Movers: Applied Materials, Farfetch, Foot Locker, Gap, Palo Alto Networks, Ross Stores, Williams Sonoma

Scott Peters
18 Nov, 2022
New York City

Applied Materials, Inc increased 0.5% to $105.02 after the semiconductor equipment manufacturing company reported better-than-expected quarterly results and estimated 

Revenue in the fiscal fourth quarter ending in October increased 10% to $6.75 billion from $6.1 billion a year ago. 

Gross margin decreased to 45.9% from 48.1% a year ago.   

In the quarter, net income declined to $1.59 billion from $1.71 billion and diluted earnings per share decreased to $1.85 from $1.89 a year ago. 

The equipment maker said fiscal first quarter revenue is expected around $6.7 billion with a band of $400 million, including the impact of recently announced export regulations and ongoing supply chain challenges. 

Farfetch Ltd fell 17.7% to $7.52 after the online luxury apparel and accessories platform reported weaker-than-expected sales and wider-than-expected losses. 

Third quarter sales declined 1% to  $593.4 million from gross merchandise value decreased 4.9% to $967.4 million from a year ago. 

In the third quarter, the company swung to a loss of $274.9 million from a profit of $769.1 million a year ago. 

The loss in the third quarter was driven by a drop in value of equity holdings in other businesses. 

In the period, diluted loss per share increased to 71 cents from 25 cents loss a year ago. The earnings per share doesn't take into account the changes linked to equity holdings. 

Foot Locker, Inc jumped 7.4% to  $35.51 after the retailer reported higher-than-expected sales and earnings and comparable store sales rose faster-than-expected.

Third quarter sales declined 0.7% to $2.17 billion from $2.18 billion a year ago. 

Net income plunged to $96 million from $158 million and diluted earnings per share dropped to $1.01 from $1.52 a year ago. 

The retailer also lifted its annual outlook and said full-year 2022 sales are estimated to drop in the range of 4% to 5% from the previous estimated range of 6% to 7%. 

Comparable store sales are estimated to decline between 4% and 5% from the previous estimated range of 8% to 9%. 

Gap Inc jumped 2.9% to $13.10 after the struggling retailer reported unexpected quarterly profit and higher-than-expected sales.

Third quarter net sales increased 2% to $4.04 billion and comparable sales increased 1% from a year ago.

Online sales increased 5% from a year ago and represented 35% of total sales.

Third quarter income swung to $282 million compared to a loss of $252 million and diluted earnings per share was 77 cents compared to a loss of 40 cents a year ago.

Palo Alto Networks Inc increased 6.8% to $167.34 after the cybersecurity company marginally lifted its annual outlook and reported quarterly results ahead of expectations. 

Revenue in the fiscal first quarter increased 25% to $1.6 billion and first quarter billings rose 27% to $1.7 billion. 

In the quarter, net income was $20.0 million or 6 cents a diluted share, compared to a net loss of $103.6 million or 35 cents.   

For the fiscal second quarter, the company guided revenue between $1.63 billion and $1.66 billion, an increase between 24% and 26% from a year ago. 

For fiscal 2023, the company guided revenue between $6.85 billion and $6.91 billion, an increase between 25% and 26% from a year ago. 

Ross Stores, Inc jumped 11.4% to $109.31 after the discount retailer lifted its fourth quarter guidance.