U.S. Movers: Gitlab, Lands End, J M Smucker

Scott Peters
05 Dec, 2023
New York City

Stocks paused for the second day in a row after benchmark indexes rallied for five consecutive weeks following speculation that interest rates were near peak rates.

The S&P 500 index declined 0.2% to 4,565.03, and the Nasdaq Composite decreased 0.3% to 14,240.12.

The yield on 2-year Treasury notes increased to 4.63%, 10-year Treasury notes inched lower to 4.23%, and 30-year Treasury bonds decreased to 4.39%.

Gitlab soared 14.2% to $60.44 after the software developer reported better-than-expected quarterly results and the company reported adjusted operating profit for the first time.

Revenue in the third quarter increased 32% to $149.7 million from $113.0 million, net loss expanded to $285.2 million from $48.5 million, and diluted loss per share increased to $1.84 from 33 cents a year ago.

The company estimated fourth-quarter revenue to fall between $157 million and $158 million, non-GAAP operating income between $5 million and $6 million, and non-GAAP diluted earnings per share between 8 cents and 9 cents.

The company estimated revenue in the fiscal year 2024 to range between $573 million and $574 million, non-GAAP-adjusted losses between $8 million and $9 million, and non-GAAP-adjusted diluted earnings per share between 12 cents and 13 cents.

Lands End fell 3.5% to $6.45 after the apparel retailer reported weaker-than-expected quarterly results.

Revenue in the third quarter declined 12.5% to $324.7 million from $371 million, and revenue fell 9.5% excluding Land's End Japan, which closed at the end of fiscal 2022.

Net loss expanded to $112.4 million from $4.7 million, and diluted loss per share rose to $3.52 from 14 cents a year ago.

In the fourth quarter, the company estimated revenue to range between $490 million and $520 million, net income to range between $4 million and $7 million, and diluted earnings per share between 13 cents and 22 cents.

The company guided revenue in fiscal 2023 to be between $1.45 billion and $1.48 billion, net loss between $115 million and $118 million, and diluted loss per share between $3.60 and $3.70.

J.M. Smucker advanced 2.6% to $115.34, and the stock lacked direction after the food maker lowered its annual expectations after revenue plunged 12% from a year ago.

Revenue in the fiscal second quarter ending in October declined 12% to $1.94 billion from $2.2 billion, net income increased 2% to $194.9 million from $191.1 million, and diluted earnings per share rose to $1.90 from $1.79 a year ago.

The company tightened the upper end of its comparable sales estimate and lowered its view of free cash flow and adjusted earnings per share.

The comparable sales outlook range for fiscal 2024 was tightened to between 8.9% and 9% from the previous range of 8.5% and 9.5%, and the adjusted earnings per share range was between $9.25 and $9.65 from the previous estimate of between $9.45 and $9.85.

The company also sharply lowered its full-year free cash flow estimate to $530 million from $650 million, but its capital expenditure to increase to $610 million from the previous estimate of $550 million.