U.S. Movers: Broadcom, Cooper Companies, DocuSign, lululemon, RH, Vail Resorts

Scott Peters
08 Dec, 2023
New York City

Broadcom decreased 0.3% to $922.0 after the chipmaker reported better-than-expected quarterly results.

Revenue in the fiscal fourth quarter increased to $9.3 billion from $8.93 billion, net income advanced to $3.5 billion from $3.3 billion, and diluted earnings per share rose to $8.25 from $7.83 a year ago.

Semiconductor solution revenue increased 3% to $7.33 billion, and infrastructure revenue rose 7% to $1.97 billion.

The advanced chipmaker guided current fiscal year revenue of $50 billion.

Luluemlon Athletica decreased 2% to $454.67 after the specialty apparel retailer reported quarterly results and issued a weaker-than-expected holiday sales outlook.

Total revenue in the fiscal third quarter ending in October increased 19% to $2.2 billion, driven by a 12% sales increase in North America and a 49% surge in international markets.

Comparable sales increased by 9%, including comparable store sales of 9%, and direct-to-consumer sales soared by 18% from a year ago.

Net income in the quarter decreased to $248.7 million from $255.5 million, and diluted earnings per share fell to $1.97 from $2.0 a year ago.

During the third quarter, the athletic apparel retailer purchased 0.6 million shares of its own common stock at an average price of $380.88 per share for a cost of $210.8 million.

As of the end of the fiscal third quarter on October 29, the company had $243.2 million available for stock repurchase, and the board of directors approved an additional stock repurchase plan of up to $1.0 billion.

The company offered a cautious sales growth outlook for the upcoming holiday season.

For the fiscal fourth quarter, the retailer expects net revenue to be in the range of $3.135 billion to $3.170 billion, representing growth of 13% to 14%.

Diluted earnings per share are expected to be in the range of $4.85 to $4.93 for the quarter, assuming a tax rate of approximately 30%.

RH dropped 8.5% to $257.51 after the furniture retailer reported weaker-than-expected revenue and posted an unexpected loss in its latest quarter.

Net revenue in the third quarter declined to $751.2 million from $869.0 million, and the company swung to a net loss of $2 million from a profit of $98.7 million. 

Diluted earnings per share were a loss of 12 cents compared to a profit of $4.17 a year ago.

The company attributed the decline in sales to the "frozen housing market" because of elevated home prices and rising mortgage rates combined with higher promotional activities in the furniture industry.

The company narrowed its revenue guidance range for the year to $3.06 billion to $3.08 billion and now expects its adjusted operating margin to be in the range of 13.6% to 14.0%.

Docusign declined 0.9% to $47.0 after the online service provider reported higher-than-expected quarterly earnings but offered a muted outlook.

Total revenue in the fiscal third quarter increased 9% to $700.4 million from $645.6million, and  the company swung to a net income of $38.8 million from a loss of $29.9 million, and diluted earnings per share were 19 cents compared to a loss of 15 cents a year ago. 

The company guided fiscal fourth quarter revenue to fall between $696 million and $700 million, subscription revenue between $679 million and $688 million, and billings between $858 million and $768 million.   

Cooper Companies fell 1.4% to $340.0 despite the eyecare company reporting organic revenue growth and higher earnings in its latest quarter.

Revenue in the fiscal fourth quarter increased 9% to $927.1 million from $848.1 million, net income advanced to $84.5 million from $65.6 million, and diluted earnings per share rose to $1.70 from $1.32 a year ago.

The company announced a four-to-one stock split effective February 16, and the board of directors terminated the semi-annual dividend.

The maker of contact lenses and fertility solutions forecasted fiscal 2024 sales to range between $3.809 billion and $3.877 billion, an increase between 6% and 8%, and non-GAAP diluted earnings per share between $13.60 and $14.0.

Vali Resorts declined 0.8% to $215.25 after the ski resort operator reported weaker-than-expected quarterly sales and earnings.

Revenue in the fiscal first quarter decreased to $258.5 million from $279.4 million, net loss expanded to $175.5 million from $136.9 million, and diluted loss per share rose to $4.60 from $3.40 a year ago. 

The ski resort operator increased quarterly cash dividend per share to $2.06 from $1.91 a year ago and payable on January 9 to shareholders on record on December 26. 

The company reiterated its fiscal year 2024 earnings in the range between $316 million and $394 million.