U.S. Movers: Accenture, Darden Restaurants, Five Below, Micron Technology

Scott Peters
21 Mar, 2024
New York City

Micron Technology increased 17.2% to $112.75 after the advanced chipmaker reported better-than-expected quarterly results, driven by demand for artificial intelligence applications and tight supply. 

Revenue in the fiscal second quarter ending in February soared to $5.8 billion from $3.7 billion, net income swung to a profit of $793 million from a loss of $2.3 billion, and diluted earnings per share were 71 cents compared to a loss of $2.12 a year ago. 

The company anticipated tight market conditions to persist in the fiscal third quarter and estimated revenue of about $6.6 billion with a band of $200 million and diluted earnings per share of 17 cents with a band of 7 cents. 

Five Below declined 12.5% to $182.85 after the deep discount retailer reported lower-than-expected revenue and earnings in the fiscal quarter, dominated by holiday sales. 

Revenue in the fiscal fourth quarter ended February 3 increased 19.1% to $1.34 billion from $1.12 billion, net income rose to $202.2 million from $171.3 million, and diluted earnings per share rose to $3.65 from $3.02 a year ago. 

Net sales in the 53rd week were $48.1 million and represented approximately $0.15 cents in diluted earnings per share. 

The company also estimated weaker-than-anticipated revenue and earnings in the fiscal first quarter and full year. 

Net sales in the fiscal first quarter are expected to range between $826 million and $846 million, net income between $32 million and $38 million, and diluted earnings per share between 58 cents and 69 cents. 

The company's guidance is based on comparable sales to increase between flat and 2%. 

For the full year of fiscal 2024, net sales are estimated in the range of $3.97 billion and $4.07 billion, net income between $318 million and $346 million, and diluted earnings per share between $5.71 and $6.22. 

Darden Restaurants declined 5.9% to $164.32 after the owner of Olive Garden and other chains reported weaker-than-expected revenue and earnings in its latest quarter. 

Revenue in the fiscal third quarter increased 6.8% to $2.97 billion from $2.79 billion, net income rose to $312.9 million from $286.6 million, and diluted earnings per share advanced to $2.60 from $2.34 a year ago. 

The total sales increase was driven by sales from the addition of 79 company-owned Ruth's Chris Steak House restaurants and 53 other net new restaurants, partially offset by a blended same-restaurant sales decrease of 1.0%.

The company estimated full-year revenue of $11.4 billion and diluted earnings per share between $8.80 and $8.90. 

The company's board of directors declared a quarterly cash dividend of $1.31 per share payable on May 1 to shareholders on record on April 10. 

The retail chain in the quarter repurchased 0.2 million shares for $33 million, and the company's board authorized a new share repurchase plan of $1 billion. 

Accenture dropped 6.5% to $356.50 after the information services provider's revenue outlook outweighed earnings in the fiscal second quarter. 

Revenue in the second quarter was flat at $15.8 billion, net income increased to $1.7 billion from $1.55 billion, and diluted earnings per share rose to $2.63 from $2.39 a year ago. 

New bookings for the quarter were $21.6 billion, with consulting bookings of $10.5 billion and managed services bookings of $11.1 billion. 

The company declared a quarterly cash dividend of $1.29 per share payable on May 15 to shareholders on record on April 18. 

During the quarter, the company repurchased or redeemed 3.8 million shares for a total of $1.3 billion, and about $4.6 billion were still available under the stock repurchase plan as of February 29. 

The company guided fiscal third quarter revenue between $16.25 billion and $16.85 billion, falling between negative 1% and positive 3% when measured in local currency from a year ago. 

The company also estimated annual revenue growth to be in the range of 1% to 3%, compared to a previous estimate between 2% and 5%, assuming no impact of foreign currency translation on its results.