U.S. Movers: Autozone, Expedia, Macy's, Lowe's, Norwegian Cruise, Zoom Video

Scott Peters
27 Feb, 2024
New York City

AutoZone rose 2% to $2,825.0 after the automotive parts retailer reported better-than-expected revenue and earnings in its fiscal second quarter. 

Revenue in the fiscal second quarter rose 4.6% to $3.85 billion from $3.69 billion, net income increased to $515.03 million from $476.5 million, and diluted earnings per share advanced to $28.89 from $24.64 a year ago. 

Same-store sales increased 3.0%, driven by a 0.3% increase in domestic sales and a 23.9% rise in sales at international locations. 

AutoZone repurchased 84,000 shares of its common stock at an average price per share of $2,676, for a total of $223.8 million. 

At the end of the fiscal second quarter ending on February 10, the company had $2.1 billion remaining under its current share repurchase authorization.

During the quarter, AutoZone opened 19 new stores and closed three in the U.S., opened six new stores in Mexico, and opened four in Brazil, for a total of 26 net new stores. 

As of February 10, the retailer had 6,332 stores in the U.S., 751 in Mexico, and 108 in Brazil, for a total store count of 7,191.

Macy's declined 1.9% to $19.0 after the apparel retailer reported slightly lower-than-expected revenue in the fourth quarter and offered a cautious sales outlook in the current quarter. 

The retailer reported revenue in the fourth quarter decreased to $8.12 billion from $8.26 billion, net income swung to a loss of $71 million from a profit of $508 million, and diluted earnings per share were a loss of 26 cents compared to a profit of $1.83 a year ago. 

Revenue in the fourth quarter of 2023 included 14 weeks, compared to 13 weeks in the quarter a year ago. 

Macy's estimated full-year revenue ranges between $22.2 billion and $22.9 billion, and comparable sales across all channels range between a decline of 1.5% and 1.5% compared to a year ago. 

Macy's also said it plans to close about 150 underperforming stores and expand its small-format stores. 

Lowe's Companies decreased 0.6% to $230.01 after the home improvement retailer reported better-than-expected fourth-quarter results. 

Revenue in the fourth quarter declined to $18.6 billion from $22.4 billion, net income increased to $1.02 billion from $957 million, and diluted earnings per share rose to $1.77 from $1.58 a year ago. 

Prior-year quarterly sales included approximately $1.4 billion from the additional 53rd week, as well as $958 million generated from the sale of its Canadian retail business. 

Comparable sales for the quarter decreased 6.2% due to a slowdown in home renovation demand and unfavorable January winter weather, while pro-customer comparable sales were flat for the quarter. 

The retailer also estimated full-year revenue in the current fiscal year to decline between $84 billion and $85 billion, from $86.4 billion in the fiscal year 2023. 

During the quarter, the company repurchased approximately 1.9 million shares for $404 million, and it repurchased 29.9 million shares for $6.3 billion in the year. 

The company also paid $633 million in dividends in the fourth quarter and $2.5 billion in dividends for the year. 

In total, the company returned $8.9 billion to shareholders through share repurchases and dividends in the fiscal year 2023. 

Zoom Video Communications rose 9% to $68.80 after the online communication platform reported slightly better-than-expected quarterly revenue. 

Revenue in the fourth quarter decreased to $1.14 billion from $1.11 billion, net income swung to $298.8 million from a loss of $104 million, and diluted earnings per share were 95 cents compared to a loss of 36 cents. 

The company estimated total revenue in the first quarter at $1.125 billion, and revenue in constant currency is expected to be approximately $1.125 billion. 

Non-GAAP income from operations is expected to be between $410.0 million and $415.0 million. 

First quarter non-GAAP diluted earnings per share is expected to be between $1.18 and $1.20, with approximately 316 million non-GAAP weighted average shares outstanding.

Expedia Group increased 0.2% to $135.25, and the company said it plans to lay off about 1,500 people, or 9% of its staff, as the company battles slowing demand growth after a breakneck rebound over the previous two years. 

Norwegian Cruise Line soared 10% to $17.55 after the travel company reported wider-than-expected fourth-quarter results, but the company guided a strong 2024 outlook. 

Revenue in the fourth quarter increased to $1.98 billion from $1.52 billion, net loss shrank to $1106.5 million from $482.8 million, and diluted loss per share shrank to 25 cents from $1.14 a year ago. 

The company's cost-cutting initiatives were helped by a higher passenger count in the quarter. 

Gross cruise costs per capacity day were approximately $280 in the fourth quarter, compared to $311 last quarter. 

Adjusted net cruise costs, excluding fuel per capacity day, in the fourth quarter of 2023 were approximately $151, in line with the company's prior guidance.