Movers: Albertsons, Beyond Meat, Citigroup, JPMorgan, Morgan Stanley, PNC, US Banc, Wells Fargo

Scott Peters
14 Oct, 2022
New York City

Albertsons Companies declined 7.4% to $26.50 on news that the company has agreed to be acquired by Kroger for $24.6 billion or $34.10 a share. 

Albertsons owns and operates 2,200 stores in 34 states and Washington D.C. with 290,000 employees. 

Albertsons store network spans 22 brands including Acme, Safeway and Tom Thumb.  

Kroger Co declined 7.7% to $43.99. 

Kroger owns and operates 2,800 stores in 35 states with 420,000 employees. 

Kroger operates a portfolio of 25 store brands including West Coast-based Ralphs and Fred Meyer.   

The acquisition is most likely to draw antitrust scrutiny from regulators as Kroger looks to expand its network and strengthen its position in a market dominated by Walmart and Amazon.  

Beyond Meat Inc dropped 7.8% to $13.64 after the company said it plans to reduce its workforce by 200 employees or 19% of its workforce and take one-time charge of $4 million in the fourth quarter of 2022. 

 The company also guided its third quarter sales to decline 23% to $82 million and fourth quarter sales are estimated to fall between $400 million and $425 million, a decrease between 9% and 14%. 

The food company had previously guided full-year 2022 net revenues in the range of $470 million to $520 million.

Citigroup Inc added 0.8% to $43.30 after the global bank said revenues rose in rising interest rates but earnings fell 25% on weak investment banking revenues and the company increased credit loss provisions. 

Revenues increased 6% to $18.5 billion from $17.4 billion a year ago, primarily on the gain in sale of its consumer business in the Philippines.

Without the transaction, revenue declined 1%  as higher interest income was more than offset by non-interest income decline. 

Net income fell 25% to $3.5 billion from $4.6 billion and earnings per share declined to $1.63 from $2.15 a year ago.  

JPMorgan Chase & Co increased 2.4% to $111.79 after the company said net revenue in the third quarter rose 10% to $32.7 billion. 

Net income plunged 17% to $9.7 billion from $11.7 billion and diluted earnings per share dropped to $3.12 from $3.74 a year ago. 

Net income declined as the bank took credit loss provisions ahead of the expected economic slowdown. 

Net income decline was driven by a net credit reserve build of $808 million compared to a net reserve release of $2.1 billion in the prior year. 

The current quarter included net investment securities losses of $959 million resulting in a decrease of $729 million in after-tax net income. 

Morgan Stanley fell 5.3% to $75.08 after the investment bank reported third quarter revenues declined to $13 billion from $14.8 billion a year ago. 

Net income in the period fell to $2.6 billion from $3.7 billion and diluted earnings per share dropped to $1.47 from $1.98 a year ago. 

Investment banking revenues in the quarter plunged 55% to $1.27 billion from $2.85 billion a year ago. 

Fee-based asset inflow in its wealth management unit declined to $16.7 billion from $70.6 billion and fee-based client assets declined to $1.3 trillion from $1.75 trillion a year ago. 

Nutanix Inc soared 23.4% to $26.14 on the news that the company is looking to find a merger partner or go private. 

The news was first reported by the Wall Street Journal. 

PNC Financial Services Group fell 1.6% to $149.04 after the company said revenue in the third quarter increased 8% to $5.5 billion from $5.2 billion a year ago. 

Net income in the period increased 10% to $1.64 billion from $1.49 billion and diluted earnings per share rose to $3.78 from $3.30 a year ago. 

Loans in the quarter increased 3% to $313 billion from $291.3 billion and total deposits rose to $439.2 billion from $454.4 billion a year ago. 

Total nonperforming loans increased 1% to $2.1 billion  as lower consumer nonperforming loans  were more than offset by higher commercial nonperforming loans.

US Bancorp rose 3.5% to $42.73 after the company said third quarter net interest income increased 7.4% to $6.3 billion from $5.9 billion a year ago. 

Net income fell 10.7% to $1.8 billion from $2.03 billion and diluted earnings per share declined to $1.16 from $1.30 a year ago. 

Pretax income before the provision for credit losses and excluding MUFG Union Bank merger and integration-related charges increased 11.0% compared with a year ago. 

The net interest margin increased to 2.83% in the current quarter from 2.53% in the third quarter of 2021 primarily due to the impact of higher rates on earning assets, partially offset by deposit pricing and short-term borrowing costs

Wells Fargo & Co increased 2.9% to $43.53 after the company said third quarter revenues increased 4% to $19.5 billion from $18.8 billion a year ago. 

Net income in the quarter dropped on higher credit loss provision of $784 million compared to addition of $1.4 billion in the prior year's period. 

Net income declined 31% to $3.5 billion from $5.1 billion and diluted earnings per share fell to 85 cents from $1.17 a year ago. 

Lower mortgage activities and lower revenues from securitization activities dragged non-interest income by 25%.