Movers: AeroVironment, General Mills, Chip Stocks

Scott Peters
28 Jun, 2023
New York City

Chip stocks were in focus on the worries that the U.S. may impose more exports restrictions to China including a ban on sale of AI chips. 

Nvidia Corp declined 2.2% to $409.98, AMD dropped 1.6% to $108.57 and Intel Corporation fell 2.5% to $33.23. 

General Mills Inc declined 4.4% to $77.16 after the food company reported weaker than expected quarterly results. 

Net sales in the fiscal fourth quarter ending in May increased 3% to $5.03 billion and sales rose on organic basis 5%. 

Net earnings in the quarter declined 25% to $615 million from $822.8 million and diluted earnings per share fell to $1.04 from $1.36 a year ago. 

For the full-year revenue increased to $20 billion from $19 billion and net income edged lower to $2.6 billion from $2.7 billion and diluted earnings per share to $4.31 from $4.42 a year ago. 

In the year, the company hiked dividend per share to $2.16 from $2.04 in the previous year.  

The company forecasted fiscal 2024 organic sales to increase between 3% and 4% and adjusted operating profit to increase between 4% and 6% from the base of $3.5 billion reported in fiscal 2023. 

The company guided adjusted diluted EPS to increase 4% to 6% in constant currency from the base of $4.30 in fiscal 2023 and free cash flow conversion is expected to be at least 95% of adjusted after-tax earnings.  

AeroVironment, Inc jumped 5.4% to $95.20 after the military drone maker reported better-than-expected quarterly results and forecasted higher-than-expected full-year revenue. 

Revenue in the fiscal fourth quarter increased 40% to $186.0 million from $132.6 million and the company swung to a net loss of $160.5 million from a profit of $7.3 million and diluted earnings per share was ($6.31) from 29 cents a year ago. 

At the end of April, funded backlog increased to $424.1 million from $210.8 million a year ago. 

For fiscal year 2024, the company expects revenue between $630 million and $660 million, net income of between $50 and $58 million. 

The company estimated non-GAAP adjusted EBITDA of between $110 million and $120 million, earnings per diluted share of between $1.91 and $2.21. 

Non-GAAP earnings per diluted share, which excludes amortization of intangible assets, other non-cash purchase accounting expenses and equity securities investments gains or losses, of between $2.30 and $2.60.