Nordstrom, Box, Foot Locker, CrowdStrike Holdings, JD.com, Federal Reserve, Couchbase, SoFi Technologies, Oddity Tech
Nordstrom reported better-than-expected adjusted earnings for its fiscal fourth quarter, but its shares took a hit, falling 9.1% after the company issued guidance that fell short of estimates. The retailer’s forecast for same-store sales for the fiscal year is within a range of a 1% decline to a 2% increase, with the midpoint falling below analysts’ expectations for a 1.4% gain.
Box also released its fourth-quarter earnings, showing a significant increase from the previous year. The online document storage company announced an integration between its storage and management system and Microsoft’s Azure OpenAI service. Following the news, Box’s shares rose by 4.3%.
Meanwhile, Foot Locker saw its shares tumble 8.2% as the footwear retailer’s outlook for the current fiscal year missed analysts’ estimates. The company anticipates adjusted earnings per share of $1.50 to $1.70, lower than analysts’ consensus of $1.86.
In the tech sector, CrowdStrike Holdings posted a strong fourth quarter, with earnings of 22 cents per share, a significant increase from the previous year’s loss of 20 cents per share. The cybersecurity firm also announced an expansion of its buyback program by $100 million, causing its stock to soar by 24%.
Additionally, Chinese online retailer JD.com reported better-than-expected adjusted earnings and revenue for its fiscal fourth quarter, leading to an 11% jump in its U.S.-listed shares. The company also unveiled a new buyback program worth up to $3 billion.
Investors are eagerly awaiting the upcoming congressional testimony from Federal Reserve Chairman Jerome Powell, where insights into the central bank’s stance on interest-rate cuts for the year are expected.
In other news, software company Couchbase reported a 20% increase in fourth-quarter revenue, causing its shares to rise by 10%. The company provided a positive outlook, projecting first-quarter revenue of $48.1 million to $48.9 million, surpassing estimates of $47 million.
SoFi Technologies experienced a 15% decline in its stock on Tuesday after announcing plans to offer $750 million of convertible senior notes due in 2029. However, the financial-technology company showed signs of recovery in premarket trading, with a 3.3% increase.
Finally, Oddity Tech, utilizing artificial intelligence to assist shoppers in finding beauty and wellness products tailored to their needs, reported fourth-quarter adjusted earnings that exceeded expectations. The company also provided better-than-anticipated guidance for the current fiscal year. However, despite the positive news, Oddity Tech’s stock fell by 11%.
As investors digest these updates, stock futures are rising on Wednesday following the worst day for the three major U.S. stock indexes since February 13.
Analyst comment
1. Nordstrom – Negative news. Shares fell due to weak guidance. Market: Bearish
2. Box – Positive news. Shares rose after strong earnings and integration with Microsoft. Market: Bullish
3. Foot Locker – Negative news. Shares tumbled after missing earnings estimates. Market: Bearish
4. CrowdStrike Holdings – Positive news. Strong earnings and expanded buyback program led to stock soaring. Market: Bullish
5. JD.com – Positive news. Better-than-expected earnings and revenue, along with new buyback program, led to a jump in shares. Market: Bullish
6. Federal Reserve Chairman Jerome Powell – Neutral news. Investors cautiously watching for insight on interest rate cuts. Market: Uncertain
7. Couchbase – Positive news. Increase in revenue and positive outlook led to rise in shares. Market: Bullish
8. SoFi Technologies – Negative news. Stock declined after announcement of convertible senior notes. Market: Bearish
9. Oddity Tech – Positive news. Exceeded earnings expectations and provided better-than-anticipated guidance, but shares still fell. Market: Uncertain
