BJ’s Gains as Retailer Posts Q4 Profit Beat, Revenue Miss Amid ‘Macro-Driven Uncertainty’
1 hr 3 min ago
BJ’s Wholesale Club (BJ) shares climbed over 6% Thursday morning as the retailer reported fourth-quarter earnings that beat estimates, though its revenue missed expectations amid “macro-driven uncertainty.”
The company posted quarterly net sales of $5.36 billion, up 8.7% over the prior-year period—attributable in part to an extra week of sales and six new locations opened in the quarter. However, revenue missed analyst estimates as comparable club sales declined 0.4% from the fourth quarter of 2022.
BJ’s recorded quarterly net income of $145.9 million, or $1.08 a share. Its adjusted EPS of $1.11 beat estimates.
BJ’s shares were up 6.6% at $76.89 late in the morning Thursday. They’ve gained about 15% so far this year.
Wegovy Maker Novo Nordisk Stock Surges on Promising Trial of Obesity Pill Amycretin
1 hr 55 min ago
The American depositary receipts (ADRs) of Novo Nordisk A/S (NVO) gained more than 8% in early trading Thursday after the Danish maker of Ozempic and Wegovy released promising data on an experimental daily pill aimed at treating obesity.
The highly anticipated amycretin pill reportedly showed higher weight loss than Novo Nordisk’s popular Wegovy treatment.
In a Phase I trial, amycretin pills helped participants lose 13.1% of their weight after 12 weeks versus a weight loss of 6% in a comparable Wegovy trial, the company said at an investor meeting.
The phase 2 trial—where the focus is on the drug’s effectiveness—is set for the second half of 2024, with results expected in early 2026, the company reportedly said.
Novo Nordisk ADRs were up 8.3% at $135.20, a record high, about an hour into Thursday’s session. The stock has gained 88% in the past 12 months and 31% since the start of the year alone.
Victoria’s Secret Stock Sinks After Issuing Soft Sales Outlook
2 hr 35 min ago
Victoria’s Secret (VSCO) shares slumped Thursday morning after the lingerie retailer issued a cautious sales outlook amid soft apparel demand in the North American market.
The company said it sees fiscal year 2024 net sales of about $6 billion, falling short of the $6.19 billion figure expected by Wall Street. For the first quarter, Victoria’s Secret projects sales to decrease by mid-single digits from last year’s Q1 sales of $1.407 billion. By comparison, analysts had forecast sales in the period of $1.39 billion.
The intimate apparel maker cited a subdued North American outlook for its cautious guidance. “As we look into the new year, we recognize the broader intimates market in North America has been down for four consecutive quarters and we are planning the business appropriately conservative in the near term,” Victoria’s Secret CEO Martin Waters said in the company’s earnings statement.
Despite a bullish golden cross pattern forming on the Victoria’s Secret chart in late December, the share price has traded mostly sideways since that time. Amid earnings-related weakness, it’s worth keeping an eye on a key zone of support between $20 and $21.50. A close below this important technical area could potentially open the door to a retest of the stock’s record low of $13.62.
Victoria’s Secret stock fell 29.2% to $18.14 in early trading Thursday.
Stocks Making the Biggest Moves Premarket
3 hr 17 min ago
Gains:
- American Eagle Outfitters Inc. (AEO): Shares of the apparel retailer jumped 11% after its holiday quarter sales and earnings topped Wall Street’s estimates.
- Novo Nordisk A/S (NVO): Shares of the Danish pharmaceutical giant rose more than 7% after it released promising results from a trial of an experimental weight loss pill.
- Kroger Co. (KR): Shares of the grocery chain rose more than 4% after reporting better-than-expected quarterly earnings and saying it would continue to pursue its contested merger with rival Albertsons (ACI).
Losses:
- Victoria’s Secret & Co. (VSCO): Shares of the lingerie retailer slumped more than 26% after it offered disappointing current-quarter sales guidance amid soft North American demand.
- ADT Inc. (ADT): Shares of the home security company fell more than 9% after it announced a secondary public stock offering.
- BJ’s Wholesale Club Holdings Inc. (BJ): Shares of the membership warehouse retailer slipped about 2% after it offered guidance at the low end of analysts’ estimates, overshadowing its better-than-expected fourth-quarter earnings.
Stock Futures Up Ahead of Powell’s Senate Testimony
3 hr 52 min ago
Futures contracts connected to the Dow Jones Industrial Average were up 0.2% in premarket trading on Thursday.
S&P 500 futures gained 0.4%.
Nasdaq 100 futures traded 0.6% higher about an hour before markets opened.
