Editor
On February 28, 2019, the Cisco logo was shown during the Mobile World Congress in Barcelona, Spain.
Getty Images | NurPhoto
Check out the businesses generating news during Thursday’s lunchtime trading session.
Harley-Davidson Motorcycles – The motorbike maker’s stock dropped more than 8% after the business said that most vehicle assembly and shipping will be halted for two weeks owing to a components problem with a supplier. The ban does not apply to its LiveWire subsidiary.
Cisco — The network business’s stock plunged 13% after the company reported lower quarterly revenue than analysts anticipated and forecasted an unexpected sales fall in the upcoming quarter. Cisco said the crisis with Russia and Ukraine, as well as Covid-19 lockdowns in China, had an effect.
Union Pacific, CSX, and Norfolk Southern — Citi downgraded CSX, Norfolk Southern, and Union Pacific from buy to neutral, putting pressure on rail stocks. In a letter to clients, Citi argued that an economic downturn would restrict the sector’s future growth. CSX and Norfolk Southern both lost more than 4% of its value, while Union Pacific lost about 5%.
Kohl’s – Even after the firm reported a big profits shortfall for the fiscal first quarter and lowered its profit and sales estimate for the year, the retail stock surged 3%. Kohl’s said it expects final and fully funded offers from possible purchasers in the coming weeks, as the store faces increased pressure to sell from activists.
Bath & Body Works — The personal care goods retailer’s stock dropped 8% after the business lowered its full-year profits outlook owing to inflation and more investments. However, Bath & Body Works’ current quarter earnings and sales were more than predicted.
Under Armour — The sportswear company’s stock dropped more than 10% when CEO Patrik Frisk announced his resignation, effective June 1. Following the announcement, Morgan Stanley lowered Under Armour to equal weight from overweight.
Goose of Canada — The garment firm posted better-than-expected fourth-quarter earnings, causing its stock to soar about 10%. According to Refinitiv’s poll of analysts, the business exceeded earnings per share and sales expectations. Canada Goose’s gross profit margin increased year over year.
Wholesaler BJ’s — Following a better-than-expected first-quarter performance, the retail stock jumped 12 percent. On $4.5 billion in sales, BJ’s earned an adjusted 87 cents per share. Refinitiv polled analysts, who predicted 72 cents in profits per share on $4.24 billion in sales. Comparable sales increased more quickly than planned.
Target — The retailer’s shares fell another 5% after losing over 25% on Wednesday after its results release. Target has been downgraded by Stifel from buy to hold.
Synopsys – After announcing its fiscal second-quarter earnings, the packaged software business surged more than 11%, making it one of the strongest performers in the S&P 500. On $1.28 billion in sales, Synopsys earned an adjusted $2.50 per share. FactSet’s StreetAccount polled analysts, who predicted $2.37 earnings per share on $1.26 billion in sales.
