Today is Wednesday, March 29, 2023.
New to this newsletter? Sign up here.
Lululemon Holiday Season Sales
A strong holiday sales quarter coupled with a strong forecast lifted shares of Lululemon Athletica (Nasdaq: LULU) by 13.12% in after-hours trading on Tuesday.
Financials: Lululemon reported earnings of $4.40 per share in the past quarter and revenue of $2.8 billion; both were better than expected.
Outlook: Lululemon expects earnings per share in the current quarter to be between $1.93 to $2.00, and revenue to grow by 18%. Both are positive projections.
But: Inventories at the end of 2022 grew by 50%. As a result, the gross margin and operating margin decreased year-over-year.
Stock Price: The stock is down about 6% in the last 12 months, but is up 3% in the last 30 days.
Final Thoughts: These strong results erased any previous fears that investors had. Even though Lululemon does have some macroeconomic concerns, and the inventory levels need to be addressed, the value of the stock is still good.
Notable Earnings Today: RH (NYSE: RH), Paychex (Nasdaq: PAYX), Cintas (Nasdaq: CTAS), Concentrix (Nasdaq: CNXC), Bluebird bio (Nasdaq: BLUE), Sprinklr (NYSE: CXM), Conn's (Nasdaq: CONN), Xos (Nasdaq: XOS), UniFirst (NYSE: UNF), Planet Labs (NYSE: PL), Kingsoft Cloud Holdings (Nasdaq: KC), H.B. Fuller (NYSE: FUL), Minim (Nasdaq: MINM), Semtech (Nasdaq: SMTC), Redwire (NYSE: RDW), Franklin Covey (NYSE: FC), Sharecare (Nasdaq: SHCR), Dyadic International (Nasdaq: DYAI), Stronghold Digital Mining (Nasdaq: SDIG), Verint Systems (Nasdaq: VRNT), Sportsman's Warehouse (Nasdaq: SPWH).
Notable IPOs Today: Hongli Group Inc. Ordinary Shares (Nasdaq: HLP), Trailblazer Merger Corporation I Unit (Nasdaq: TBMCU), Altamira Therapeutics Ltd. Warrant (Nasdaq: CYTOW).
Notable Equity Crowdfunding Campaigns Ending Today: Canopy (StartEngine), Brooklyn Gin (Republic).
Notable Economic Events Today: Pending Home Sales (10:00 a.m. ET), Crude Oil Inventories (10:30 a.m. ET).
Micron’s Biggest Loss Ever
Photo by Maxence Pira / Unsplash
Micron Technology (Nasdaq: MU) ticked up by 1.05% in after-hours trading on Tuesday after posting mixed financial results.
Financials: Micron reported a loss of $1.91 per share in the past quarter and revenue of $3.69 billion; both were below estimates. It was Micron’s biggest loss ever.
Details: During what the company called “a challenging market environment,” Micron’s sales dropped. The company wrote off $1.43 billion in inventory. Cash on hand dropped from $943 million to $343 million.
But: Micron says that inventories are getting better and it is confident in long-term demand.
Final Thoughts: Down 27% in the past 12 months, Micron’s struggles reflect the challenges of other companies in the chip space.
Cal-Maine Surges Thanks to Egg Prices
Cal-Maine Foods (NASDAQ: CALM) jumped by 3.74% in after-hours trading on Tuesday after the company reported strong financial results.
Financials: Cal-Maine reported earnings of $6.62 per share in the past quarter and revenue of $997.5 million; both were better than expected.
Final Thoughts: Cal-Maine benefited from past higher egg prices. But today, egg price increases are starting to level off.
Connect to clean energy in two mins (Sponsored)
Whether you rent or own your home, Arcadia can help you power it with 100% clean energy for just $5/month — no installations, long-term commitments, or changes to your current electricity provider.
When you enter your zip code and utility company, Arcadia can check if there is a community solar farm near you. Connect to it for no extra cost and receive guaranteed monthly savings on your power bill.
Sign up to become an Arcadia member today, and get a welcome gift of $10 toward your power bill.
Trends to Watch
March Madness: Bitcoin Layer 2 Stacks' Token a Top Performer in March (CoinDesk)
Big Win: Dave & Buster's stock trades higher after record revenue tally (Seeking Alpha)
Apple’s Next Big Thing: Apple Pay Later is finally available in the US, but only with an invite (Engadget)
Thank you for reading!
Forward to a friend and tell them to sign up here.
Want more investing tips? Listen to the podcast.
Show Your Support: Buy Me a Coffee.
Questions or comments? Hit reply to reach out.