Updated Oct 06, 2023, 2:51 am EDT / Original Oct 06, 2023, 1:15 am EDT
Consumer-staples stocks have gotten hit hard in recent weeks, and hasn’t escaped the carnage. With the steady-Eddie beverage and snack giant set to report earnings on Oct. 10, its stock could be ready to pop.
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Shares of Rivian Automotive Inc. slid in the extended session Wednesday after the EV maker issued preliminary quarterly sales estimates that were on par with Wall Street’s forecasts and announced plans to offer $1.5 billion worth of convertible notes.
Rivian
RIVN,
in a filing, gave a preliminary third-quarter sales estimate of between $1.29 billion and $1.33 billion. Analysts polled by FactSet expected sales of $1.31 billion. The company estimated it had cash, cash equivalents and short-term investments of $9.1 billion as of Sept. 30.
Rivian also said it plans to offer, subject to market and other conditions, $1.5 billion worth of “green” convertible senior notes due in 2030. That would be in a private offering to “qualified institutional buyers,” Rivian said.
The plan would give buyers the option to purchase up to an additional $225 million in notes. The notes will be senior, unsecured obligations of Rivian. Noteholders will have the right to convert their notes in certain circumstances and during specified periods, the company said.
Shares fell 8% after hours.
Rivian stock ended the regular trading day up 9.2%, and so far this year has gained around 28%, which compares with an advance of around 10% for the S&P 500 index
SPX,
By Michael Susin
Boohoo Group has downgraded its fiscal 2024 revenue targets on slower-than-expected sales volume recovery, and reported a widened pretax loss for the first half.
The London-listed online fashion retailer said Tuesday that it expects revenue for the year ending Feb. 28 to decline by 12% to 17%, compared with previous guidance of flat growth or a fall of up to 5%.
Despite the revenue slip, the company continues to expect adjusted earnings before interest, taxes, depreciation and amortization–which strips out exceptional and other one-off items–margins to be between 4% and 4.5%, given the progress made on gross margin and cost control.
Boohoo backed its adjusted Ebitda target of between 58 million pounds to 70 million pounds ($70.1 million and $84.6 million), while capital expenditure is expected to be around GBP75 million.
The company also reported a pretax loss for the six months ended Aug. 31 of GBP26.4 million, compared with a loss of GBP15.2 million for the same period a year ago.
Revenue fell to GBP729.1 million from GBP882.4 million, with U.K. sales down 19% and international sales down 15%.
The drop was driven by a 10% revenue fall in core brands, consistent with guidance as the group targeted more profitable sales.
Boohoo added that inventory significantly reduced, down GBP94 million, or 35%, on year.
“Our confidence in the medium-term prospects for the group remains unchanged as we execute on our key priorities where we see a clear path to improved profitability and getting back to growth,” Chief Executive John Lyttle said.
Write to Michael Susin at michael.susin@wsj.com
Analysts at Citi on Thursday dialed down their expectations for Tesla Inc.’s third-quarter deliveries and profit, saying they based their new numbers on China sales, global registration data and an implied production pace for the EV maker.
Tesla
TSLA,
and General Motors Co.
GM,
are scheduled to report third-quarter vehicle sales next week, while Ford Motor Co.
F,
and a few others are slated to report September sales.
Earlier this week, a Deutsche Bank analyst warned that there was “meaningful downside risk” to current 2024 Tesla projections due to limited volume growth, and cut his price target on Tesla stock.
J.D. Power on Thursday estimated another double-digit gain for U.S. new-car sales in September. GM, Ford and Stellantis NV
STLA,
are facing a strike affecting some of its assembly plants and, in the case of GM and Stellantis, auto-parts distribution centers.
The Citi analysts, led by Itay Michaeli, said they trimmed their Tesla quarterly sales estimates to 450,000 vehicles, from a previous expectation of 468,500 vehicles.
See also: Tesla sued for racial discrimination, retaliation by EEOC
They lowered their forecast for adjusted per-share earnings to 75 cents in the quarter, from a prior estimate of an adjusted EPS of 81 cents for the quarter.
