Serdarbayraktar
Stock futures edged higher on Thursday after Federal Reserve Chair Jerome Powell said the central bank was on track to cut rates later this year.
Here are some of Thursday's biggest stock movers:
Biggest stock gainers
- The Honest Company (NASDAQ:HNST) shares jumped 25% after reporting a profit in Q4, driven by a 10% increase in sales, both of which exceeded estimates. For 2024, the company expects revenue growth in the low-to-mid single-digit percentage range, with the first half of 2024 anticipated to be softer than the second half. Positive adjusted EBITDA is forecasted to be in the low-single-digit to mid-single-digit million range. CFO Dave Loretta added, "Our 2024 outlook emphasizes profitable growth and showcases the confidence we have in the long-term strategy and financial future of Honest."
- Novo Nordisk's (NVO) shares surged 7.5% following positive results from an early-stage trial of its oral weight-loss drug, amycretin. Amycretin, a long-acting co-agonist of GLP-1 and amylin, helped patients lose 13% of their weight in 12 weeks in a Phase 1 trial, the company said at its investor day meeting. This is compared to a 6% weight loss with Wegovy (semaglutide), Novo Nordisk's popular GLP-1 obesity drug.
- Following a dramatic more than 40% plunge on Wednesday, shares of New York Community Bancorp (NYSE:NYCB) surged over 12% on Thursday after the struggling bank secured over $1B in capital, with major contributions from Liberty Strategic Capital ($450M) and other institutional investors. To raise capital, NYCB will issue shares at $2.00 and offer warrants for future purchases, aiming to stabilize the bank and set the stage for future growth. Former Treasury Secretary Steven Mnuchin will join NYCB's board alongside Joseph Otting, who will assume the role of CEO. NYCB also took a significant step to conserve resources by slashing its quarterly dividend by 80% to $0.01 per share.
- American Eagle Outfitters (NYSE:AEO) stock rose 8% after topping consensus in the holiday quarter and unveiling a new strategy plan. The company expects operating income to be between $445M and $465M, with revenue growth of 2% to 4%. The CEO expressed optimism for 2024, citing momentum and a strong position with new customer engagement initiatives. The company's new Powering Profitable Growth plan aims for mid-to-high teens annual operating income expansion and 3% to 5% annual revenue growth over the next three years. Key strategies include growing American Eagle, leading in denim, expanding into new markets, fueling Aerie’s expansion, and accelerating activewear opportunities.
Biggest stock losers
- Victoria's Secret (NYSE:VSCO) shares plummeted 31% following the company's warning of potential losses in the next quarter due to ongoing challenges in its intimates category. Despite planning its business conservatively and maintaining an open-to-buy strategy, the company cited a Y/Y decline in the broader North American intimates market for four consecutive quarters, attributing this trend to a challenging macro environment. Victoria's Secret projects 2024 sales to decrease by low single digits from 2023 to $6B, missing expectations of $6.18B, and anticipates Q1 adjusted earnings to range from a loss of $0.15 to a profit of $0.10 per share, compared to $0.28 in 1Q23, with analysts expecting $0.31 per share. Total Q1 sales are forecast to decrease by mid-single digits, and the adjusted gross margin is expected to range between 36.5% and 37.5%, flat to up 100 basis points from 1Q23.
- ADT (NYSE:ADT) experienced a 12% plunge in its share price following the announcement of a secondary public offering (SPO) by Apollo Global Management (APO). This offering seeks to divest 55M ADT shares at a price range of $6.50 to $6.75 per share, potentially generating up to $371M for Apollo. APO shares were down 3% following this news.
- Just ahead of its Q4 earnings print, Big Lots' (NYSE:BIG) share plunged 40% amid analysts' expectations of a quarterly loss. The consensus EPS estimate sits at -$0.26, though it represents a 7.1% Y/Y improvement. Revenue estimates are also down 7.1% Y/Y at $1.43B. While analysts haven't revised their estimates upwards in the last 3 months, BIG has historically beaten EPS estimates 50% of the time and revenue estimates 38% of the time in the past two years.