U.S. Movers: Analog Devices, Nvidia, Toll Brothers, Viasat, Urban Outfitters

Scott Peters
22 May, 2024
New York City

Target Corp. declined 8.8% to $142.10 after the retailer reported weaker-than-expected earnings and a decline in sales driven by weakening growth trends in discretionary item sales. 

Consumers limit their purchases of groceries and discretionary items like apparel and home decor. 

Moreover, shoppers are chasing discounts, and relatively high-priced grocery items sold at Target still face competition from discount stores like Walmart, Aldi, Lidl, and other regional discount chains. 

Target has been struggling to convince customers to spend more, as about 20% of its total sales are groceries, unlike 60% of Walmart's sales. 

Total revenues declined 3.1% to $24.5 billion from $25.3 billion, net income dropped 0.8% to $942 million from $980 million, and diluted earnings per share fell to $2.03 from $2.05 a year ago. 

Comparable sales declined 3.7% in the first quarter, reflecting a comparable store sales decline of 4.8%, partially offset by a comparable digital sales increase of 1.4%. 

For the second quarter and for the full year, the company anticipated comparable sales to increase between zero and 2%. 

For the full year, the company reiterated its adjusted earnings per share outlook to be between $8.60 and $9.60.

Urban Outfitters rose 4.2% to $43.0 after the apparel retailer reported better-than-expected sales and earnings in its latest quarter. 

Comparable retail sales increased 4.6%, driven by high single-digit positive sales growth in online sales and low single-digit positive growth in retail store sales. 

Revenue in the first quarter increased 7.6% to record $1.2 billion from $1.11 billion, net income advanced to $61.76 million from $52.8 million, and diluted earnings per share rose to 65 cents from 56 cents a year ago. 

The company did not purchase its shares in the first quarter ending in April 2024 and in the year ending in January 2024, and 19.2 million of the authorized 20.0 million shares are still available under its stock repurchase program. 

Toll Brothers decreased 0.5% to $129.50 after the luxury home builder's quarterly results surpassed market expectations and the company raised its full-year outlook. 

Total fiscal second quarter revenue increased to $2.8 billion from $2.5 billion, net income rose to $481.6 million from $320.2 million, and diluted earnings per share advanced to $4.55 from $2.85 a year ago. 

At the end of the fiscal second quarter in April, the backlog value of homes declined 12% to $7.4 billion, and the backlog of homes fell 6% to 7,093. 

The company raised its estimate of home deliveries in the fiscal third quarter to 2,850 from 2,750 and in the fiscal year to 10,800 from 10,400. 

In the quarter, Toll Brothers repurchased approximately 1.5 million shares at an average price of $120.60 per share, for a total purchase price of approximately $181.2 million.

On March 12, the company also hiked its cash dividend by 10% to 23 cents per share, which was paid on April 19 to shareholders on record on April 5. 

Nvidia Corp. increased 0.6% to $957.50 ahead of the advanced chipmaker's quarterly results after the close of regular trading sessions. 

Nvidia has jumped 98% in the year so far and soared 205% in the last year of trading. 

Viasat declined 10.4% to $16.82 after the satellite communication service provider reported a loss of 80 cents in its fiscal fourth quarter. 

Revenue in the fiscal fourth quarter ending in March surged to $1.15 billion from $666 million, net income swung to a loss of $100.3 million from a profit of $1.2 billion, and diluted earnings per share were a loss of 80 cents compared to a profit of $15.56 a year ago. 

Last year's net income in the fiscal fourth quarter included an after-tax gain of $1.26 billion from discontinued operations, and net income excluding one-time gains was a loss of $58.6 million.

Analog Devices increased 5.4% to $228.32 after the company reported better-than-expected quarterly results in the fiscal second quarter ending in April.

Revenue in the quarter decreased 34% to $2.2 billion from $3.3 billion, net income decreased to $302.2 million from $977.6 million, and diluted earnings per share fell to 61 cents from $1.92 a year ago. 

The company's board of directors declared a quarterly cash dividend of 92 cents per share payable on June 17 to shareholders of record at the close of June 4. 

The company estimated fiscal third quarter revenue of $2.27 billion with a band of $100 million, an increase of 20.1% from a year ago. 

The company also estimated earnings per share of 70 cents with a band of 10 cents and adjusted earnings per share of $1.50 with a band of 10 cents.