Thursday’s Headlines: Salesforce’s Smashing Sales
Here were the biggest movers in the MyWallSt shortlist yesterday:
Moving Up ⬆️
DraftKings (DKNG) +6.4%
Ulta Beauty (ULTA) +4.3%
Tripadvisor (TRIP) +2.9%
Sea Limited (SE) +2.6%
Zillow (Z) +2.5%
Moving Down ⬇️
Nordstrom (JWN) -17.6%
StoneCo (STNE) -3.9%
Boston Beer Co. (SAM) -3.5%
2U (TWOU) -2.7%
GoPro (GPRO) -2.7%
1. Salesforce (CRM) shares rallied in after-hours trading yesterday after the business software leader reported earnings and guidance that topped Wall Street’s estimates. The San Francisco-based firm posted adjusted earnings of $1.48 per share on revenue of $6.34 billion, up 23% year-over-year (YoY) in the quarter. Following a strong quarter when it closed on its acquisition of Slack Technologies, the company raised its earnings and revenue guidance for the full 2022 fiscal year, now expecting adjusted earnings to come in between $4.36 to $4.38 on sales of up to $26.3 billion. Salesforce says the Slack buy has been great for business, especially as employees have relied on the remote tool to work from home. See the full press release here.
2. A recovery rebound in the beauty industry helped Ulta Beauty (ULTA) report sales growth of 60% for Q2. Fans rushing to refill their makeup bags helped the company post earnings of $4.56 on revenue of $2 billion, driven by a 52.5% YoY increase in transactions and a 26.7% YoY rise in average customer spend. Net income made a dramatic jump, rising to $250 million from the $8.1 million it earned a year earlier. CEO, Dave Kimbell, explained: “This performance reflects the recovery of the beauty category, investments and choices we’ve made over the last year to adapt to the market disruption.” See the full press release here.
3. Another day, another record-breaking day on Wall Street as the S&P 500 (VOO) and the Nasdaq Composite (QQQ) surged to fresh all-time highs yesterday. On Wednesday, the S&P 500 set a record intraday and closing high, led by gains in financials, energy, and industrials sectors. Major indexes are reaching all-time highs ahead of the Federal Reserve's virtual Jackson Hole Symposium, an important event taking place today. Central bankers will meet virtually to discuss an ‘uneven economy’ which could spark a debate on the Fed’s monetary policies. The market is really waiting to hear if the Fed will consider adjusting monetary support if the Delta variant has a negative impact on the economy. Read more here.
Some more earnings from last night:
Shares in the software company plunged late Wednesday after AutoDesk barely met analysts' estimates for Q2 and fell short of expectations for its Q3 guidance. Adjusted earnings came in at $1.21 per share while total revenue jumped 16% YoY to $1.06 billion, thanks to what Autodesk’s CFO called “Robust growth in new product subscriptions, accelerating digital sales, and improving subscription renewal rates drove our strong second-quarter results.” Check out the full press release here.
Pure Storage (PSTG)
Shares in the enterprise storage provider jumped yesterday after it reported better-than-expected results for Q2, posting revenue of $496.8 million, up 23% YoY fueled by subscription sales reaching $171.9 million, up 31% from a year ago. Charles Giancarlo, CEO of Pure Storage, boasted: “The highest Q2 operating profit in our history, it’s clear that our long-term strategy to provide customers with modern data services is working,” adding, “we are in a great innovation cycle with our portfolio and our sales momentum and execution have never been stronger.” Read the full report here.
There are four companies on the MyWallSt shortlist that will report earnings today:
Get this week’s full earnings calendar here.