U.S. Movers: General Mills, FedEx, Tesla, Toro, Winnebago

Scott Peters
20 Dec, 2023
New York City

FedEx dropped 11.1% to $248.85 after the parcel delivery company reported mixed quarterly results and an estimated annual revenue outlook that fell short of investors' expectations.

Revenue in the fiscal second quarter ending in November decreased to $22.2 billion from $22.8 billion. Net income edged up to $900 million from $788 million, and diluted earnings per share rose to $3.55 from $3.07 a year ago.

The company estimated full-year revenue to decline by a "low-single-digit" percentage compared to the prior estimate of flat revenue growth.

The company estimated full-year diluted earnings per share to range between $15.35 and $16.85 before mark-to-market retirement plans accounting adjustment and between $17.0 and $18.50 excluding costs related to business optimization initiatives.

Tesla decreased 0.2% to $256.68 after the company sharply lowered prices on luxury sedan vehicles in China to match lower prices from market leader BYD.

General Mills declined 4% to $64.0 after the food products maker reported quarterly earnings were ahead of expectations but revenue fell short of estimates, and the company lowered its annual outlook.

Revenue in the fiscal second quarter ending on November 26 declined 2% to $5.1 billion from $5.2 billion, net income declined 2% to $595.5 million from $605.9 million, and diluted earnings per share rose to $1.02 from $1.01 a year ago.

North American organic net and reported sales declined 2% after organic volume fell 5 percentage points, offset by a 4 percentage point increase in price.

The company revised its annual sales growth outlook for full-year fiscal 2024.

Organic net sales are estimated to range between a decrease of 1% and flat from the previous estimate of growth between 3% and 4%, reflecting a slower volume recovery in the year.

The company reiterated its free cash flow conversion to be at least 95% of adjusted after-tax earnings.

Winnebago Industries decreased 4.5% to $71.80 after the company issued a cautious outlook, citing macroeconomic headwinds.

Revenue in the fiscal first quarter ending on November 25 declined 19.9% to $763.3 million from $952.2 million, net income declined from $25.8 million to $60.2 million, and diluted earnings per share eased to 78 cents from $1.73 a year ago.

Towable RV segment revenue decreased 4.8% to $330.8 million, primarily driven by a decline in average selling price related to product mix and targeted price reductions.

Motorhome RV segment revenue plunged 28% to $334.4 million, reflecting a decline in unit volume and a higher level of discounts.

Marine segment revenue dropped 33.5% to $87.3 million because of fewer unit sales and higher-than-normal discounts.

Toro Company jumped 9.7% to $97.83 after the lawn mover maker reported better-than-expected quarterly results.

Revenue in the fiscal fourth quarter ending in October declined to $983 million from $1.2 billion, net income dropped to $70.3 million from $117.6 million, and diluted earnings per share eased to 67 cents from $1.12 a year ago.

The company estimated fiscal 2024 sales to advance in a low single-digit range and adjusted diluted earnings per share in the range of $4.25 to $4.35.