Kroger halts stock buybacks as it seeks approval for Albertsons deal
1 hour 11 minutes ago
Kroger (KR) reported first-quarter revenue above analyst estimates and said it would suspend share buybacks to seek regulatory approval for its $24.6 billion acquisition from its rival Albertsons (ACI).
Kroger reported revenue of $45.27 billion, up 0.2% from last year and above analyst forecasts. Same-store sales, excluding gasoline, increased 0.5%. Kroger added that digital sales grew more than 8% and its delivery and pickup options grew by double digits.
Diluted earnings per share (EPS) came in at $1.29, down from $1.32 a year ago and below analyst estimates. However, the adjusted EPS of $1.43 exceeded forecasts.
The supermarket chain said it was suspending share buybacks “in order to prioritize deleveraging” ahead of the deal, which is being contested by regulators over concerns the merger would potentially limit competition.
Kroger shares were down more than 2% as of early Thursday afternoon, although they have gained more than 10% year to date.
–Bill McColl
Darden Restaurants Reports Adjusted EPS as Ruth’s Chris Sales Rise
1 h 56 min ago
Shares of Darden Restaurants (DRI) rose Thursday after the company posted better-than-expected adjusted earnings thanks to the acquisition of Ruth’s Chris Steak House.
The operator of Ruth’s Chris, Olive Garden and other restaurants reported fourth-quarter fiscal 2024 adjusted earnings per share (EPS) of $2.65, above the consensus estimate of $2.61 analysts surveyed by Visible Alpha. Revenue rose 6.8% year over year to $2.96 billion, just below forecasts.
Darden said the gains were driven by the addition of 80 Ruth’s Chris locations and 37 other net new restaurants. Darden purchased Ruth’s Chris last year for about $715 million.
Same-store sales, which did not include Ruth’s Chris, were unchanged from the previous year. They fell 1.5% at the company’s largest operation, Olive Garden, and 2.6% at its fine-dining restaurants. Same-store sales increased 4.0% at LongHorn Steakhouse.
Shares of Darden Restaurants were up more than 2% as of midday Thursday, but are down more than 5% year to date.
–Bill McColl
Accenture shares jump as AI-related bookings soar
2 hours 22 minutes ago
Shares of Accenture (ACN) rose Thursday after the consulting giant reported third-quarter results that saw profits beat estimates and an increase in artificial intelligence (AI)-related bookings.
Accenture reported revenue of $16.47 billion for the quarter, down from $16.56 billion in the third quarter of 2023 and $16.55 billion expected by analysts, according to estimates compiled by Visible Alpha.
Net income attributable to the company, however, beat estimates, with Accenture posting a profit of $1.93 billion, or $3.04 per share, better than the $1.91 billion and $3.01 per share expected. by analysts.
The company said its AI efforts were paying off, surpassing $900 million in new generative AI bookings for the quarter, bringing Accenture’s total AI bookings to 2 billion dollars since the beginning of the fiscal year.
However, Accenture lowered its full-year diluted earnings per share (EPS) forecast to a range of $11.29 to $11.44, down from its previous range of $11.41 at $11.64. The company previously said it had faced an “uncertain macroeconomic environment” and had seen customers reduce some discretionary spending.
Accenture shares are up 7% but remain down more than 14% so far this year.
-Aaron McDade
Nvidia’s gains make it bigger than European stock markets
3 hours 21 minutes ago
Shares of Nvidia (NVDA) continued to climb Thursday, extending the AI chip maker’s lead over Microsoft (MSFT), which it overtook Tuesday as the world’s most valuable company.
Nvidia’s rise to the ranks of the world’s largest companies has been meteoric, to say the least. Its market value has already doubled this year, after tripling last year. It has added $1 trillion in market capitalization, more than Warren Buffett’s famous Berkshire Hathaway, in the 23 trading days since May 20, according to a Deutsche Bank post distributed Thursday morning.
And with a market capitalization of more than $3.4 trillion, Nvidia last week became larger than the respective stock markets of Germany, France and the United Kingdom. The only countries whose domestic stock markets were worth more than Nvidia on Thursday were India, Japan, China and, of course, the United States.
Given how quickly the stock has climbed, it’s reasonable to expect some short-term profit-taking, Bank of America Securities analysts said in a note Thursday. The volatility could be short-lived, they write, however, due to the company’s strong fundamentals and relatively attractive valuation.
We’re still in the early stages of AI hardware deployment, and Nvidia is expected to benefit from strong demand when it rolls out its next-generation Blackwell system later this year. Additionally, Nvidia currently trades at around 30 times its price-to-earnings in Bank of America’s bull case, which is not much higher than the P/E ratio of the entire S&P 500 of 23.6 and consistent with the Nasdaq 100 ratio of 31.7.
–Colin Laidley
Dell Stock in Focus on News Company to Provide Server Racks for xAI Supercomputer
3 hours 47 minutes ago
Shares of Dell (DELL), which has gained 10% in the past two trading sessions, rose Thursday after Elon Musk said his artificial intelligence (AI) startup, xAI, would use the server racks of the hardware giant to build its supercomputer.
“To be precise, Dell assembles half of the racks for the supercomputer built by xAI.” » Musk said in a post on the social media platform on Wednesday. When asked who xAI’s second partner was, the Open AI co-founder replied “SMC,” referring to AI server maker Super Micro Computer (SMCI).1
Musk’s recent comments about Dell have reinforced the bullish sentiment towards the stock.
Dell shares have remained in a longer-term uptrend since the 50-day moving average (MA) crossed above the 200-day MA to generate a golden cross chart pattern. Most recently, the price declined after the server maker missed Wall Street’s quarterly estimates, but quickly saw buying interest near a horizontal line and the 50-day MA.
Looking ahead, if the stock continues its bullish momentum, investors should watch how the price reacts to its all-time high (ATH) set last month at $179.70. A convincing break above this technically significant level, supported by trading volume, could see shares continue their advance.
Dell shares are up nearly 6% and have more than doubled this year.
–Tim Smith
Stock futures are mostly up
5 hours 3 minutes ago
Dow futures were flat in premarket trading Thursday.
S&P futures rose 0.3%.
Nasdaq futures rose 0.5%.