Friday’s Headlines: Nike Dampens Investor Expectations

Friday’s Headlines: Nike Dampens Investor Expectations

Here were the biggest movers in the MyWallSt shortlist yesterday:

Moving Up ⬆️

Salesforce (CRM) +7.2%

IMAX (IMAX) +7.2%

Silicon Valley Bank (SIVB) +5.6%

Tripadvisor (TRIP) +5.6%

Eventbrite (EB) +4.0%

Moving Down ⬇️

American Tower (AMT) -1.9%

DraftKings (DKNG) -1.7%

Calavo Growers (CVGW) -1.6%

Zendesk (ZEN) -1.1%

Baozun (BZUN) -1.0%

1. Investors weren’t too impressed with Nike’s (NKE) Q3 guidance at last night’s earnings call, sending shares down overnight. Nike now expects full-year sales to increase at a mid-single-digit pace, compared with a prior outlook of low double-digit growth, due to increased supply chain issues as a result of COVID-19. This comes in the wake of mixed Q2 earnings, with earnings per share of $1.16 topping estimates, while revenue of $12.25 billion fell short of expectations. “We’ve already lost 10 weeks of production, and that gap will continue. ... It’s going to take several months to ramp back to full production,” CFO Matt Friend told investors. Read the official press release here

2. Shares in Salesforce (CRM) rose 7% on Thursday after the company raised its full-year revenue forecast. The business software maker now expects fiscal full-year 2022 sales between $26.25 billion and $26.35 billion, up from its previous forecast of $26.2 billion to $26.3 billion, and also expects fiscal year 2023 revenue of $31.65 billion to $31.80 billion. The company specifically cited the pandemic-fueled shift to hybrid work as the catalyst for its growth, as demand for its cloud-based software rose. As the company marches from strength to strength, the rise of automation and artificial intelligence is likely to keep the gravy train rolling. Read the official press release here

3. The EU is setting its sights on sustainability for consumers, and one of Apple’s (AAPL) lucrative revenue streams could be in trouble. The 27-state bloc’s lawmakers look finally set to standardize charging ports for consumer electronics devices like smartphones and tablets. Such a move would force Apple, which has publicly opposed the proposal already, to abandon its proprietary Lightning port, which could increase spending on R&D, reduce accessories sales, and force the company to tinker with production plans. Whether Apple will be forced into these changes in one of its most lucrative markets remains to be seen, but it’s one to keep an eye on. Read more here

Some more earnings from last night:

Costco (COST)
It was another strong quarter for the big-box retailer, which topped analyst expectations with earnings of $3.76 per share on revenue of $61.44 billion, up 17.7% year-over-year (YoY). Chief Financial Officer Richard Galanti cited strong demand for home furnishings and, oddly enough, luxury jewelry as a catalyst for the company’s growth in its fiscal Q4. Read more here (TCOM)
Some good news at last for the travel industry as topped analyst estimates, with revenue rising 86% YoY to $912 million, primarily due to the strong recovery of China’s domestic market. “Overall, the Chinese domestic travel market has been encouraging, and we see great potential in international markets,” said James Liang, Executive Chairman. “Going forward, we will continue to be adaptive and responsive to the changing market conditions and the evolving demands of post-pandemic travelers.” Read more here

Vail Resorts (MTN)
It was yet another earnings beat for a travel-reliant business, as Vail Resorts saw revenue rise 29.4% YoY, while maintaining significant liquidity in the form of $1.2 billion cash in hand, to weather any further COVID-19 pains. “Our results highlighted our data-driven marketing capabilities, the value of our pass products, the resiliency of demand for the experiences we offer throughout our network of world-class resorts and our disciplined cost controls,” said CEO Rob Katz last night. Read more here.