Dollar Tree, HP, Twitter, Six Flags & more
People walk by a Dollar Tree store on December 11, 2018 in the Brooklyn borough of New York City.
Spencer Platt | Getty Images News | Getty Images
Here are the companies making headlines in midday trading:
HP Inc. — Shares of the tech company plunged more than 11% after it reported lower-than-expected revenue for the fiscal second quarter. HP generated $12.47 billion in sales for the quarter, while analysts were expecting $12.93 billion, according to Refinitiv. JPMorgan also downgraded the stock to neutral from overweight.
Dollar Tree — Shares of the discount retailer surged 11% following its strong earnings thanks to a change on consumer behavior spurred by the Covid-19 pandemic. Dollar Tree reported earnings per share of $1.04 on revenue of $6.29 billion. Analysts polled by FactSet were expecting earnings of 85 cents per share on revenue of $6.14 billion. Same-store sales soared 7%, compared to the estimate of 4.4%. Family Dollar same-store sales jumped 15.5%, compared to the 8.1% forecast.
Abercrombie & Fitch — Shares of the clothing retailer dropped more than 5% on the back of disappointing quarterly results. Abercrombie reported a loss of $3.29 per share on revenue of $485 million. Analysts polled by Refinitiv expected a loss of $1.39 per share on sales of $497 million. Sales in the Asia-Pacific region dropped by more than 50% on a year-over-year basis, while U.S. sales fell over 30%. The company’s Hollister brand also registered revenues that were down 36% from the year-earlier period.
American, United, Delta — Airline stocks fell on Thursday after Delta and American sent letters to employees announcing job reductions. Shares of those companies dropped 1.9% and 4.9%, respectively, while United slid 4%.
Twitter – Shares of Twitter shed 2.5% as the White House attempts to crack down on social media platforms for alleged bias in their content moderation strategies. President Donald Trump is expected to sign an executive order Thursday to push the Federal Communications Commission to tighten its oversight of online publishers. The move came after Twitter began fact-checking some of his tweets.
Six Flags – Shares of Six Flags tanked 8% after Goldman Sachs initiated its coverage on the amusement park with a sell rating. The bank said social-distancing measures would weigh on the amusement park’s fundamentals for the foreseeable future. Six Flags announced its plans for reopening earlier this week, with its Frontier City park in Oklahoma City slated to open with limited capacity on June 5.
Workday – Shares of the software company jumped more than 8% after revenue in the first quarter topped analyst expectations. The company’s adjusted quarterly earnings of 44 cents per share was, however, short of consensus estimates. Workday also lowered its full-year 2021 revenue subscriptions revenue guidance due to the ongoing impact of Covid-19.
Toll Brothers — The homebuilding stock rose more than 4% after the company beat Wall Street expectations for the fiscal second quarter. Toll Brothers reported earnings of 59 cents per share and $1.55 billion in revenue. Analysts surveyed by Refinitiv expected earnings of 45 cents per share and $1.50 billion in revenue.
Boeing — Shares of the aerospace company rose 2.8% as it resumed production of the 737 Max jet. The plane, which was involved in two fatal plane crashes, has been grounded for more than a year as Boeing works to get approval from regulators.
Burlington — Shares of the discount retail jumped more than 3% despite reporting dismal headline earnings results. Burlington reported a loss of $4.76 per share, while analysts were expecting a loss of $1.55 per share, according to FactSet. Still, some analysts on Wall Street looked past the bad numbers. Nomura, which has a buy rating on the stock, said the quarter showed long-term business model is intact and noted that same-stores sales are up in reopened stores. MKM Partners echoed Nomura’s bullish outlook.
— CNBC’s Fred Imbert, Pippa Stevens, Maggie Fitzgerald and Yun Li contributed to this story.