U.S. Movers: American Airlines, Chipotle Mexican Grill, ServiceNow, Southwest Airlines

Scott Peters
25 Jul, 2024
New York City

Southwest Airlines increased 2.4% to $27.25 after the regional airline reported better-than-expected second-quarter results. 

Total operating revenue increased 4.5% to $7.4 billion from $7.0 billion, net income plunged 46% to $367 million from $683 million, and diluted earnings per share dropped to 58 cents from $1.08 a year ago. 

The airline warned that its revenue per average seat mile may fall and nonfuel costs may jump by as much as 13% in the current quarter from a year ago. 

American Airlines Group rose 1.4% to $10.32 after the international carrier issued a cautious outlook for the current quarter, citing lower fares because of overcapacity. 

Total operating revenue in the second quarter increased 2% to $14.3 billion from $14.1 billion, net income plunged 46% to $717 million from $1.3 billion, and diluted earnings per share fell to $1.01 from $1.88 a year ago. 

The company guided diluted earnings per share in the third quarter to be breakeven and in the full year to range between 70 cents and $1.30. 

Chipotle Mexican Grill decreased 2% to $50.77 after the restaurant chain operator reported quarterly results that exceeded market expectations. 

Revenue in the quarter increased 18% to $3.0 billion from $2.5 billion, net income advanced to $455.6 million from $341.7 million, and diluted earnings per share rose 32% to 33 cents from 25 cents a year ago. 

Comparable same-store sales increased 11.1%, and the company opened 52 new stores in 46 locations and one international licensed restaurant. 

The company reiterated full-year comparable restaurant same-store sales to increase in the mid- to high-single-digit range and open between 285 and 315 stores. 

During the second quarter, the company repurchased $151.4 million of stock at an average price per share of $63.52. 

As of June 30, $647.7 million was available under share repurchase authorizations, including an additional $400 million in authorized repurchases approved by the Board on June 5. 

ServiceNow soared 13.4% to $832.03 after the company reported solid second-quarter results. 

Total revenue increased 22% to $2.6 billion from $2.2 billion, net income declined to $262 million from $1.04 billion, and diluted earnings per share fell to $1.26 from $5.08 a year ago. 

In the quarter a year ago, the company received a one-time tax benefit of $870 million. 

The company reported 88 transactions over $1 million in net new annual contract revenue, or ACV, in Q2 2024, a 26% jump from a year ago, adding to the company's large backlog. 

The remaining performance obligations, or RPO, increased 31% from a year ago to $18.6 billion.

The company revised its subscription revenue guidance to a range of $2.66 billion to $2.67 billion, from a prior range of $2.525 billion to $2.530 billion.