The Citi’s expectations compare with FactSet consensus of Tesla deliveries of 462,000 vehicles in the quarter, and consensus around an adjusted EPS of 79 cents for the quarter.
“We will revisit our model post the [third-quarter] delivery report,” the Citi analysts said. They kept the equivalent of a hold rating on the stock.
The update on the sales estimates was based on recent weekly China data “in part reflecting the Model 3 refresh transition,” as the compact sedan in some parts of the world is getting a minor update; the latest available global Tesla registration data; and their observations on production rate and “inventory discounting, with our estimates assuming some [quarter-on-quarter] de-stocking,” the analysts said.
Given Tesla’s production pace and the Model 3 changes, “we see a greater range of delivery outcomes vs. typical quarters,” they said.
Tesla shares have doubled so far this year, compared with gains of around 12% for the S&P 500 index
SPX.
By Michael Susin
ASOS said that fourth-quarter revenue slipped but cost-savings measures supported the group’s profitability, while earnings are expected to come in at the bottom end of its guidance.
The online fashion retailer said on Tuesday that revenue for the quarter ended Sept. 3 fell 12%, while revenue for the year dropped 10%.
The company said the fall was in line with the guidance given a weak performance in July and August amid a deterioration in the U.K. clothing market.
Despite the fall in sales, the fourth quarter is anticipated to be profitable. The company reported that around 300 million pounds ($366.3 million) of profit improvement and cost savings have now been realised, in line with the annual guidance.
Adjusted gross margin–which strips out exceptional and other one-off items– for the second half of fiscal 2023 rose by around 150 basis points, missing the guidance of above 200 basis points.
The company added that earnings before interest and taxes for the second half is anticipated to come in at the bottom of the guided range of GBP40 million to GBP60 million, with free cash inflow in second half now expected to be around GBP60 million.
Write to Michael Susin at michael.susin@wsj.com
With Cisco Systems Inc.’s pending acquisition of Splunk Inc., the networking giant is making another major step toward becoming a software company.
On Thursday, Cisco CSCO said it was buying Splunk SPLK in a deal valued at about $28 billion, or $157 a share in cash, for the cloud-security company. The match had been speculated about for years, and Cisco has been on a buying binge this year, as it seeks to grow with more security and software offerings.
“Together, we will become one of…
VinFast Auto Ltd. late Thursday reported a second-quarter loss of half a billion dollars, saying it delivered more than 9,000 electric vehicles globally for sales of about $315 million in the period.
Vietnamese EV maker VinFast VFS went public in August through a SPAC deal, and the stock more than tripled by the end of its first session, sending the company’s market valuation soaring to more than $200 billion.
VinFast’s…
H&M shares slumped Friday as the Swedish retail chain missed expectations for sales growth in a quarter in which it said it focused on profitability.
H&M stock
HM.B,
dropped 4% in early action, though it has rallied 47% this year.
In a brief statement, H&M said fiscal third-quarter sales in local currencies was “flattish,” missing analyst estimates for 5% sales growth. It said its goal of reaching a 10% operating margin next year “is going in the right direction” and that profitability and inventory levels have been priortized in the quarter.
Analysts at RBC said weather may have dampened sales, but that it also has become more expensive this season — for instance, pricing 10% below average in the U.K., versus 20% traditionally. Its publicly traded rivals — Inditex
ITX,
the Primark unit of Associated British Foods
ABF,
and Next
NXT,
— have each reported stronger sales growth.
The broader tone in European markets was positive, except for tech stocks, with ASM International
ASM,
shares losing 5% and ASML Holding
ASML,
down 2%.
The French CAC 40
FR:PX1
led the major regional indexes with a 1.3% rise, as the U.K. FTSE 100
UK:UKX
and German DAX
DX:DAX
also rose. Better-than-expected Chinese retail sales figures helped Paris-listed luxury plays.
Stellantis shares
STLAM,
fell 1% as the United Auto Workers began a strike at an Ohio plant, along with one plant each at fellow Big Three automakers Ford and General Motors.
