Movers: Disney, Hilton, MGM, NY Times, O'Reilly Automotive, Penske Automotive, PepsiCo, Wynn

Scott Peters
09 Feb, 2023
New York City

The Walt Disney Company increased 2% to $113.97 after the company announced its plan to control costs and focus on improving earnings after the release of the fourth quarter results. 

Disney said in a conference call it plans to cut $5.5 billion costs, $3 billion from non-sports content and $2.5 billion from non-content expenses and plans to eliminate 7,000 jobs.

Disney said revenue in the December quarter increased 8% to $23.5 billion and net income increased 11% to $1.3 billion from $1.1 billion and diluted EPS rose to 70 cents from 63 cents a year ago.

Hilton Worldwide Holdings Inc. increased 2.8% to $151.34 after the company reported a surge in revenue following the travel rebound. 

Hilton said revenue in the fourth quarter rose 33% to $2.44 billion and net income more than doubled to $327 million from $147 million and diluted earnings per share increased to $1.21 from 52 cents a year ago.

Revenue per available room rose 24.8% and 42.5%, on a currency neutral basis, for the  fourth quarter and full-year 2022, respectively. 

Hilton added 17,700 rooms to the system in the fourth quarter, resulting in 48,300 net additional rooms for the full year, contributing to net unit growth of 4.7%.

The hotel operator estimated 2023 net unit growth between 5.0% and 5.5%. 

Hilton's board of directors authorized a regular quarterly cash dividend of 15 cents a share to shareholders on record on February 28 and to be paid on or before March 31.

The company repurchased 3.8 million shares of its common stock during the fourth quarter, bringing total capital return, including dividends, to $542 million for the quarter and more than $1.7 billion for the full year 2022. 

MGM Resorts International jumped 8.5% to $44.88 after the casino operator reported better-than-expected revenue and earnings. 

MGM said net revenue in the fourth quarter increased 18% to $3.6 billion and net income increased to $284 million from $131 million and diluted EPS rose to 69 cents to 23 cents a year ago.

Net revenue at properties located in Las Vegas increased 27% to $2.3 billion in the fourth quarter compared to $1.8 billion in the prior year  quarter. 

The current quarter benefited from the inclusion of The  Cosmopolitan  and an increase in business volume and travel activity compared to the prior year  quarter, partially offset by the disposition of The Mirage. 

The New York Times Company fell 1% to $40.64 after the publishing company reported mixed quarterly results. 

NY Times said digital-only net subscribers increased 240,000 to 8.8 million and total subscribers rose to 9.55 million and digital-only ARPU declined 7% from a year ago to $8.93 in the fourth quarter.

NY Times said revenue in the fourth quarter increased 12.3% to $667.5 million and net income rose 1.3% to $70.7 million from $69.9 million and diluted EPS rose to 43 cents from 42 cents a year ago.

O'Reilly Automotive Inc rose 2.7% to $808.80 after the retailer reported strong increase in comparable store sales. 

O'Reilly said comparable store sales increased 9% in the fourth quarter on top of 14.5% in the previous year and in full-year 2022 rose 6.4% on top of 13.3% in 2021.

O’Reilly Automotive said revenue in the fourth quarter rose 11% to $3.6 billion and net income increased 2% to $529 million from $519 million and diluted EPS rose to $8.37 from $7.64 a year ago.

Penske Automotive Group, Inc increased 1.5% to $138.70 despite the transportation services and automotive dealer reporting a decline in earnings. 

Penske Automotive said revenue in the fourth quarter increased 11.4% to $7 billion and net income fell 4% to $298 million from $310.4 million and diluted earnings per share fell to $4.21 from $3.99 a year ago.

PepsiCo, Inc increased 1.3% to $173.40 after the beverage and snack food maker said price-hike supported revenue gains and the company also increased its annual dividend. 

PepsiCo said revenue in the fourth quarter increased 10.9% to $28 billion and net income dropped to $535 million from $1.3 billion and diluted earnings per share fell to 37 cents from 95 cents a year ago.

PepsiCo increased its annual dividend by 10% to $5.06 from $4.60 with the dividend expected to be paid in June 2023.

Wynn Resorts, Ltd increased 5% to $109.04 after the casino and resorts operator reported a smaller loss and revenues topped $1 billion level after travel to Las Vegas rebounded. 

Wynn said revenue in the fourth quarter was unchanged at $1.0 billion and swung to a profit of $32.4 million from a loss of $177 million and diluted earnings per share was 29 cents compared to ($1.54) a year ago.