Broadcom's Dividend Increase

And, Lululemon's holiday season sales.

December 08, 2023

Today is Friday, December 8, 2023.

The Early Bird Index today is 61.25.

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Broadcom's Dividend Increase

Semiconductor maker Broadcom (Nasdaq: AVGO) posted strong financial earnings results on Thursday, but the stock still ticked down by 0.57% in after-hours trading.

Financials: Broadcom reported earnings of $11.06 per share in the past quarter and revenue of $9.2 billion; both were better than expected.

Details: Revenue is up 8% thanks to new developments including artificial intelligence (what else is new?).

Outlook: Broadcom expects revenue to reach $50 billion in the next year, which is better than expected.

Powering the Story: It’s another dividend increase from Broadcom. This time the company is offering a 14% dividend increase to $5.25 per share.

Stock Price: Thanks to the 2023 AI craze, Broadcom is up 66% this year.

Final Thoughts: Why did the stock price drop on Thursday? Similar to other AI stocks, investors were just taking some profit off the table.

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Notables

Notable Earnings Today: Hello Group (Nasdaq: MOMO), Johnson Outdoors (Nasdaq: JOUT).

Notable IPOs Today: Themes Generative Artificial Intelligence ETF (Nasdaq: WISE), Themes Cybersecurity ETF (Nasdaq: SPAM), Themes Airlines ETF (Nasdaq: AIRL).

Notable Equity Crowdfunding Campaigns Ending Today: Acme by Full Circle (Honeycomb), Beloved’s Bakery and Cafe (Mainvest), World Tree (Wefunder), Popoca (Wefunder), Crafty Elk (Wefunder), Temecula FC (Wefunder), The Realm Refillery (Honeycomb), Stretch Theory (Honeycomb), Cafe Coco (Honeycomb).

Notable Economic Events Today: Unemployment Rate (8:30 a.m. ET), Nonfarm Payrolls (8:30 a.m. ET), Average Hourly Earnings (8:30 a.m. ET), Labor Force Participation Rate (8:30 a.m. ET), Michigan Consumer Expectations / Sentiment (10:00 a.m. ET), WASDE Report (12:00 p.m. ET).

Lululemon's Holiday Season Sales

Despite posting strong financial results, Lululemon Athletica (Nasdaq: LULU) dropped by 2.62% in after-hours trading on Thursday.

Financials: Lululemon reported earnings of $2.53 per share in the past quarter and revenue of $2.2 billion; both were better than expected.

Details: Revenue is up 19%. The gross margin increased by 110 basis points. And there’s a new $1 billion stock buyback to drive the price up.

Yes, But: Lululemon only expects revenue to grow 14% during the holiday shopping quarter. That is unacceptable for investors, especially given the holiday shopping season.

Stock Price: Lululemon is up 43% this year, including a 13% increase in the last 30 days.

Final Thoughts: The weaker outlook is a big problem for the stock, especially after a good year.

Levi Strauss to Get New CEO

A leadership change to Levi Strauss (NYSE: LEVI) was announced on Thursday, as the company aims to turn around its struggling business.

Details: Michelle Gass, currently the company’s president, will become the new CEO at the end of January. The current CEO, Chip Bergh, plans to retire from the company in April.

Final Thoughts: Levi Strauss is down about 1.5% this year. Bad earnings and weaker sales have hurt the company. Can Gass turn things around?

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