By Maitane Sardon
Zara Owner Inditex on Wednesday reported first-half sales which beat market forecasts, thanks to a strong performance both online and in stores.
The Spanish fashion giant, which also owns Bershka, Massimo Dutti and Pull&Bear, said that net profit for the six months ended July 31 surged to 2.51 billion euros($2.70 billion), from EUR1.79 billion last year.
Sales came to EUR16.85 billion, topping the EUR14.85 billion it reported for the same period a year earlier. Analysts had forecast first-half sales of EUR16.68 billion, according to a poll of estimates compiled by FactSet.
Earnings before interest and taxes climbed to EUR3.16 billion in the first half from EUR2.43 billion, while earnings before interest, taxes, depreciation, and amortization increased to EUR4.66 billion from EUR4.03 billion.
The operating margin increased to 18.8% from 16.4%, while the gross margin was up at 58.2% Inditex said.
For the year, Inditex continues to expect a stable gross margin plus or minus 50 basis points.
Inditex’s results come as the company seeks to maintain its edge over rivals in a challenging business environment. On Tuesday, Primark owner AB Foods upped its forecast for 2023 and said its sugar and clothing-retail divisions should be even more profitable next year despite an arduous macroeconomic backdrop. Stockholm-based H&M Hennes & Mauritz is set to report sales on Friday.
Write to Maitane Sardon at maitane.sardon@wsj.com
Oracle Corp. shares dropped in extended trading Monday after the software company’s revenue forecast for the current quarter fell short of Wall Street expectations.
Oracle
ORCL,
shares, which had been down about 5% after hours when its earnings call started, dropped more than 9% after Oracle Chief Executive Safra Catz forecast its outlook for the quarter.
On the conference call with analysts, Catz forecast second-quarter earnings of $1.30 to $1.34 a share on revenue growth of 5% to 7%, or $12.89 billion to $13.13 billion.
Analysts surveyed by FactSet had estimated earnings of $1.34 a share on revenue of $13.28 billion.
Catz added that if “currency exchange rates remain the same as they are now,” currency should have a 2% positive effect on total revenue and a 3 cent-a-share positive effect on earnings.
Oracle reported fiscal first-quarter net income of $2.42 billion, or 86 cents a share, compared with $1.55 billion, or 56 cents a share, a year ago.
Adjusted earnings, which exclude stock-based compensation expenses and other items, were $1.19 a share, compared with $1.03 a share in the year-ago period.
Revenue rose to $12.45 billion from $11.45 billion in the year-ago quarter.
Analysts surveyed by FactSet had forecast earnings of $1.15 a share on revenue of $12.57 billion.
Oracle reported cloud services and license support revenue of $9.55 billion, while analysts, on average, had forecast $9.43 billion; and cloud license and on-premise license revenue of $809 million, while the Street expected $967 million.
Hardware revenue came in at $714 million, while analysts expected $748 million; and services revenue was $1.38 billion, while the Street expected $1.43 billion.
Oracle shares finished up 0.3% during Monday’s regular session to close at $126.71.
Oracle Corp. shares fell in the extended session Monday after the software company reported in-line revenue for the quarter, and earnings were slightly higher than expected.
Oracle
ORCL,
shares fell as much as 5% after hours, following a 0.3% rise in the regular session up to close at $126.71.
Oracle reported fiscal first-quarter net income of $2.42 billion, or 86 cents a share, compared with $1.55 billion, or 56 cents a share, a year ago.
Adjusted earnings, which exclude stock-based compensation expenses and other items, were $1.19 a share, compared with $1.03 a share in the year-ago period.
Revenue rose to $12.45 billion from $11.45 billion in the year-ago quarter.
Analysts surveyed by FactSet had forecast earnings of $1.15 a share on revenue of $12.45 billion.
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https://www.barrons.com/articles/amc-stock-price-all-time-low-e7512c35
Shares of GameStop Corp. rose in extended trading Wednesday after the videogame retailer and original meme stock reported second-quarter results that beat expectations, lifted by international sales gains and what the company described as “a significant software release.”
