U.S. Movers: Delta Air Lines, Domino's Pizza, Ford Motor, Walgreens

Scott Peters
12 Oct, 2023
New York City

Stocks struggled after the release of consumer price inflation report showed stubborn inflation in September. 

The S&P 500 index increased 0.1% to 4,381.14 and the Nasdaq Composite rose 0.1% to 13,673.63. 

The yield on 2-year Treasury notes increased to 5.06%, 10-year Treasury notes inched higher to 4.61% and 30-year Treasury bonds held at 4.75%. 

Delta Air Lines jumped 3% to $37.10 after the international carrier said third-quarter earnings soared 60% from a year ago on strong travel demand.  

Revenue in the September quarter jumped 11% to $15.5 billion from $14.0 billion and net income rose 59% to $1.1 billion from $695 million and diluted earnings per share advanced to $1.72 from $1.08.

The company repaid $3.7 billion of debt year-to-date and management anticipated to repay over $4 billion in the year. 

Standard & Poor's in August revised the airline's debt rating to BB+ with a "positive outlook."

The company forecasted total revenue in the December quarter to increase between 9% and 12%.  

Walgreens Boots Alliance increased 0.8% to $22.89 after the retail pharmacy chain reported mixed quarterly results and forecasted weak annual earnings growth outlook. 

Revenue in the fiscal fourth quarter ending in August increased to $35.4 billion from $32.4 billion and net loss shrank to $180 million from $415 million and diluted loss per share fell to 21 cents from 48 cents a year ago. 

Fiscal 2023 sales increased 4.8% to $139.1 billion from $132.7 billion and net income swung to a loss of $3.1 billion from $4.3 billion a year ago. 

Earnings in the year were impacted by the sharp decline in Covid-19 testing and vaccine volumes.   

The pharmacy retail chain guided fiscal 2024 sales in the range between $141 billion and $145 billion and adjusted earnings per share between $3.20 and $3.50. 

Ford Motor Company declined 2.2% to $11.98 after United Auto Workers expanded its strike to a key plant in Kentucky where the company builds popular SUVs. 

Domino's Pizza Inc declined 3.4% to $346.50 after the food company reported weaker-than-expected earnings and sales at the U.S. comparable locations declined 0.6%. 

Total revenue in the quarter ending on August 10 eased to $1.02 billion from $1.06 billion and net income soared to $147.7 million from $100.5 million and diluted earnings per share surged to $4.18 from $2.79 a year ago. 

Excluding the impact of the  closure of the Russia market, the global net store count in the third quarter was 135 stores, comprising 27 net U.S. and 108 net international store openings.

The pizza delivery company forecasted its 2023 global net store growth "to trend at or slightly below the low-end" of its 5% to 7% two- to three-year outlook. 

Additionally, the company estimated its 2023 global retail sales growth, excluding foreign currency impact, "to trend modestly below the midpoint" of its 4% to 8% two -to three-year outlook.