Visits: 3
Customers walk with Foot Locker shopping bags on the Third Street Promenade in Santa Monica, California.
Patrick T. Fallon | Bloomberg | Getty Images
Check out the companies making headlines in midday trading on Friday:
Alibaba — Alibaba stock dropped about 4.5% amid escalating tensions between the U.S. and China. Earlier this week, the U.S. Senate passed a bill by unanimous consent that could result in the delisting of Chinese companies like Alibaba. Friday’s decline came despite a stellar earnings report from the Chinese e-commerce giant. Alibaba beat estimates on both the top and bottom lines for its fiscal fourth quarter, and topped $1 trillion in gross merchandise volume for the first time due to a surge in demand amid the coronavirus pandemic.
Roku — Streaming platform Roku fell about 4.5% following a downgrade to equal weight from overweight at Stephens. The reason for the hold rating centered around Roku’s partnership with Smart TV company TCL. Stephens said although the partnership is good from a market perspective, there is not much upside for Roku. “We don’t think it can get much better from here for Roku,” the analyst said.
Foot Locker — Shares of Foot Locker tumbled nearly 12% after the athletic footwear and apparel retailer posted disappointing quarterly results. The company lost an adjusted 67 cents per share for its latest quarter, wider than the 25-cent loss that Wall Street was expecting, according to Refinitiv. Foot Locker also temporarily suspended its quarterly dividend amid the downturn brought on by the pandemic.
Deere — The equipment maker gained more than 1% after the company beat top- and bottom-line expectations for the second quarter. Deere earned $2.11 per share, compared with estimates of $1.62, while revenue came in at $8.22 billion, which was ahead of estimates but lower than in the same quarter last year. The company also said that it expects global equipment sales to drop between 30% and 40% this year due to the pandemic.
Lululemon Athletica — Stock of the athletic retailer jumped more than 1% to a new all-time high after the company said that it has reopened 150 stores across North America, Europe, Asia, New Zealand and Australia. The retailer said it has plans to reopen an additional 200 stores in the next two weeks.
Deckers Outdoor — The footwear stock jumped more than 6% after reporting higher than expected revenue for its fiscal fourth quarter. The company reported $374.9 million of revenue for the quarter, while analysts expected $355.4, according to Refinitiv. Net sales of the company’s Hoka One One and Teva brands both increased during the quarter.
Hewlett Packard — Shares of the technology company dropped roughly 12% after reporting quarterly results that missed expectations. The company reported adjusted earnings per share of 22 cents and $6.01 billion in revenue for its fiscal second quarter. Wall Street analysts were looking for 29 cents of per-share earnings and $6.30 billion of revenue, according to Refinitiv. The company’s CEO said in a statement that the backlog of orders was twice as large as normal due to the pandemic.
e.l.f. Beauty — Shares of the cosmetics company rallied more than 16% on the back of better-than-expected results for its fiscal fourth quarter. E.l.f. earned 6 cents per share on revenue of $74.7 million. Analysts polled by FactSet expected a profit of 5 cents a share on sales of $67 million. “Given our fiscal 2020 results and execution of our five strategic imperatives, we believe we are well positioned relative to the category to navigate the challenges posed by COVID-19,” CEO Tarang Amin said in a statement.
— CNBC’s Fred Imbert, Pippa Stevens, Maggie Fitzgerald, Jesse Pound and Yun Li contributed reporting.
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