U.S. Movers: American Airlines, Chipotle Mexican Grill, Meta Platforms, Norfolk Southern, Southwest Airlines

Scott Peters
25 Apr, 2024
New York City

Southwest Airlines plunged 7% to $27.0 after the regional airline reported a wider-than-expected loss in the first quarter, and the company said it anticipates fewer plane deliveries from Boeing. 

Revenue in the first quarter increased 11% to $6.3 billion, net loss expanded to $231 million from $159 million, and diluted loss per share increased to 39 cents from 27 cents a year ago. 

The airline said it expects to receive a total of 20 Boeing 737 Max 8 airplanes compared to its previous estimate of 46 planes in 2024, and the company plans to delay retiring some of its older planes and look for ways to cut costs. 

American Airlines Group rose 5.2% to $14.63 after the company reported better-than-expected quarterly results. 

Revenue in the first quarter increased 3.1% to $12.6 billion from $12.2 billion; the company swung to a net loss of $312 million compared to a profit of $10 million; and diluted earnings per share were a loss of 48 cents compared to a profit of 2 cents. 

The company said it lowered its debt by $950 million in the first quarter, and it is on track to lower its debt by $15 billion by 2025. 

The company estimated its adjusted diluted earnings per share for the second quarter between $1.15 and $1.45 and for the full year between $2.25 and $3.25. 

Meta Platforms plunged 14.5% to $421.80 after the social networking site operator projected weaker-than-estimated revenue. 

Revenue in the first quarter increased 27% to $36.5 billion from $28.6 billion, net income rose 117% to $12.4 billion, and diluted earnings per share advanced to $4.71 from $2.20 a year ago. 

In the quarter, the company repurchased $14.64 billion of its common stock and paid $1.27 billion in dividends. 

The company guided second-quarter revenue to range between $36.5 billion and $39 billion and revised its full-year revenue to a range between $96 billion and $99 billion compared to the previous estimate of $94 billion and $99 billion. 

Chipotle Mexican Grill rose 3% to $3,026.0 after the restaurant chain operator reported better-than-expected quarterly results. 

Revenue in the first quarter increased 14.1% to $2.7 billion from $2.4 billion, net income rose to $39.2 million from $291.6 million, and diluted earnings per share advanced to $13.01 from $10.50 a year ago. 

Same-store sales increased by 7%, driven by a 5.4% increase in store traffic and a 1.6% rise in average sales. 

The company estimated full-year comparable sales to increase in the mid- to high-single-digit range, and the restaurant chain plans to open between 285 and 315 stores, with 80% having the drive-through Chipotlane. 

Norfolk Southern edged lower by 5% to $236.22 after the company reported mixed quarterly results. 

Total railway operating revenue in the first quarter decreased 4% to $3 billion from $3.1 billion, net income plunged 89% to $53 million from $466 million, and diluted earnings per share dropped to 23 cents from $2.04 a year ago. 

The company recognized $592 million and $387 million in expenses in the first quarter of 2024 and 2023, respectively, related to the derailment incident on February 3, 2023, in East Palestine, Ohio. 

The expense recorded in the first quarter of 2024 includes $108 million in insurance recovery.