U.S. Movers: Five Below, Pure Storage, Salesforce, Snowflake

Scott Peters
30 Nov, 2023
New York City

Five Below was nearly unchanged at $188.0 after the deep discount retailer reported its third-quarter results.

Revenue in the third quarter increased 14.2% to $736.4 million from $645.0 million, and comparable store sales rose 2.5% from a year ago.

Net income in the quarter declined to $14.6 million from $16.1 million, and diluted earnings per share fell to 26 cents from 29 cents a year ago.

The company repurchased 500,000 shares in the third quarter at a cost of $80 million.

The company estimated net sales in the fourth quarter to be in the range of $1.32 billion to $1.35 billion, including an additional 60 stores, based on a 2% to 3% rise in comparable store sales.

Net income in the fourth quarter is estimated to be in the range of $201 million and $211 million.

Pure Storage plunged 15.7% to $32.17 after the data storage company estimated a lower-than-expected current quarter and annual revenue.

Revenue in the third quarter increased 13% to $762.8 million from $676.1 million; the company swung to net income of $70.4 million from a loss of $0.7 million; and diluted earnings per share were 21 cents compared to breakeven.

Subscription services revenue increased by 26% to $309.6 million, and subscription annual recurring revenue also increased by 26% to $1.3 billion.

Salesforce soared 9.2% to $251.53 after the customer contact management software company reported better-than-expected earnings.

Revenue in the third quarter increased 11% to $8.7 billion from $7.8 billion, net income soared to $1.2 billion from $210 million, and diluted earnings per share rose to $1.25 from 21 cents a year ago.

The company repurchased $1.9 billion of its stock in the third quarter.

The software company estimated fourth-quarter revenue to increase 10% and fall in the range of $9.18 billion and $9.23 billion and narrowed its full-year fiscal 2024 revenue outlook to an increase of 11% to between $34.75 billion and $35.8 billion.

Snowflake jumped 7.2% to $187.95 after the software company reported that revenue jumped in its latest quarter.

Revenue in the fiscal third quarter ending in October jumped 32% to $734.2 million from $557 million; net loss expanded to $214.7 million from $201.4 million; and diluted loss per share expanded to 65 cents from 63 cents a year ago.

The company said remaining performance obligations increased by 23% to $3.7 billion, and the company now has 436 customers with trailing 12-month product revenue of more than $1.0 million.

Non-GAAP adjusted free cash flow soared 70% from a year ago to $111 million in the quarter.