Movers: Activision Blizzard, BP, Chegg, Cummins, Hertz. Pinterest, Royal Caribbean

Scott Peters
07 Feb, 2023
New York City

Activision Blizzard increased 4.3% to $74.75 after the computer game maker reported better-than-expected earnings. 

Activision Blizzard said revenue in the fourth quarter increased 7% to $2.3 billion but net income plunged 29% to $403 million and diluted EPS fell to 51 cents from 72 cents a year ago.

For the quarter, Activision Blizzard’s net bookings jumped 43% to $3.57 billion from $2.49 billion and In-game net bookings rose $1.82 billion from $1.24 billion a year ago.

BP Plc increased 5.7% to $36.81 after the energy explorer reported bumper profit reflecting higher crude oil, gasoline and natural gas prices. 

BP Plc said group revenue increased 34.5% to $70.2 billion and net income soared more than four-fold to $11.1 billion from $2.6 billion and diluted EPS rose to $3.50 from 70 cents a year ago.

BP repurchased $3.2 billion of stock in the quarter including $2.5 billion repurchase announced in the previous quarter. 

Chegg Inc dropped 20% to $16.70 after the online student support service provider forecasted weak subscriber growth. 

Chegg said the fourth quarter revenue declined 1% to $205.2 million and net income dropped to $1.9 million from $24.3 million and diluted EPS fell to 1 cent from 15 cents a year ago.

Chegg said services subscribers increased 5% to 8.2 million in the full-year 2022. 

Cummins Inc decreased 1.1% to $248.20 after the industrial company reported a decline in net income in its latest quarter. 

Cummins said revenue in the fourth quarter rose 35% to $7.8 billion and net income increased 6% to $631 million and diluted EPS increased to $4.43 from $2.73 a year ago.

For the full-year 2022, revenue increased 17% to $28 billion and net income rose to $2.15 billion from $2.13 billion and diluted earnings per share rose to $15.12 from $14.61 a year ago. 

For the full-year 2023, Cummins estimated revenue to increase between 12% and 17% and operating earnings to increase between 14.5% and 15.2% 

Hertz Global increased 7.5% to $19.07 after the rental car service provider swung to profit following a rebound in travel. 

Hertz said sales in the fourth quarter rose 4% to $2 billion and swung to a net income of $116 million from a loss of $710 million and diluted loss per share was 1 cent compared to $1.52 a year ago.

Average rentable vehicles increased 3% to 465,943 and vehicle utilization increased to 79% from 78% a year ago. 

Excluding litigation settlements of $168 million in the quarter, direct operating expense per transaction day  was $33, down $2 from the third quarter 2022, reflecting improved operating leverage.

Pinterest Inc declined 6.2% to $26.12 after the social media platform operator reported a sharp decline in earnings. 

Pinterest said revenue in the fourth quarter increased 4% to $877 million and net income dropped 90% to $17 million from $174.7 million and diluted EPS fell to 3 cents from 25 cents a year ago.

Pinterest also announced that its board of directors has authorized a stock repurchase program of up to $500 million of its Class A common stock over the next 12 months.

Royal Caribbean soared 9.2% to $75.46 after the cruise operator reported an upbeat outlook. 

Royal Caribbean said revenue in the fourth quarter rose 160% to $2.6 billion and net loss shrank to $500 million from $1.4 billion and diluted loss per share fell to $1.96 from $5.33 a year ago. 

The company said bookings are approaching previous record highs and at higher prices. 

In the fourth quarter, RCL said load factors were in line with guidance at 95%, with Caribbean sailings reaching 100%, and holiday sailings close to 110%.