Movers: D R Horton, Las Vegas Sands, Netflix, Pool Corp, Tesla, WNS

Scott Peters
20 Jul, 2023
New York City

Market averages struggled near recent highs after investors reassessed economic outlook despite strong quarterly results from Tesla, Netflix, DR Horton and Las Vegas Sands. 

The S&P 500 index traded lower 0.02% to 4,563.17 and the Nasdaq Composite futures edged down 0.7% to 14,308.76. 

Tesla Inc declined 5.7% to $274.92 after the electric vehicle maker reported quarterly results and executives indicated lower sales volume in the current quarter because of plant maintenance. 

Total revenue jumped 47% to $24.9 billion from $16.9 billion and net income attributable to common stockholders increased 20% to $2.7 billion from $2.3 billion and diluted earnings per share rose 91 cents from 76 cents a year ago. 

Quarterly revenue and earnings were ahead of market expectations and operating margin fell to a low of at least five quarters to 9.6% from the high of 17.2% in third quarter of 2022 on higher discounting.  

Free cash flow jumped 62% to $1.0 billion from $621 million a year ago. 

Las Vegas Sands Corp dropped 3% to $57.85 after the casino and resort company reported mixed quarterly results. 

Revenue in the quarter soared to $2.5 billion from $1.0 billion and net income swung to a profit of $368 million from a loss of $414 million and diluted earnings per share increased to 41 cents from (38) cents. 

The company reinstated its quarterly cash dividend of 20 cents a share. 

Netflix Inc declined 8.3% to $437.95 after the video content streaming company reported weak revenue growth in the second quarter.  

Revenue rose 2.7% to $8.2 billion from $7.9 billion and net income was nearly unchanged at $1.49 billion and diluted earnings per share rose to $3.29 from $3.20 a year ago. 

Free cash flow jumped to $1.3 billion from $13 million and global streaming paid members increased 8% to 238.39 million from 220. 67 a year ago. 

D R Horton, Inc declined 3.7% to $123.10 after the company reported sharply higher-than-expected revenue and earnings. 

Revenue in the fiscal third quarter increased to $9.7 billion from $8.8 billion but net income declined to $1.4 billion from $1.7 billion and diluted earnings per share fell to $3.93 from $4.70 a year ago. 

Home sales in the quarter increased 8% to 22,985 units and 4% to $8.7 billion and net orders increased 37% to 22,879 and 26% to $8.7 billion. 

Despite the rising mortgage rates, new home sales continued to advance amid tight home supply availability as demand outstrips supply in suburban areas in the South and in the West. 

Cancelation rate declined to 18% in the quarter from 24% in the prior year quarter. 

In the quarter, the company repurchased 3.1 million shares for  $342.9 million. 

At the end of the quarter, the company had 43,800 homes in inventory, of which 5,700 homes were completed. 

Pool Corporation declined 0.3% to $365.20 after the pool products retailer reported a decline in sales. 

Revenue in the second quarter declined 10% to $1.9 billion from $2.1 billion and net income fell 24% to $232.3 million from $307.3 million and diluted earnings per share dropped to $1.10 from $1.0 a year ago. 

Net sales decreased 10% in the second quarter of 2023 to $1.9 billion compared to $2.1 billion in the second quarter of 2022 following 15% net sales growth in the second quarter of 2022 and 40% growth in the second quarter of 2021, resulting in a compound annual growth rate of 13% from 2019 to 2023.

The company lowered its annual earnings per share outlook to a new range between $13.14 and $14.14 from the previous estimate between $14.62 to $16.12. 

WNS (Holdings) Ltd declined 5% to $68.95 after the company reported mixed quarterly results. 

The information technology and business services provider based in India reported revenue in the fiscal first quarter 2024 ending in June increased 10.5% to $326.5 million from $295.4 million and profit after-tax decreased to $30.1 million from $33.1 million and diluted earnings per share fell to 60 cents from 65 cents a year ago.   

The company added six new clients and expanded existing 34 relationships and total staff at the end of the quarter was 59,871.