What You Need To Know For November 28th

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Welcome back! I hope everyone gets to cozy up and relax today. We’ve got you covered on the latest news so you can chill out today.

Here’s a look at earnings this week.

Earnings Corner 📜 

Trending Up 📈 

Burlington Stores (BURL) reported earnings that beat estimates, as comparable sales increased 1%, and gross margins expanded 70 bps, driving the stock up 2.6% at Wednesday’s close

Trending Down 📉 

Dell (DELL) shares were a big hit to the broader market on Wednesday after posting Q4 revenue guidance of $24B-$25B — less than the street’s projection of $25.57B. Dell’s shares are up 86% YTD, as the PC maker has profited from the AI boom by selling computer clusters needed to deploy Nvidia’s GPUs. However, on the call, mgmt. warned that AI growth will not be linear. The stock was down 12.3% at Wednesday’s close

Macy’s (M) was slated to report earnings on Tuesday, but postponed the announcement due to an accounting error. Macy’s stated that a rogue accounting member (who has since been fired) has quietly been robbing the company blind since 2021. The employee concealed $132mm-$154mm of delivery expenses over the past few years. This is a poor look for their auditor, KPMG. The company released preliminary results Monday, which showed revenue falling by 2.4% y/y. The stock was down 2.4% at Wednesday’s close

Best Buy (BBY) reported earnings that missed estimates, as comparable sales slumped 2.9% y/y. While new iPhone and electronics sales helped stabilize the top line, mgmt. noted that consumers remain cautious due to economic uncertainty. Appliance and gaming sales continued to be weak. Mgmt. projected FY comparable sales would decline by 2.5%-3% (vs. 1.5%-3% previously). The stock was down 5.6% at Wednesday’s close

CrowdStrike (CRWD) reported earnings that beat estimates, with revenue of $1.01B up 29% y/y (vs. 983MM expected) and EPS of $0.93 (vs. $0.81 expected). Despite the cybersecurity provider’s July outage, mgmt. noted strong performance in attracting new enterprise customer commitments. However, analysts were unimpressed by FY 2024 revenue projections of $3.92B-$3.93B (vs. $3.89B-$3.9B previously). The stock was down 4.6% at Wednesday’s close

Dick’s Sporting Goods (DKS) reported earnings that beat estimates. Strong back-to-school performance drove comparable sales growth of 4.2%, and, unlike many competitors in the Southeast, this year’s unusually warm fall weather did not materially impact performance. Mgmt. expects robust holiday performance, raising its FY 2024 comparable sales growth outlook to 3.6%-4.2% (vs. 2.5%-3.5% previously). The stock was down 2.4% at Wednesday’s close

Zoom (ZM) reported earnings that beat estimates, with revenue of $1.18B up 4% y/y (vs. $1.16B expected) and EPS of $1.38 (vs. $1.31 expected). Mgmt. upped its FY 2025 guidance, projecting EPS of $5.41-$5.43 (vs. $5.29-$5.32 previously) and revenue of $4.656B-$4.661B (vs. $4.63B-$4.64B previously). The stock was down 4.1% at Wednesday’s close

Nordstrom (JWN) reported earnings that beat estimates on the back of strong apparel and shoe sales. The announcement is a surprise as the discretionary and luxury merchandise sectors have lately been under pressure. Yet, the stock still fell 7.5% at Wednesday’s close as net income was down y/y