Movers: American Eagle Outfitters, Asana, Dave & Buster's, GameStop, McCormick, Regeneron Pharma

Barry Adams
08 Sep, 2022
New York City

Stocks on Wall Street see-sawed after the Fed Chairman Powell offered another forceful reiteration of his commitment in fighting high inflation and not back off from rate hikes till the inflation hovers near target rate of 2%. 

The S&P 500 index was nearly unchanged at 3,978.11 and the Nasdaq Composite index dropped 0.4% to 11,749.75. 

American Eagle Outfitters Inc dropped 10.2% to $10.14 after the apparel retailer's second quarter results fell short of expectations. 

Revenues in the fiscal year 2022 second quarter ending in July were flat at $1.2 billion. 

From a year ago,  consolidated store revenue declined 2% and total digital revenue declined 6% and compared to pre-pandemic first quarter 2019, store revenue increased 1% and digital revenue increased 60%.

Gross margin declined to 30.9% from 42.1% a year ago largely on higher markdowns and rising freight costs. 

In the quarter, the apparel retailer swing to a loss of $42.5 million from a profit of $121.5 million a year ago. 

Asana Inc soared 24.5% to $23.66 after the company's latest quarterly results exceeded analysts expectations. 

The communication software company said revenues in the second quarter ending in July surged 51% to $134.9 million. 

Net loss in the quarter rose to $113.0 million or 59 cents a diluted share from $64.8 million or 40 cents a diluted share a year ago.  

The company guided third quarter revenues in the range of $138.5 million and $139.5 million, an increase between 38% and 39%. 

Dave & Buster's Entertainment Inc fell 10.3% to $39.47 after the restaurant operator reported better-than-expected revenues and comparable same store sales but net income fell more than estimated. 

Total revenue in the second quarter ending in July increased 24% to record $468.4 million. 

During the quarter, net income totaled $29.1 million or 59 cents a diluted share from $52.8 million or $1.07 a year ago.

Net income was $32.4 million or 90 cents per diluted share in the pre-pandemic second quarter of 2019.

Comparable sales in the second quarter at Dave & Buster's brand stores rose 9.6% compared to second quarter 2019. 

GameStop Corp jumped 7.4% to $25.84 after the video game retailer sales revenues in the second quarter ending in July edged slightly lower to $1.13 billion from $1.18 billion a year ago. 

Inventory at the end of the second quarter increased to $734.8 million from $596.4 million a year ago. 

Net loss in the quarter expanded to $108.7 million from $61.7 million a year ago. 

Stock jumped in today's trading after the company also announced a partnership with crypto exchange FTX. 

The company is looking to diversify its business away from hardware retail and expand to the NFT marketplace, but the change has come at a significant expense. 

At the end of the quarter, cash and cash equivalents had declined to $908.9 billion from $1.7 billion a year ago. 

McCormick & Company dropped 8.2% to $78.0 after the company offered a gloomy outlook. 

The flavor company said preliminary revenues in the third quarter ending in August increased 3% from a year ago. 

Operating income in the quarter declined to $223 million from $265 million a year ago and earnings per share of 79 cents is estimated to match the results a year ago. 

The company lowered its full-year fiscal 2022 revenues to increase 2% from the previous estimate between 3% and 5% and earnings per share in the range between $2.64 and $2.69 compared to $2.80 a year ago. 

Regeneron Pharmaceuticals Inc soared 19% to $709.90 after the company said its eye treatment drug Eylea performed well in two key trials for patients with diabetic macular edema and wet age-related macular degeneration. 

The following results were noted in the note released Thursday. 

91% and 89% of diabetic DME patients were rapidly initiated and maintained on 12- and 16-week dosing intervals (without need for regimen modification) through week 48, respectively.  

79% and 77% of wAMD patients were rapidly initiated and maintained on 12- and 16-week dosing intervals (without need for regimen modification) through week 48, respectively.