The company — which over the past few months has made some big leadership changes — reported a net loss of $2.8 million, or 1 cent a share, compared with $108.7 million, or 36 cents a share, in the same quarter last year. Revenue crept higher to $1.16 billion,…
Broadcom Inc. shares slipped 4.5% in the extended session Thursday after the chip and software company delivered a revenue forecast for the current quarter that failed to offer upside versus the consensus view.
The company reported fiscal third-quarter net income of $3.30 billion, or $7.74 a share, compared with $3.07 billion, or $7.15 a share, in the year-ago period.
After adjustments, Broadcom
AVGO,
earned $10.54 a share, compared with $9.73 a share in the year-ago quarter. Analysts tracked by FactSet were expecting $10.43 a share.
Revenue increased to $8.88 billion from $8.46 billion in the year-ago quarter, while analysts were modeling $8.85 billion.
See also: Dell’s stock soars as company easily beats on earnings
Chip sales rose 5% to $6.94 billion from the year-ago period, and infrastructure software sales also were up by 5%, to $1.94 billion. The FactSet consensus was for $6.97 billion in chip sales and $1.89 billion in software sales.
The latest results “were driven by demand for next-generation networking technologies as hyperscale customers scale out and network their AI clusters within data centers,” Chief Executive Hock Tan said in a statement.
Broadcom generated $4.6 billion in free cash flow during its third quarter.
The company forecast fiscal fourth-quarter revenue of about $9.27 billion, in line with the FactSet consensus.
Read: Intel offers an upbeat update, and its stock is gaining
Year to date, Broadcom is up 65% and the PHLX Semiconductor Index
SOX,
is up 45%, while the S&P 500 index
SPX
is up 18% and the tech-heavy Nasdaq Composite
COMP
is up 35%.
See also: Nutanix’s stock soars 12% on revenue beat, strong sales guidance
By Maitane Sardon
Pernod Ricard plans to buy back up to EUR800 million ($874 million) in shares in fiscal 2024 after the company reported an increase in sales and profit for fiscal 2023.
The French drinks group said Thursday that organic sales for the year ended June 30 grew 13% on a reported basis to EUR12.14 billion, while net profit for the year rose to EUR2.28 billion from EUR2.03 billion in fiscal 2022.
Analysts had expected sales of EUR12.16 billion and net profit of EUR2.4 billion, according to a FactSet-compiled poll.
For the fourth quarter, sales rose to EUR2.63 billion from EUR2.30 billion a year earlier.
The company said sales in all regions increased thanks to pricing, with all spirits categories delivering strong growth.
Looking ahead, the company backed its fiscal 2023-25 medium-term financial target, including reaching the upper end of between 4% and 7% of net sales growth and a 50 to 60-basis-point increase in operating margin.
It proposed a dividend of EUR4.70, an increase of 14% compared with fiscal year 2022.
Write to Maitane Sardon at maitane.sardon@wsj.com
Johnson & Johnson
on Wednesday issued new financial guidance after spinning out the consumer-health company
Kenvue
While its earnings and sales projections were lowered on an absolute basis, the company is maintaining its dividend and expects to increase its revenue at a faster pace.
Chinese regulators eased the nation’s mortgage requirements to let more home buyers enjoy favorable mortgage conditions that were previously limited to first-time home purchasers, the state-run Xinhua News Agency said on Friday.
China’s central bank, the Ministry of Housing and Urban-Rural Development and the National Financial Regulatory Administration jointly eased the requirements for home buyers who have already purchased homes to boost property sales as the real-estate slump continued, according to Xinhua.
Home buyers who don’t have family members with houses registered under their names can enjoy favorable terms that were previously limited to people buying their first homes, according to Xinhua.
First-home buyers are normally given cheaper mortgage rates than other buyers who have at least one apartment. First-home buyers are also required to make smaller down payments, as low as 20% of the total property value.
