Tuesday's Headlines: Nike Outperforms

Tuesday's Headlines: Nike Outperforms

Here were the biggest movers in the MyWallSt shortlist yesterday:

Moving Up ⬆️

Take-Two Interactive (TTWO) +1.5%

Eventbrite (EB) +1.4%

Netflix (NFLX) +1.2%

Boston Beer Co. (SAM) +1.1%

PagerDuty (PD) +1.0%

Moving Down ⬇️

Peloton Interactive (PTON) -8.8%

Nautilus (NLS) -7.6%

International Dividend Appreciation ETF (VIGI) -6.6%

Lovesac (LOVE) -6.6%

Upstart Holdings (UPST) -5.5%

1. Nike (NKE) beat both earnings and revenue estimates in its Q2 2022 results last night, seeing shares move upwards after-hours. The apparel giant reported $11.4 billion in revenue v.s. $11.25 billion estimated and earnings per share (EPS) came in at $0.83 which was also ahead of expectations. The results are a testament to the strength of the brand in North America, bolstered by a 40% growth in sales year-over-year (YoY), and a 12% increase in digital sales in the region. Even amid supply chain issues — particularly in Asia — the company outperformed, and it expects to see a positive rebound in the new year with consumers returning to sports. Read the full press release here.

2. Disney (DIS) stands to benefit from the success of ‘Spider-Man: No Way Home’, the biggest box office release this year and the third-best opening weekend ever. While it doesn't technically own the production rights and receives no royalties — they belong to Sony — Disney does own the merchandising rights from agreements the two companies have struck in the past. Historically, the performance of the Spider-Man franchise in cinemas has directly correlated to merchandising sales, and past retail sales for its action figures have brought in over $1.3 billion alone. As the largest licensor in the world, we can expect Disney to post solid numbers for this segment going forward considering the movie spans several unique characters from the Spider-Man universe. Read the full story here.

3. Calavo Growers (CVGW) reported earnings which saw 17% revenue growth YoY to $273 million, although gross profits slipped to $9.1 million from $21.2 million in the same period last year. Inflationary impacts continue to affect the business in relation to labor, logistics, and raw materials costs, but the company is adjusting accordingly, with a 37% increase in the average selling price of its avocado products this quarter. This can be attributed to Calavo’s long-term strategic initiative, ‘Project Uno’, which is optimizing procurement and back-office activities to improve overall profitability. Calavo also made progress this quarter in its search for a replacement CEO, which it is in the final stages of doing. Read the full press release here.

One more company on the MyWallSt shortlist will report earnings today: 

FactSet (FDS)

David GranahanDavid Granahan

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