U.S. Movers: CarMax, Concentrix Corp, GameStop, Micron Technology, Peloton Interactive

Scott Peters
28 Sep, 2023
New York City

Stocks drifted lower after the yields on U.S. Treasury notes jumped to 16-year highs on the worries of the Fed's higher-for-longer stance to continue to drive rates higher.  

The S&P 500 index decreased 0.03% to 4,274.06 and the Nasdaq Composite fell 0.1% to 13,082.52. 

The yield on 2-year Treasury notes increased to 5.11%, 10-year Treasury notes inched lower to 4.56% and 30-year Treasury bonds edged down to 4.80%. 

Crude oil increased $1.30 to $92.38 a barrel and natural gas prices rose 5 cents to $2.95 a thermal unit. 

Micron Technology Inc declined 4.5% to $65 after the advanced chipmaker reported smaller-than-expected loss in the fiscal fourth quarter from the previous quarter. 

Revenue in the quarter declined to $4.0 billion from $6.6 billion and the company swung to a net loss of $1.4 billion from a profit of $1.4 billion and diluted earnings per share was ($1.31) from $1.35 a year ago.

The company reported revenue in the third quarter of $3.75 billion and a net loss of $1.9 billion and diluted loss per share of  $1.73. 

However, investors were disappointed with the company's adjusted earnings per share outlook of $1.07 in the fiscal first quarter. 

Micron guided fiscal first quarter revenue of $4.4 billion with a band of $200 million and diluted earnings per share to range between ($1.24) and $0.07. 

GameStop Corp edged up 0.1% to $17.17 after the company appointed activist investor Ryan Cohen as the company's chief executive effective immediately. 

The company fired its chief executive Matthew Furlong three months after the retailer continued to struggle with sales and its restructuring plan. 

CarMax Inc dropped 9.9% to $71.80 on the weakening demand for used vehicles and the used-car dealer reported mixed quarterly results. 

Net revenue in the fiscal second quarter ending in August fell 13.1% to $7.1 billion and the company purchased 292,000  vehicles from customers and dealers, a 14.9% decline from a year ago.

Retail and wholesale vehicle sales declined 9% to 342,662 units from a year ago and online retail sales accounted for 14% of retail sales compared to 11% in the quarter a year ago. 

Total retail used vehicle sales declined 7.4% to 200,825 units and comparable unit sales declined 9% from a year ago. 

Total wholesale unit sales decreased 11.2% from a year ago to 141,837 units.  

Net income in the quarter declined to $118.6 million from $125.9 million and diluted earnings per share dropped to 75 cents from 79 cents a year ago. 

Peloton Interactive Inc jumped 2.5% to $4.79 after the company signed a five-year strategic partnership with Lululemon. 

Peloton agreed to provide its content on Lululemon's exercise app, and Lululemon will become primary apparel provider. 

Concentrix Corp soared 10.1% to $81.41 despite the customer engagement services provider reported weaker-than-expected sales and earnings. 

Revenue in the fiscal third quarter ending in August increased 3.4% to $1.62 billion from $1.57 billon and net income dropped to $77.6 million from $106.7 million and diluted earnings per share dropped to $1.49 from $2.04 a year ago.    

The company paid a 27.5 cents per share quarterly dividend on August 8 and the Board of Directors declared a quarterly dividend of 30.25 per share payable on November 7 to shareholders of record at the close of business on October 27.

The company forecasted fiscal fourth quarter revenue between $2.19 billion and $2.215 billion and adjusted non-GAPP diluted earnings per share between $3.03 and $3.15.