U.S. Movers: Cognizant, Costco, Toyota Motor, Yum Brands

Scott Peters
06 Feb, 2025
New York City

Costco Wholesale Corp. gained 2.1% to $1,042.9 after the wholesale retailer reported strong January 2025 sales.

Net sales increased 9.2% to $19.51 billion from $17.87 billion a year ago.

Comparable sales in January jumped 7.5%, and e-commerce sales climbed 13.6% from a year earlier.

Excluding the changes in gasoline prices and foreign exchange, comparable sales increased 9.8%, and e-commerce sales jumped 15.2% year-over-year.

Yum! Brands Inc. gained 2.3% to $134.25 after the fast food chain reported rising Taco Bell, KFC, and Pizza Hut sales in the fourth quarter ending in December, but earnings declined.

Revenue surged 16% to $2.36 billion from $2.04 billion, net income fell 9% to $423 million from $463 million, and earnings per diluted share dropped 8% to $1.49 from $1.62 a year ago.

Same-store sales worldwide rose 1% in the fourth quarter ending in December, led by Taco Bell sales with a 5% increase, while Pizza Hut same-store sales declined 1%, and KFC remained flat.

The company swung to an operating profit of $2 million in the Habit Burger & Grill division, compared to a loss of $10 million a year ago.

Yum! The brand's board approved a 6% increase in the quarterly cash dividend to 71 cents from 67 cents per share, payable on March 7 to shareholders of record on February 21.

Toyota Motors Corp. gained 4.1% to $195.35 after the passenger car manufacturer posted improved sales for the nine-month period from April to December 2024, driven by higher demand for its hybrid electric vehicles.

Revenue in the period increased to ¥35.67 trillion from ¥34.02 trillion, and net income jumped to ¥4.1 trillion from ¥3.95 trillion a year ago.

Sales in Japan and North America decreased, but in Europe and Asia, they increased.

For the fiscal year ending on March 31, Toyota estimated revenues of ¥47 trillion, compared to its previous forecast of ¥46 trillion.

Net income is seen at ¥4.52 trillion, compared to the company’s previous forecast of ¥3.57 trillion.

Toyota estimated vehicle sales in 2025 to decline to 10.85 million from 11.09 million units last year.

The company proposed to repurchase up to 530 million shares for a maximum of ¥1.2 trillion from May 9, 2024 until April 30, 2025.

Cognizant Technology Solutions Corp dropped 1.9% to $82.01 after the IT consulting and outsourcing company reported lower-than-expected profit in the fourth quarter ending in December.

Revenue increased to $5.08 billion from $4.76 billion, net income declined to $546 million from $558 million, and earnings per diluted share fell to $1.10 from $1.11 a year ago.

Order bookings in the fourth quarter increased 11% from a year ago.

The company’s health sciences segment surged 10.4% to $1.54 billion, products and resources was up 11.3% to $1.29 billion, financial services jumped 2.8% to $1.43 billion, and communications, media, and technology was up 0.4% to $811 million.

Sales in North America jumped 3.1%, while U.K. sales were down 5.1%.

For the current quarter, the company estimated revenue growth of 6.5% to 8% in the range of $5.0 billion to $5.1 billion in constant currency.

Full-year 2025 revenue is expected to increase by 3.5% to 6% from $20.3 billion to $20.8 billion, and earnings per share are expected to be between $4.90 and $5.06.

Cognizant repurchased 1.8 million shares for $140 million during the fourth quarter, and as of December 31, there was $1.2 billion remaining under its share repurchase authorization.

The company proposed a quarterly cash dividend increase of 3% to 31 cents per share, payable on February 26 to shareholders of record on February 18.