Movers: Bassett, Furniture, Carnival, MSC Industrial, RH, Schnitzer Steel, UniFirst, Walgreens

Barry Adams
30 Jun, 2022
New York City

U.S. stocks extend losses in the quarter and first half after inflation and economic slowdown worries dominated market sentiment. 

The S&P 500 index dropped 0.4% to 3,805.75 and the Nasdaq Composite index fell 0.6% to 11,112.38. 

Bassett Furniture Industries Inc 5.9% to 17.26 reported sales in the fiscal 2022 second quarter ending in May increased 17.0% to $128.7 million. 

Net income in the quarter rose to $47.2 million or $4.95 a share from $5.97 million or 60 cents a share. 

Inventories at the end of the quarter rose 19% to $92.8 million. 

The results included the sale of the Zenith Logistics subsidiary to J. B. Hunt Transport Services, Inc. on February 28, 2022 and generated $47.1 million of net income, or $4.94 per share.

Zenith Logistics was sold for $85.5 million to JB Hunt. 

Excluding the transaction, on a comparable basis earnings per share rose to 81 cents from 51 cents a year ago. 

Carnival Corp declined 4.8% to $8.49 and extended this week's loss to over 20% after Morgan Stanley issued negative comments and warned that the stock could go to zero in the event of another demand shock. 

Royal Caribbean Cruises declined 4.4% and Norwegian Cruise Line dropped 5.5%. 

Retail stocks led the decliners after luxury furnishing retailer RH Inc issued its second revenue warning in a month. 

MSC Industrial Supply Co increased 0.3% to $75.56 after the company said sales in the fiscal 2022 third quarter increased 10.7% to $958.7 million. 

Net income in the quarter increased 5.5% to $99.7 million or $1.78 a share from $99.4 million or $1.68 a share. 

The company guided double digit average sales growth to continue in the fiscal fourth quarter. 

RH dropped 10.5% to $212.05 after the retailer said second quarter revenues are estimated to decline between 1% and 3% and fiscal 2022 sales are estimated to fall between 2% and 5% from the previous range between zero and 2% growth issued on June 2. 

Tech stocks continued their slide in the morning trading and the tech-heavy Nasdaq is set to decline more than 20% in the second quarter. 

Apple Inc fell 1.9%, Alphabet declined 2.2%, Amazon dropped 2.3%, and Meta eased 0.4%. 

Schnitzer Steel Industries declined 2.7% to $33.35 after the company said sales in the third quarter ending in May rose 23.1% to $1.01 billion. 

Net income increased to $76 million from $65 million a year ago and diluted earnings per share rose to $2.52 from $2.16 a year ago.  

The company declared a cash dividend of 18.75 cents a common share, payable July 25, 2022 to shareholders of record on July 11, 2022.

 Schnitzer has paid a dividend every quarter since going public in November 1993.

UniFirst Corp rose 3.5% to $169.32 after the uniform rental company reported sales in the fiscal 2022 third quarter ending in May rose 10.2% to $511.5 million. 

Net income plunged 40.3% to $25.1 million or $1.33 a share from $42.0 million or $2.21 a share. 

The company guided revenues in fiscal 2022 between $1.993 billion and $2.0 billion and diluted earnings per share between $5.40 and $5.60. 

Walgreens Boots Alliance Inc declined 4.7% to $38.95 after the drug retailer said sales in the fiscal 2022 third quarter ending in May declined 4.2% to $32.6 billion. 

Net income declined $289 million from $1.2 billion a year ago and diluted earnings per share fell to 33 cents from $1.38 a year ago. 

U.S. retail stores' comparable sales increased 1.4% from a year ago and gained 2.4% excluding tobacco sales. 

U.S. pharmacy sales decreased 9.7% from a year ago negatively impacted by an 11 percentage point decline in the AllianceRx Walgreens business.