Movers: Blue Apron, Carnival Corp, Micron, Natuzzi, Nike, Rent-A-Center

  • Barry Adams
  • Sep 30, 2022
  • Carnival Corp struggled with business recovery and rising operating costs and large debt repayment loomed. Rent-A-Center lowered its quarterly outlook. Micron Technology guided 25% gross margin in the fiscal first quarter.

    Stocks on Wall Street turned lower after the release of the latest inflation report.

    The hotter-than-expected inflation, the preferred measure by the Federal Reserve, was the second signal in as many days indicating that elevated inflation is here to stay despite the five rate hikes in six months.

    The PCE price index on an annual basis increased 6.2%, slower than 6.4% in July but still elevated and significantly ahead of Fed's target rate of 2%.

    The yield on 2-year Treasury notes held stable at 4.19%, 10-year Treasury notes edged down to 3.73% and 30-year bonds traded near 3.76%.  

    Immediate month delivery futures of crude oil declined $1.03 to $88.06 a barrel and natural gas fell 7 cents to $6.80 a thermal unit.

    The S&P 500 index dropped 0.4% to 3,622.20 and the Nasdaq Composite index declined 0.3% to 10,704.11.

    Blue Apron Holdings was in focus and gained 3.8% to $5.77 after the meal-kit company said chief financial officer  Randy Greben will step down from the role on October 17 to take a position with another company. 

    Greben was appointed in the role in January 2021. 

    Blue Apron appointed Mitchell Cohen to serve as interim Chief Financial Officer. 

    Carnival Corp plunged 20.9% to $7.25 after the cruise line operator reported larger-than-expected loss and slower than expected business recovery after the pandemic. 

    Revenues in the third quarter ending in August increased 80% from the second quarter and jumped nearly eight-fold from a year ago to $4.3 billion. 

    Net loss in the quarter shrank to $770 million compared to $2.8 billion a year ago and diluted loss per share fell to 65 cents from $2.50 a year ago. 

    The company said fourth quarter bookings are lagging pre-pandemic 2019 levels, and at lower daily rates but 2023 advance bookings are "slightly above the historical average and at considerably higher prices, as compared to 2019."

     The cruise operator is also battling with $28 billion of long term debt, with about $9 billion due before the end of 2025. 

    Micron Technology, Inc rose 1.8% to $50.91 after the semiconductor chipmaker reported mixed quarterly results and offered an outlook that fell short of expectations. 

    Revenues in the fourth quarter declined to $6.6 billion from $8.3 billion a year ago. 

    Net income in the quarter fell to $1.5 billion from $2.7 billion and diluted earnings declined to $1.35 from $2.39 a year ago.

    For the fiscal year 2022, revenue jumped to $30.7 billion from $27.7 billion and net income soared to $8.7 billion from $5.8 billion and diluted earnings per share rose to  $7.75 from $8.35 a year ago.  

    The company guided fiscal first quarter revenue of $4.25 billion with a band of $250 million and gross margin between 23% and 27%. 

    The company guided diluted earnings per share between a loss of 9 cents and a profit of 10 cents. 

    Natuzzi SpA gained 3.4% to $6.41 ahead of the furniture maker releasing its quarterly earnings release after the market closes on Friday. 

    In the previous quarter ending in March, the company said revenues increased 16.8% to 118.5 million euros. 

    In the quarter, earnings plunged to 1.3 million euros from 5.9 million euros or diluted earnings per share to 2 euro cents from 11 euro cents a year ago.  

    Nike Inc declined 11.1% to $84.80 after the premium athletic shoemaker reported a sharp fall in earnings. 

    In the latest quarter ending in August, Nike said sales increased 4% to $12.7 billion from $12.2 billion a year ago. Despite the weakness in its third largest market in China and supply chain challenges, sales rose.  

    Net income in the fiscal year first quarter plunged 22% to $1.5 billion from $1.87 billion a year ago. Diluted earnings per share declined to 93 cents from $1.16 a year ago. 

    Rent-A-Center Inc plunged 21.0% to $17.64 after the rent to own furniture and electronics company lowered its current quarter earnings outlook. 

    The company tightened its third quarter revenues in the range between $1.00 billion and $1.02 billion from the previous estimate in the range between $1.00 billion and $1.05 billion. 

    The company also lowered its non-GAAP diluted earnings per share in the range between 85 cents and 95 cents from the previous guidance between $1.05 and $1.25.  

Annual Returns

Company Ticker 2022 2021 2020
Blue Apron Holdings Inc. APRN -84% 21% -17%
Micron Technology Inc MU -41% 24% 40%
Nike Inc NKE -34% 18% 40%
Carnival Corporation CCL -53% -7% -57%
Natuzzi S p A NTZ -69% 29% 674%
Rent A Center Inc RCII -52% 25% 34%