Movers: Alcoa, Allstate, American Airlines, IBM, Las Vegas Sands, Tesla, WD-40

Scott Peters
20 Oct, 2022
New York City

Alcoa Corp recovered from the morning loss of 10% and traded up 5.5% to $39.69 after the aluminum maker reported unexpected quarterly loss, reflecting restructuring and pension charges.. 

Third quarter revenue declined to $2.85 billion from $3.1 billion a year ago. 

The company swung to a loss of $746 million from a net income of $337 million and diluted loss per share was $4.17 from income of $1.76 a year ago. 

Alumina prices sourced from third parties increased 16% and average price realized for the sales of aluminum fell 17%.  

Allstate Corp dropped 12.2% to $118.56 after the insurance company said in an earnings alert that it would report a third quarter loss. 

The loss in the quarter ending in September is estimated in the range between $675 million and $725 million largely on the account of Hurricane Ian. 

Pre-tax catastrophe losses for the third quarter, net of reinsurance, are estimated to be $763 million and for the month of September were $440 million, or $348 million after-tax, with approximately 80% of losses related to Hurricane Ian.

American Airlines Group dropped 3.5% to $13.50 despite the company reporting third quarter revenue and earnings ahead of expectations. 

Third quarter revenue soared to $13.5 billion from $8 billion a year ago. 

Net income in the period surged to $483 million from $169 million and diluted earnings per share rose to 69 cents from 25 cents a year ago. 

Transatlantic travel revenue jumped nearly five-fold to $1.9 billion from $408 million and domestic revenues increased to $8.8 billion from $6.5 billion a year ago. 

IBM increased 4.5% to $128.01 after the tech company lifted its annual outlook and said that the company is experiencing pick up in business activities in its software and infrastructure segments. 

Software segment revenues increased 7%, consulting revenues rose 5% and infrastructure revenues soared 15% in the quarter. 

Revenues increased 6% to $14.1 billion from  a year ago and net loss was $3.25 billion on the account of one-time charge of $4.4 billion related to pension asset transfer to an insurer.  

Despite the currency headwinds, the company estimates 2022 revenues in constant currency to increase more than mid-single digit.  

Las Vegas Sands Corp gained 4.7% to $37.28 after the casino operator reported larger-than-estimated quarterly loss. 

Third quarter revenues increased to $1.0 billion from $857 million a year ago. 

Net loss in the quarter shrank to $381 million from $495 million and diluted loss per share declined to 31 cents from 61 cents a year ago. 

The operations in China and Singapore were impacted by the continued travel restrictions and slow recovery in travel spending. 

Sands China revenues declined to $251 million from  $611 million and net loss increased to $472 million from $423  million a year ago. 

Tesla Inc dropped 6.4% to $207.62 after the company posted third quarter results that missed some investors revenue expectations. 

Tesla reported third quarter revenue increased 56% to $21.4 billion from $13.7 billion a year ago. 

Net income in the quarter doubled to $3.3 billion from $1.6 billion and diluted earnings per share rose to 95 cents from 48 cents a year ago.

In the quarter, free cash flow jumped 148% to $3.3 billion from $1.3 billion a year ago and cash on hand increased to $21.1 billion from $16.09 billion.

Total vehicle production soared 54% to 365,923 units from 237,823 a year ago. 

WD-40 Company dropped 10.06% to $153.64 after the household products maker reported weaker-than-expected gross margin in the quarter and fiscal year. 

The company reported revenue in the fiscal fourth quarter ending in August rose 13% to $130.4 million from $115.2 million a year ago. 

Net income in the quarter surged to $14.7 million from $8.4 million and diluted earnings per share jumped to $1.08 from 61 cents a year ago. 

Gross margin in the fiscal fourth quarter was 47.4% compared to 51.2% in the prior year fiscal quarter. 

For the full fiscal year, gross margin was 49.1% compared to 54.0% a year ago. 

The company forecasted fiscal 2023 net sales growth between 5% and 10% with net sales expected to be between $545 million and $570 million.  

Gross margin percentage for the full year is expected to be between 51% and 53%