Movers: Alaska Air, American Express, AT&T, DR Horton, IBM, Seagate Technology, Tesla, Zions Bancorp

Scott Peters
20 Apr, 2023
New York City

Alaska Air Group, Inc declined a fraction to $43.62 after the airline reported mixed quarterly results and reaffirmed annual outlook. 

Revenue in the first quarter increased 31% to $2.2 billion and net loss shrank to $142 million from $143 million and diluted loss per share fell to $1.11 from $1.14 a year ago.

 The regional airline guided second quarter revenue to rise between 2.5% and 5.5% and full-year 2023 earnings per share between $5.50 and $7.50. 

American Express Company declined 3.7% to $158.96 after the payment processor said revenue rose but net income declined. 

Revenue in the first quarter increased 22% to $14.3 billion and net income fell 13% to $1.8 billion from $2.1 billion and diluted earnings per share declined to $2.40 from $2.73 a year ago. 

AT&T Inc decreased 10.1% to $17.70  after the telecom company reported weaker-than-expected quarterly results. 

Revenue in the first quarter increased 1.4% to $30.1 billion and net income attributable to common stockholders declined to $4.2 billion from $4.8 billion and earnings per share fell to 57 cents from 65 cents a year ago. 

Mobile telephony segment added 572,000 net subscribers in the quarter, slower than at least 650,000 postpaid subscribers in every quarter in 2022. 

 Fiber subscribers increased 272,000 to 7.8 million in the quarter.  

The stock declined after the free cash flow at the end of the quarter fell to $1 billion from $2.8 billion a year ago but the telecom company retained its full-year free cash flow estimate of $16 billion. 

D R Horton Inc rose 6.9% to $108.87 after the home builder reported flat revenue and a decline in earnings. 

Revenue in the fiscal second quarter ending in March was flat $7.9 billion and net income plunged to $949 million from $1.4 billion and diluted earnings per share fell to $2.73 from $4.03 a year ago. 

Net sales orders for the fiscal second quarter fell 5% to 23,142 homes and 11% in value  to $8.6 billion compared to 24,340 homes and $9.7 billion in the same quarter a year ago. 

The home builder guided full-year 2023 revenue in a range from $31.5 billion to $33.0 billion and estimated home sales between 77,000 and 80,000 units. 

IBM increased 0.4% to $126.84 after the technology company reported better-than-expected earnings. 

Revenue in the first quarter increased 0.4% to $14.3 billion and net income increased 41% to $927 million from $733 million and diluted earnings per share rose to $1.02 from 82 cents a year ago. 

Free cash flow increased to $1.34 billion from $1.24 billion and long term debt increased to $53.8 billion from $46.2 billion from a year ago. 

The company guided full-year 2023 free cash flow to increase $1.0 billion to $10.5 billion and revenue growth between 3% and 5% in constant currency. 

Seagate Technology Holdings PLC declined 7.6% to $58.11 after the disk maker reported weak quarterly results. 

Revenue in the fiscal third quarter ending in March declined to $1.8 billion from $2.8 billion and the company swung to a net loss of $433 million from $346 million and diluted earnings per share was ($2.09) compared to $1.56 a year ago. 

The company also announced a restructuring plan to reduce its cost structure in the face of market weakness. The plan is expected to be completed by the year's end and cost $150 million. 

Seagate forecasted venue in the fiscal fourth quarter decline to $1.7 billion with a band of $150 million and non-GAAP loss per share of 20 cents with a band of 20 cents. 

Tesla Inc decreased 8.3% to $165.67 after the electric vehicle maker reported a sharp fall in earnings in the first quarter. 

Revenue in the quarter rose 24% to $23.3 billion and net income declined 24% to $3.3 billion from $3.7 billion and diluted earnings per share fell to 95 cents from $1.07 a year ago. 

Vehicle deliveries increased 36% to 422,875 from 310,048 a year ago. 

Zions Bancorporation NA fell 4.3% to $31.32 after the regional bank reported a decline in deposits and earnings below expectations. 

Net interest income in the first quarter increased 25% to $679 million and net income attributable to common stockholders increased to $198 million from $195 million and diluted earnings per share rose to $1.33 from $1.27 a year ago. 

Net interest margin increased to 3.33% from 2.60% a year ago. 

Stock fell after the bank reported a decline in deposits in the aftermath of the demise of Silicon Valley Bank on March 10. 

Total deposits fell 16% or $13.1 billion to $69.2 billion at the end of the quarter. 

More than two-thirds of the  decrease related to accounts with balances greater than $10 million and loan-to-deposit ratio was 81%, compared  with 62% in the prior year quarter.

Accounts with deposits larger than $250,000 are not insured by the Federal Deposit Insurance Corporation or FDIC, and balances larger than the insured amount may be lost in the event if the bank collapses.