U.S. Movers: Burlington Stores, Dicks Sporting, Fresenius, HP, Nvidia

Scott Peters
22 Nov, 2023
New York City

Nvidia Corp. declined 1.7% to $490.75 after the company reported a surge in quarterly earnings and sales.

Revenue in the third quarter increased 206% to $18.1 billion from $5.9 billion, net income soared 12-fold to $9.2 billion from $680 million, and diluted earnings per share rose to $3.71 from 27 cents a year ago.

The advanced chipmaker estimated revenue in the fourth quarter to be $20 billion, with a band of 2%, a gross margin of 74.5%, and a non-GAAP gross margin of 75.5%.

The company continues to benefit as businesses and the government transition from general-purpose computing to accelerated computing and generative AI.

"“Large language model startups, consumer internet companies, and global cloud service providers were the first movers, and the next waves are starting to build.

Nations and regional CSPs are investing in AI clouds to serve local demand, enterprise software companies are adding AI copilots and assistants to their platforms, and enterprises are creating custom AI to automate the world’s largest industries," said founder and CEO of Jensen Huang in a statement to investors.

Burlington Stores soared 20% to $165.06 after the discount retailer reported strong quarterly results, and comparable store sales rose 6% from a year ago.

Revenue in the third quarter increased 12% to $2.28 billion from $2.04 billion, net income advanced to $48.55 million from $16.78 million, and diluted earnings per share rose to 75 cents from 26 cents a year ago.

Total merchandise inventories declined 8% to $1.32 billion from $1.45 billion, but store-level inventories rose 2%.

During the third quarter, the company repurchased 348,948 shares of its common stock for $52 million, and $78 million were still available in the stock repurchase plan.

For the fiscal fourth quarter, the retailer is estimating total sales to increase between 5% and 7% and comparable sales to fall in the range between a decline of 2% and zero.

The company estimated total sales in fiscal year 2024 to increase 11%, including a 2% increase because of the 53rd week, and adjusted earnings per share in the range of $5.52 and $5.67, including 20 cents of expected incremental expenses related to the recently acquired Bed Bath & Beyond leases.

Dick's Sporting Goods increased 2.2% to $121.59 after the specialty retailer reported quarterly results.

Comparable store sales rose 1.7% on top of a 6.5% increase in the quarter a year ago.

Revenue in the third quarter increased 2.8% to $3.04 billion from $2.95 billion, net income decreased 12% to $201 million from $228 million, and diluted earnings per share fell to $2.39 from $2.45 a year ago.

The company repurchased 3.5 million shares for $388 million in the third quarter.

The company lifted its 2023 comparable store sales outlook to a range of 0.5% to 2.0%, up from the previously estimated flat to 2.0% increase.

The retailer also lifted its 2023 diluted earnings per share outlook to $11.45 from $12.05 and raised its full-year non-GAAP outlook to $12.0 to $12.60, up from the previous estimate between $11.50 and $12.30.

Fresenius Medical Care increased 0.4% to €27.71 after the dialysis service provider lifted its annual outlook.

Revenue in the third quarter declined 3% to €4.9 billion from €5.03 billion, net income fell to €84 million from €230 million, and net income dropped to 29 cents from 7 cents a year ago.

The company reiterated its 2023 revenue to grow at a low to mid-single-digit percentage rate from €19.4 billion in 2022.

The company raised its 2023 operating earnings to grow at a low single-digit percentage rate from €1.54 billion in 2022, from the previous outlook of flat to a decline in the low single-digit percentage rate.

The German company also said it had resolved its legal dispute with the U.S. Department of Defense and finalized its settlement for payment of dialysis services provided under the Tricare program to members of military service, their dependents, and retirees.

The company sought to receive payment for services provided under the Tricare program on or before January 11, 2023.

As a consequence of the settlement agreement, Fresenius anticipates a positive impact on operating income of €175 million in the fourth quarter.

HP Inc. decreased 2.3% to $27.21 after the personal computing and equipment company reported quarterly results. 

Revenue in the fiscal fourth quarter decreased 5% to $13.8 from $14.8 billion, the company swung to a net income of $974 million from a loss of $23 million, and diluted earnings per share of 97 cents from a loss of 2 cents a year ago. 

Personal Systems net revenue fell 8% to $9.4 billion on the ongoing weakness in consumer and enterprise demand, and Printing net revenue fell 3% to $4.4 billion. 

HP estimated fiscal first quarter 2024 diluted earnings per share between 60 cents and 70 cents and non-GAAP diluted earnings per share in the range between 76 cents and 86 cents. 

The company estimated 2024 diluted earnings per share in the range between $2.68 and $3.08 and non-GAAP diluted earnings per share $3.25 and $3.65.   

HP generated $1.9 billion of free cash flow in the fourth quarter, which included net cash provided by operating activities of $2 billion adjusted for net investments in leases of $28 million and net investments in property, plant and equipment of $134 million.

HP’s dividend payment of $0.2625 per share in the fourth quarter resulted in cash usage of $0.3 billion. HP returned 14% of its fourth quarter free cash flow to shareholders.