net loss of $1.2 billion from a profit of $19 million, and diluted earnings per share dropped to a loss of $4.63 from a profit of 7 cents a year ago.
During the quarter, Petco recorded a $1.2 billion non-cash goodwill impairment charge associated with goodwill originally recorded in fiscal 2015, due to the decline in the company's stock price.
The company reiterated its 2023 revenue guidance to between $6.15 billion and $6.275 billion, adjusted earnings per share to 8 cents from the previous estimate between 24 cents and 30 cents, and confirmed its capital expenditure between $215 million and $225 million. -
NetApp soared 10.3% to $86.11 after the intelligent data infrastructure company reported better-than-expected quarterly results.
Revenue in the fiscal third quarter ending in October decreased 6% to $1.56 billion from $1.66 billion, and billings declined 9% to $1.45 billion from $1.60 billion a year ago.
Net income plunged to $233 million from $750 million, and diluted earnings per share dropped to $1.10 from $3.41 a year ago.
During the quarter, the company returned $403 million to stockholders through stock repurchases and cash dividends.
For the fiscal year 2024 third quarter, the company estimated revenue in the range of $1.51 billion and $1.67 billion and diluted earnings per share in the range of $1.17 billion and $1.27 billion.
For the full year 2024, the cloud infrastructure company estimated revenue to decline 2% from a year ago, gross margin of 70%, and earnings per share between $4.15 and $4.35 a share.
The company also declared a dividend of 50 cents per share to be paid on January 24, 2024, to shareholders on record on January 5, 2024. -
Phillips 66 jumped 3.7% to $122.33 after the activist investor Elliott Investment Management disclosed a stake of $1 billion in the energy company in the hopes of a potential gain of 75%.
Elliott is seeking two board seat and plans to improve oil refiner and retailer's performance, according to the letter sent by the activist investor to the company's board.
Elliott is targeting operating earnings of $14 billion by 2025 by focusing on improving company's refining operations. -
Gross domestic product rose at a faster pace in the third quarter after the U.S. Bureau of Economic Analysis revised its previous estimate.
Real gross domestic product increased at an annual pace of 5.2%, higher than 4.9% in the preliminary estimate, and accelerated from a 2.1% rise in the second quarter.
The GDP increase was the fastest since the fourth quarter of 2021, and the increase in the third quarter primarily reflected a higher increase in government spending, inventory investment, and nonresidential investment, but consumer spending growth was revised lower. -
Zscaler decreased 6.1% to $179.50 after the cyber-security company reported quarterly results and offered a muted outlook.
Revenue in the fiscal first quarter ending in October rose 40% to $496.7 million from $355.5 million; net loss shrank to $33.5 million from $68.1 million; and net loss per share fell to 23 cents from 48 cents a year ago.
Cash provided by operations was $260.8 million, or 53% of revenue, compared to $128.5 million, or 36% of revenue, in the first quarter of fiscal 2023.
Free cash flow was $224.7 million, or 45% of revenue, compared to $95.6 million, or 27% of revenue, in the first quarter of fiscal 2023.
The company estimated second-quarter fiscal 2024 revenue to range between $505 million and $507 million and non-GAPP income from operations between $84 million and $86 million.
For the full-year fiscal 2024, the company estimated revenue between $2.09 billion and $2.10 billion, non-GAAP operating income between $360 million and $365 million, and non-GAAP diluted earnings per share between $2.45 and $2.48 based on 181 fully diluted outstanding shares. -
Nvidia Corp. declined 1.7% to $490.75 after the company reported a surge in quarterly earnings and sales.
Revenue in the third quarter increased 206% to $18.1 billion from $5.9 billion, net income soared 12-fold to $9.2 billion from $680 million, and diluted earnings per share rose to $3.71 from 27 cents a year ago.
The advanced chipmaker estimated revenue in the fourth quarter to be $20 billion, with a band of 2%, a gross margin of 74.5%, and a non-GAAP gross margin of 75.5%.
The company continues to benefit as businesses and the government transition from general-purpose computing to accelerated computing and generative AI.
"“Large language model startups, consumer internet companies, and global cloud service providers were the first movers, and the next waves are starting to build.
Nations and regional CSPs are investing in AI clouds to serve local demand, enterprise software companies are adding AI copilots and assistants to their platforms, and enterprises are creating custom AI to automate the world’s largest industries," said founder and CEO of Jensen Huang in a statement to investors. -
Burlington Stores soared 20% to $165.06 after the discount retailer reported strong quarterly results, and comparable store sales rose 6% from a year ago.
Revenue in the third quarter increased 12% to $2.28 billion from $2.04 billion, net income advanced to $48.55 million from $16.78 million, and diluted earnings per share rose to 75 cents from 26 cents a year ago.
Total merchandise inventories declined 8% to $1.32 billion from $1.45 billion, but store-level inventories rose 2%.
During the third quarter, the company repurchased 348,948 shares of its common stock for $52 million, and $78 million were still available in the stock repurchase plan.
For the fiscal fourth quarter, the retailer is estimating total sales to increase between 5% and 7% and comparable sales to fall in the range between a decline of 2% and zero.
The company estimated total sales in fiscal year 2024 to increase 11%, including a 2% increase because of the 53rd week, and adjusted earnings per share in the range of $5.52 and $5.67, including 20 cents of expected incremental expenses related to the recently acquired Bed Bath & Beyond leases. -
Dick's Sporting Goods increased 2.2% to $121.59 after the specialty retailer reported quarterly results.
Comparable store sales rose 1.7% on top of a 6.5% increase in the quarter a year ago.
Revenue in the third quarter increased 2.8% to $3.04 billion from $2.95 billion, net income decreased 12% to $201 million from $228 million, and diluted earnings per share fell to $2.39 from $2.45 a year ago.
The company repurchased 3.5 million shares for $388 million in the third quarter.
The company lifted its 2023 comparable store sales outlook to a range of 0.5% to 2.0%, up from the previously estimated flat to 2.0% increase.
The retailer also lifted its 2023 diluted earnings per share outlook to $11.45 from $12.05 and raised its full-year non-GAAP outlook to $12.0 to $12.60, up from the previous estimate between $11.50 and $12.30.
Nov 28, 2023
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