adminRoss Stores Shares Rise Despite Sluggish Sales
1 hr 9 min ago
Shares of Ross Stores (ROST) rose Friday morning as the discount retailer’s earnings came in better than expected.
The company reported $488.8 million in profits for the third quarter on $5.07 billion in sales. Analysts had expected $459.8 million in profits on a slightly higher $5.14 billion in sales, according to estimates compiled by Visible Alpha.
“We are disappointed with our third quarter sales results as business slowed from the solid gains we reported in the first half of 2024," CEO Barbara Rentler said. "Although our low-to-moderate income customers continue to face persistently high costs on necessities pressuring their discretionary spending, we believe we should have better executed some of our merchandising initiatives."
Ross recorded 1% comparable store sales growth compared to the same time last year, lower than the 2.2% growth analysts expected. The company said the impact of unseasonably warm weather into early fall and hurricanes in the southern U.S. also negatively impacted sales in the quarter.
The company said it expects 2% to 3% comparable sales growth in the fourth quarter, and lifted its projected full-year earnings per share (EPS) range to between $6.10 and $6.17, up from $6.00 to $6.13 previously.
Ross shares were up 3.5% in recent trading. The stock has gained about 7% since the start of 2024, substantially lagging the S&P 500's gain of 25% during the period.
–Aaron McDade
Intuit Shares Fall on Disappointing Outlook
1 hr 36 min ago
Intuit (INTU) shares were losing ground Friday morning after the company reported better-than-expected earnings but issued guidance that disappointed investors.
The TurboTax and Credit Karma parent said fiscal first-quarter revenue rose 10% to $3.3 billion, above the analyst consensus from Visible Alpha. Net income of $197 million or 70 cents per share declined from $241 million or 85 cents per share in the year-ago quarter, but topped analysts’ projections.
Looking ahead, Intuit said it expects second-quarter revenue revenue of $3.81 billion to $3.85 billion, below the analyst consensus. The company projected earnings per share (EPS) of 84 cents to 90 cents, also short of Wall Street estimates. For the full-year, the company maintained its full-year EPS forecast of $12.34 to $12.54.
Intuit shares were down more than 4% in recent trading.
The drop comes after Intuit’s stock took a hit earlier in the week on concerns the tax prep company could face more competition following reports leaders of President-elect Donald Trump’s new Department of Government Efficiency (DOGE) are considering launching a free tax-filing app.
The Washington Post reported Tesla (TSLA) CEO Elon Musk and entrepreneur Vivek Ramaswamy, who Trump tapped to lead the agency, have discussed the possibility in what the report described as “highly preliminary” conversations.
Such an app could compete with Intuit and H&R Block (HRB), which offer both free and paid tax-filing software.
–Andrew Kessel
Gap Stock Price Levels to Watch After Post-Earnings Pop
3 hr 9 min ago
Gap (GAP) shares soared in premarket trading Friday after the apparel retailer reported stronger-than-expected third-quarter results and raised its sales outlook.
The company now anticipates fiscal 2024 sales to grow between 1.5% and 2% compared to its earlier guidance of “up slightly,” as the retailer continues to make progress executing a turnaround plan under CEO Richard Dickson. The retailer said the holiday period has started strongly.
The shares look set to stage a decisive breakout above a descending triangle following the company’s strong earnings report, potentially leading to a continuation of the stock's uptrend.
Investors should track key overhead price levels on Gap's chart around $27, $36, and $52, while monitoring a crucial support area near $20.
The stock was up 19% at around $26 about 15 minutes before the opening bell.
Read the full technical analysis here.
–Timothy Smith
Futures Point to Mixed Open for Major Indexes
4 hr 12 min ago
Futures tied to the Dow Jones Industrial Average were up 0.1%.
S&P 500 futures were down 0.1%.
Nasdaq 100 futures were also off 0.1%.
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