In early trading on Thursday, the Dow Jones industrials were up 0.07%, while the S&P 500 was down 0.57% and the Nasdaq down 0.93%.
After U.S. markets closed on Wednesday, Salesforce reported earnings per share (EPS) and revenue that topped analysts’ expectations. More importantly, CEO Marc Benioff told analysts on the conference call that “improving profitability is our highest priority.” That may quiet the pack of activist investors seeking changes at the Dow company. Shares traded up about 13% early Thursday.
Snowflake also beat estimates on the top and bottom lines, and it announced a $2 billion stock buyback program. The company expects revenue growth of 40% in its 2024 fiscal year, to go along with gross margins of 76% and an operating income margin of 6%. That outlook fell short of what investors wanted to hear. Shares traded down 13%.
Plug Power missed consensus estimates on both EPS and revenue, a report that investors interpret as disappointing but not fatal. The company issued upside guidance for fiscal 2023 and reaffirmed long-term targets out to 2030. Shares traded down 9.4% Thursday morning.
Before U.S. markets opened on Thursday, Macy’s reported EPS that beat estimates, but it fell short on revenue. Same-store sales were down at Macy’s but up at Bloomingdale’s. The department store guided revenue in a range that topped the consensus at the high end and was a bit short on revenue. Comparable store sales are expected to be down between 2% and 4% year over year in 2023. Shares traded up 9.6%.
Kroger beat the consensus EPS estimate but missed slightly on revenue. The company issued upside EPS guidance for its 2024 fiscal year and temporarily halted its buyback program so that it can pay down debt in anticipation of its proposed merger with Albertsons. Shares traded up more than 5% early Thursday.
Tech biggies Broadcom, Dell, Hewlett Packard Enterprise and Marvell are set to report results after markets close on Thursday, along with ChargePoint, Costco and Nordstrom. There are no notable reports expected on Friday.
Here is a look at what to expect from these two companies reporting quarterly earnings first thing Monday morning.
Lordstown Motors
Electric vehicle maker Lordstown Motors Corp. (NASDAQ: RIDE) originally was scheduled to release quarterly results on February 27 but delayed it by a week. The company also issued a recall on its Endurance pickup and halted production of the truck due to an issue that could have caused the vehicle to lose power while in operation. After its SPAC merger in October 2020, shares spiked to around $32.00. In early January, the stock dropped below $1.00 for the first time.
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