Movers: Children's Place, First Republic, FedEx, Signet Jewelers

Scott Peters
17 Mar, 2023
New York City

In Friday's trading, size of the bank did not matter and large and mid-sized banks declined amid lingering concerns about the health of the U.S. banking system. 

JPMorgan Chase, Wells Fargo, Bank of America, PNC Bank, US Bancorp and Truist financial Corp declined between 3% and 7%. 

U.S. banks are sitting on $620 billion of unrecognized losses as of the end of 2022, reflecting a 28% loss of unrealized equity capital in the banking system. 

Moreover, in the first quarter of 2023, the yields on Treasury bonds have risen, generating additional losses for banks of all sizes holding long and short-dated U.S. Treasury securities. 

First Republic Bank declined 23.7% to $26.16 despite 11 largest banks pledged to deposit $30 billion in the embattled bank in a show of support and prevent a run on the bank. 

Western Alliance Bancorp dropped 18% to $30.28, Zions Bancorporation fell 5.5% to $30.39 and KeyCorp declined 6.6% to $11.47. 

FedEx Corp increased 7.8% to $220.24 after the parcel delivery company revised higher its fiscal year outlook. 

Revenue in the fiscal third quarter ending in February declined to $22.2 billion from $23.6 billion and net income fell to $771 million from $1.1 billion and diluted earnings per share dropped to $3.05 from $4.20 a year ago.  

The parcel delivery company completed a repurchase of 9.2 million shares in the fiscal third quarter. 

The company lifted its fiscal year 2023 diluted earnings per share forecast in the range of  $13.80 to $14.40 before the mark-to-market retirement  plans accounting adjustments, compared to the prior forecast of $12.50 to  $13.50 a share. 

The company estimated fiscal year capital spending of $5.9 billion. 

Ballard Power Systems fell 2.4% to $5.01 after the Vancouver, Canada based company reported a sharp decline in revenue. 

Revenue in the fourth quarter declined to $20.5 million from $36.7 million and net loss from continuing operations shrank to $34.4 million from $43.8 million and diluted loss per share fell to 12 cents from 15 cents a year ago. 

The fuel cell power system maker said full-year revenue in the full-year 2022 declined to $83.8 million and $104.5 million and net loss per continuing operations increased to $173.5 million from $114.4 million a year ago. 

The Children's Place Inc decreased 0.7% to $38.35 after the specialty retailer reported a decline in revenue and swung to a loss in the final quarter. 

Revenue in the fourth quarter ending in January declined 10.2% to $456.1 million from $507.8 million a year ago. 

The retailer swung to a loss of $50.5 million from a profit of $39.0 million and diluted earnings per share was ($4.10) from $2.68 a year ago. 

In the full-year 2022 revenue dropped 10.8% to $1.71 billion compared to $1.92 billion in the previous year.  

Net loss in the year was $1.1 million compared to a profit of $187.2 million and diluted earnings per share was ($0.09) compared to $12.59 in the previous year.   

The retailer ended the quarter with 613 stores and square footage of 2.9 million, a decrease of 8.3% compared to the prior year. 

The company permanently closed 59 stores in fiscal 2022 and permanently closed 586 stores, since the announcement of its optimization plan in 2013

Signet Jewelers Ltd fell 3.6% to $72.85 after the parent of Zales and Kay Jewelers reported a decline in sales in the holiday quarter. 

Revenue in the fourth quarter ending in January declined 5.2% to $2.66 billion from $2.81 billion and net income fell to $268.7 million from $305.7 million a year ago. 

Diluted earnings per share in the period increased to $5.02 from $4.91 in the previous year. 

Same store sales declined 9.15% from the previous year but rose 16.4% from the comparable period in fiscal year 2020.

Total sales in the fiscal year 2023 decreased 0.2% to $7.8 billion and net income dropped  to 342.2 million from 735.4 million and diluted earnings per share fell to $6.64 from $12.22 a year ago. 

Same store sales in the year fell 6.1% from the previous year but rose 18.1% from the fiscal year 2020.