Victoria’s Secret New Guidance

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Victoria’s Secret New Guidance

Shares of Victoria’s Secret (NYSE: VSCO) jumped 3.08% in after-hours trading on Wednesday after the retailer disclosed a financial guidance update.

Details: The company now estimates third-quarter operating income to be on the high end of its previously issued guidance of $10 million to $40 million. Earnings are also expected to be on the high end of $0.00 to $0.25 per share.

Not So Fast: Despite the increased revenue guidance and earnings from Victoria’s Secret, the company still expects a net sales decline in the high single-digit range.

Big Day: Victoria’s Secret will host its investors and analysts meeting today to discuss its growth strategy.

Stock Price: The stock price is down 42% this year, but shares have started to stabilize in the last 30 days or so.

Final Thoughts: Victoria’s Secret deserves credit for growing operating income and earnings while expecting a sales drop.

Notables

Notable Earnings Today: Taiwan Semiconductor (NYSE: TSM), Delta Air Lines (NYSE: DAL), BlackRock (NYSE: BLK), Domino’s Pizza (NYSE: DPZ), Walgreens Boots Alliance (Nasdaq: WBA), Commercial Metals (NYSE: CMC), Fastenal (Nasdaq: FAST), Progressive (NYSE: PGR), Theratechnologies (Nasdaq: THTX), The Valens Company (Nasdaq: VLNX).

Notable IPOs Today: Spring Valley Acquisition Corp. II Unit (Nasdaq: SVIIU), American Century Short Duration Strategic Income ETF (Nasdaq: SDSI), Invesco NASDAQ Future Gen 200 ETF (Nasdaq: QQQS).

Notable Equity Crowdfunding Campaigns Ending Today: Zipinmail (StartEngine), Pencilish Animation Studios (StartEngine), Zeleno (SMBX), Toolbox Pilates Art Studio (SMBX).

Notable Economic Events Today: Jobless Claims (8:30 a.m. ET), CPI / Core CPI (8:30 a.m. ET), Crude Oil Inventories (11:00 a.m. ET).

Applied Materials Sees China Export Problem

Photo by Li Yang / Unsplash

Shares of Applied Materials (Nasdaq: AMAT) dropped 0.61% in after-hours trading on Wednesday after the tech company revised its business outlook.

Details: Applied Materials cut its fourth-quarter net sales by about $400 million, plus or minus $150 million, and now expects its earnings per share to be in the range of $1.54 to $1.78 instead of the prior range of $1.82 to $2.18.

China Problems: The company blames new export regulations that the U.S. set this week for semiconductor technology sold in China.

Final Thoughts: This is certainly bad for Applied Materials. Other companies in the same space could also feel similar pain.

Equity Crowdfunding Spotlight: SuperBetter

Briefly describe your business. SuperBetter is a digital education and mental well-being company. We empower youth mental health by using the psychology of gameplay in all of life. Over 1 million people have played SuperBetter to build skills, overcome obstacles and achieve goals.

What are the terms of the investment for your campaign? Investors receive a Crowd SAFE with an $8 million valuation cap. See Republic for details.

What makes your startup special? The World Economic Forum named SuperBetter 1 of 14 Top Innovators globally in youth mental health. Studies show that playing SuperBetter increases resilience and mental health. New features make SuperBetter a tool for teachers, therapists, and families.

Trends to Watch

Staying the Course: Fed officials expect higher rates to stay in place, meeting minutes show (CNBC)

Meme No More: AMC stock sinks to pre-‘meme stock’ levels as B. Riley slashes price target by 32% (MarketWatch)

What Bitcoin May Need: US Consumer Price Index for September Could Provide Push for Bitcoin to Break Out of Its Recent Range (CoinDesk)

Can't Stop Pepsi: PepsiCo Defies Fears of Consumer Slowdown With Strong Earnings and Forecast (The New York Times)

Sound of Music: TikTok Parent ByteDance Plans Music-Streaming Expansion (The Wall Street Journal)

Victoria’s Secret New Guidance