U.S. Movers: American Eagle, Best Buy, Crowdstrike, Dollar General, Nvidia, Salesforce

Scott Peters
29 Aug, 2024
New York City

Semiconductor-related stocks were under pressure after Nvidia's current quarter sales estimate fell short of some analysts high expectations. 

Nvidia, the leading artificial intelligence technology player, and dramatic transformation of the company have attracted worldwide attention, catapulting the company's valuation above one trillion only a few months ago. 

The company's results are now viewed as a proxy for artificial intelligence spending by tech companies and provide critical support for the tech stock rally in 2024. 

Nvidia said revenue in the fiscal second quarter ending in July soared 122% to $30 billion, net income advanced 168% to $16.6 billion from $6.2 billion, and earnings per share rose to 67 cents from 25 cents a year ago. 

The company guided revenue in the current quarter of $32.5 billion, which fell short of some investors lofty expectations. 

Salesforce increased 4.5% to $270.50, and the customer relations management software developer reported better-than-expected fiscal second quarter results. 

In addition, the company said chief financial officer Amy Weaver will step down. 

Crowdstrike Holdings declined 1.3% to $260.78, and the cybersecurity company surpassed revenue and earnings expectations set by analysts. 

Dollar General plunged 26% to $92.38, after the discount store chain operator reported weaker-than-estimated sales and earnings in the latest quarter and slashed its annual outlook. 

Revenue in the second quarter increased 4.2% to $10.2 billion, net income dropped 20.2% to $374.2 million from $468.8 million, and diluted earnings per share decreased 20% to $1.70 from $2.13 a year earlier. 

The retailer lowered its annual sales outlook to between 4.7% and 5.3% from the previous estimate between 6.0% and 6.7%, with the same store sales range between 1.0% and 1.7% compared to the previous range between 2.0% and 2.7%.

The company estimated full-year diluted earnings per share to range between $5.50 and $6.20, lower than the previously estimated range between $6.80 and $7.55. 

Best Buy Company soared 14.2% to $100.45 after the electronics retailer reported better-than-estimated profit and lifted its annual adjusted earnings outlook. 

Net sales in the quarter dropped to $9.29 billion from $9.58 billion, net income in the fiscal fourth quarter increased to $291 million from $274 million, and diluted earnings per share rose to $1.34 from $1.25 a year earlier. 

The company said comparable sales in the quarter decreased 2.3%, compared with a shrink of 6.2% in the period a year earlier. 

The retailer now expects full-year adjusted earnings per share in the range of $6.10 to $6.35, up from the previously estimated range of $5.75 to $6.20. 

American Eagle Outfitters declined 6.6% to $20.26, and the apparel retailer reported weaker-than-estimated sales in the second quarter. 

The retailer said revenue in the second quarter increased 8% to $1.3 billion from $1.2 billion, net income advanced to $77.3 million from $48.5 million, and diluted earnings per share rose to 39 cents from 25 cents a year earlier. 

The company estimated comparable store sales in 2024 to increase between 3% and 4% and operating earnings to range between $120 million and $140 million. 

The young-adult-focused apparel retailer has struggled to lift its store sales as shoppers shift to online, where retailers are struggling with intense price competitions from China-based shopping platforms.