Movers: American Airlines, Cleveland-Cliffs, Cognizant, Disney, Infosys, KB Home, Logitech

Scott Peters
12 Jan, 2023
New York City

American Airlines Group Inc jumped 5.2% to $16.13 after the airline raised its fourth quarter revenue outlook on higher demand stronger-than-estimated prices. 

The company estimated fourth quarter total revenue to rise between 16% and 17% from the comparable quarter in 2019, higher than its prior guidance of up 11% to 13%.

The airline also lifted its adjusted earnings per share outlook range between $1.12 and $1.17 from 50 cents to 70 cents. 

The company said it has achieved more than half of its goal to reduce total debt by $15 billion by the end of 2025, with total debt down more than $7.5 billion in the first 18 months of the program.

Delta Air, United Airlines and Southwest rose between 2% and 3%.  

Bed Bath & Beyond added 15.5% to $4.02 extended rally to the second day after meme-stocks gained and speculators bid up stock of the struggling retailer. 

Bed Bath & Beyond stock has soared more 170% in the last five trading days. 

Cleveland-Cliffs Inc jumped 4.4% to $20.09 after Morgan Stanley lifted its stock rating to "overweight" from an "equal-weight."

Morgan Stanley analyst lifted its stock price target to $26 from $13.60.  

Revenue in the third quarter ending in September declined to $5.7 billion from $6.0 billion a year ago. Net income fell to $165 million or 29 cents from $1.3 billion or $2.33 a diluted earnings per share. 

Cognizant Technology Solutions Corp soared 8.1% to $66.44 after the company appointed former Infosys president Ravi Kumar as chief executive and a member of the board. 

The company also raised its estimate for the fourth quarter to $4.8 billion from the previous range between $4.72 billion and $4.77 billion. 

The company also estimated full-year 2022 adjusted earnings per share between $4.38 and $4.40 from the previous guidance between $4.43 and $4.46. 

Walt Disney Co increased 3.4% to $99.30 after the company elected independent director Mark Parker as chairman of the board and geared up for a proxy battle with activist investor Nelson Peltz.  

Infosys Ltd ADR increased 0.6% to $18.23 after the India-based tech services provider reported December quarter revenue increased 9.6% to $4.66 billion. 

Net income in the quarter increased to $800 million from $774 million and diluted earnings per share rose to 19 cents from 18 cents a year ago. 

The  company also said it has initiated the purchase of its stock on December 7 and as of today acquired 31.3 million or $600 million worth of its stock. 

The company has acquired 51.5% of total authorization of ?9,300 crore (about $1.15 billion) at an average price of ?1,531 per share (or $18.80), compared to maximum buyback price of ?1,850 per share (or $22.70).

KB Home declined 3.4% to $34.71 after the home-builder reported slightly weaker-than-expected quarterly results. 

Revenue in the fourth quarter 16% to $1.94 billion and homes delivered increased 3% to 3,786 and average selling price rose 13% to $510,400. 

Net income increased to $216.4 million from $174.2 million and diluted earnings per share increased to $2.47 from $1.96 a year ago.

The home-builder estimated revenue in the fiscal first quarter to range between $125 billion and $1.4 billion and average home price to range between $490,000 and $500,000.  

Logitech International SA plunged 17.1% to $56.35 after the computing devices maker lowered its sales outlook. 

Logitech said preliminary revenue in the fiscal third quarter ending In December between $1.26 billion and $1.27 billion, a decline between 22% and 23% in the U.S. dollars.  

Preliminary GAAP operating income is estimated to range between $171 million and $176 million, down between 33% and 35%, compared to $263 million in the same quarter a year ago.