Write to Singapore editors at singaporeeditors@dowjones.com
Nvidia Corp. shares rallied in the extended session Wednesday after the maker of graphics processing units that is leading the AI-hardware charge reported a 141% surge in data-center sales and record results.
Nvidia
NVDA,
shares rallied 9% after hours, following a 3.2% rise in the regular session to close at $471.16, less than 1% below the stock’s record closing high of $474.94, set on July 18, according to FactSet data. A close at such levels on Thursday would mean a new record high for the stock.
The Santa Clara, Calif.-based company reported second-quarter net income of $6.19 billion, or $2.48 a share, compared with $656 million, or 26 cents a share, in the year-ago period. Adjusted earnings, which exclude stock-based compensation expenses and other items, were $2.70 a share, compared with 51 cents a share in the year-ago period.
Revenue surged to a record $13.51 billion from $6.7 billion in the year-ago quarter, driven by a 141% leap in data-center revenue to $10.32 billion.
Analysts surveyed by FactSet had forecast earnings of $2.08 a share on revenue of $11.19 billion, and data-center sales of $8.03 billion.
Nvidia forecast third-quarter revenue of $15.68 billion to $16.32 billion.
Analysts had estimated third-quarter earnings of $2.40 a share on revenue of $12.59 billion, with $9.15 billion of that from data-center sales. For the year, Wall Street, on average, expects earnings of $8.29 a share on $44.54 billion in revenue, a 71% increase from fiscal 2023’s $26.97 billion, with $32.41 billion of that in data-center sales.
“Companies worldwide are transitioning from general-purpose to accelerated computing and generative AI,” said Jensen Huang, founder and chief executive of Nvidia, in a statement. “Leading enterprise IT system and software providers announced partnerships to bring Nvidia AI to every industry. The race is on to adopt generative AI.”
Right after the report, Lopez Research analyst Maribel Lopez told MarketWatch that Nvidia’s “numbers prove just how much money there is in the AI hardware opportunity.”
“While cloud companies are selling AI services, Nvidia is walking away with a bulk of the revenue and profits,” Lopez said. “Nvidia’s minting cash with no apparent slowdown in sight.”
Nvidia shares are up more than 222% on a year-to-date basis, compared with a 42% surge in the PHLX Semiconductor Index
SOX,
a 15.5% rise by the S&P 500
SPX
and a 31% gain by the tech-heavy Nasdaq Composite
COMP
over the same span.
Nvidia, which has stood as the largest publicly traded chip maker by market cap since February, having traded that title back and forth with Taiwan Semiconductor Manufacturing Co.
TSM,
since late 2020, closed above the $1 trillion mark officially for the first time on June 14. Nvidia ended Wednesday with a valuation of $1.164 trillion, and one analyst thinks it could be the most valuable U.S. company in a few years.
Nvidia currently stands as the fifth-largest U.S. company by market cap behind Apple Inc.
AAPL,
Microsoft Corp.
MSFT,
Alphabet Inc.
GOOG,
GOOGL,
and Amazon.com Inc.
AMZN,
While all have a big stake in the future of AI, the latter three companies are scrambling to outfit their cloud-service provider data centers with new AI gear amid tight supply.
While Nvidia is considered the overwhelming leader in the AI chip market, Advanced Micro Devices Inc.
AMD,
is considered a distant second. AMD’s data-center numbers declined in the company’s recent earnings report, although the company didn’t have comparable AI chip sales in its results.
Shares of AMD and TSMC were both up more than 3% after hours Wednesday.
See also: Nvidia ‘should have at least 90%’ of AI chip market with AMD on its heels
Foot Locker
stock plunged on Wednesday as investors kicked around a bevy of bad news. The shoe and sportswear retailer missed expectations for second-quarter sales, slashed its full-year outlook again, and paused its dividend.
Deere
crushed Wall Street’s earnings estimates and increased fiscal-year financial guidance. The stock, however, was down. Current results were great, but investors are worried about whether the current phase of rising demand for agricultural equipment is over.