U.S. Movers: American Airlines, Abercrombie & Fitch, Cava, Chewy, ConocoPhillips, Dicks' Sporting Goods

Scott Peters
29 May, 2024
New York City

Chewy jumped 6.5% to 18.0 after the online pet food store reported better-than-expected fiscal first quarterly results. 

Revenue in the fiscal first quarter increased to $2.9 billion from $2.8 billion, net income to $67.3 million from $22.8 million, and diluted earnings per share advanced to 15 cents from 5 cents a year ago. 

Chewy also announced today that its board has authorized a share repurchase program of up to $500 million of its Class A and/or Class B common stock.

The company's active customer base in the quarter edged slightly lower to 20.0 million from 20.4 million a year ago, and net sales per active customer increased to $562 from $513 a year ago. 

The company estimated net sales in the fiscal second quarter to range between $2.84 billion and $2.86 billion, an increase of between 2% and 3% from a year ago. 

The company estimated fiscal year 2024 sales to range between $11.6 billion and $11.8 billion, an increase of between 4% and 6% from the previous year. 

Marathon Oil jumped 8.3% to $28.64 after the company agreed to be acquired by ConocoPhillips for $22.5 billion, and assuming the company's $5.4 billion of debt. 

Marathon Oil shareholders will receive 0.2550 shares of ConocoPhillips common stock for each share of Marathon Oil common stock, representing a 14.7% premium to the closing share price of Marathon Oil on May 28, 2024, and a 16.0% premium to the prior 10-day volume-weighted average price.

The deal is expected to be immediately accretive to earnings to ConocoPhillips shareholders. 

After the transaction, the third-largest U.S. oil company plans to increase its dividend by 34% to 78 cents per share starting in the fourth quarter of 2024. 

Upon closing of the transaction, ConocoPhillips expects share buybacks to be over $20 billion in the first three years, with over $7 billion in the first full year, at recent commodity prices.

The oil industry has experienced a wave of transactions in recent months. Exxon Mobil agreed to acquire Pioneer Natural Resources for $60 billion, and Hess' shareholders approved the merger of the company with Chevron. 

Dick's Sporting Goods jumped 10.2% to $214.75 after the specialty retailer reported better-than-expected quarterly earnings and comparable sales rose 5.3%. 

Increase in customer visits, more customer transactions, and a larger average ticket size drove sales higher. 

The specialty retailer said revenue in the quarter ending on May 4 rose 6% to $3.02 billion from $2.84 billion, net income fell to $275 million from $303 million, and diluted earnings per share eased to $3.30 from $3.40 a year ago. 

The retailer estimated full-year earnings per share to range between $13.35 and $13.75, higher than the previous estimate between $12.85 and $13.25. 

Abercrombie & Fitch soared 10.4% to $170.59 after the company reported record first-quarter sales. 

Revenue in the quarter ending on May 4 rose 22.1% to $1.02 billion, driven by an Abercrombie sales increase of 31.1% to $571.1 million and Hollister sales growth of 12.3% to $449.2 million. 

Net income in the quarter advanced to $113.9 million from $16.6 million, and diluted earnings per share rose to $2.14 from 32 cents a year ago, respectively. 

Cava Group dropped 8.5% to $75.50 after the salad restaurant chain reported better-than-expected quarterly results. 

The stock declined after the Mediterranean fast-casual restaurant chain operator reported a decline in customer traffic. 

Revenue increased 30.3% to $256.3 million, driven by a 2.3% increase in same-store sales. The sales increase was also driven by a 3.5% increase in menu prices, offset by a 1.2% decrease in store traffic.

Net income swung to a profit of $14.0 million from a loss of $2.1 million, and diluted earnings per share were 12 cents compared to a loss of $1.30 a year ago. 

The company estimated new store openings between 50 and 54 from the previous estimate between 48 and 52, and the same store sales growth range between 4.5% and 6.5% from the previous estimate between 3.0% and 5.0%. 

American Airlines Group declined 14.5% to $11.47 after the company said in a regulatory filing that it plans to slow its capacity growth in the second half and that its Chief Commercial Officer, Vasu Raja, will depart the airline in June. 

The company lowered its adjusted operating margin guidance by 1 percentage point to between 8.5% and 10.5% from the previous estimate of between 9.5% and 10.5%. 

The airline also lowered its fiscal second-quarter adjusted earnings per share to between $1.0 and $1.15 from the previous estimate of between $1.15 and $1.45. 

The airline said its capacity growth in the second quarter will slow to 3.5% from 8.5% in the first half of fiscal 2024.