As markets concluded on 02-29-2024, the S&P 500 advanced by 0.52%. The Dow Jones Industrial Average saw an uptick, finishing 0.12% higher. Meanwhile, the Nasdaq Composite rose by 0.9%. The 10-year Treasury yield fell 0.84% to 4.244, reflecting a mixed sentiment among investors as they navigated through a plethora of earnings reports and economic indicators.
Dell Technologies (DELL, Financial) reported a significant beat on its Q4 Non-GAAP EPS of $2.20, outperforming expectations by $0.48. The company's revenue of $22.32B, although down 10.9% Y/Y, still managed to beat forecasts by $150M. Dell's optimistic outlook and a 20% increase in its annual cash dividend to $1.78 per common share sent shares soaring by 13.46%, highlighting the company's strong cash flow and confidence in future growth.
On the other hand, Zscaler (ZS, Financial) faced a downturn, with shares dropping 7.43% despite reporting a Q2 Non-GAAP EPS of $0.76, which beat estimates by $0.18, and a revenue increase of 35.4% Y/Y to $525M. The cloud-based security company's future guidance and growth prospects failed to impress investors, leading to a sell-off.
SoundHound AI (SOUN, Financial) also struggled, with its shares declining by 7.01% after missing Q4 GAAP EPS estimates by $0.01 and reporting a revenue miss. Despite a significant year-over-year revenue increase and optimistic future revenue projections, investor sentiment remained bearish on the AI company's performance and outlook.
After trading mixed through most of the day, U.S. stocks eventually ended higher on a late-session push, with the Nasdaq Composite (COMP.IND) posting a new record closing high. This advance came after market participants digested a key economic report on Leap day, which showed slow but steady progress against inflation, although the Federal Reserve's favorite price gauge underscored the sticky nature of current inflationary trends.
Fisker (FSR, Financial) reported a FY GAAP EPS of -$2.22, missing estimates by $1.10, and a revenue miss, which led to a cautious outlook from analysts regarding the electric vehicle maker's future.
B. Riley Financial (RILY, Financial) announced the hiring of Moelis & Company as an independent financial advisor to review strategic alternatives for its Appraisal and Valuation Services, and Retail, Wholesale & Industrial Solutions businesses. This move comes as B. Riley looks to potentially leverage proceeds from any transaction to strengthen its balance sheet and enhance shareholder value.
Elastic (ESTC, Financial) and Veeva Systems (VEEV, Financial) both reported earnings beats, with Elastic's Q3 Non-GAAP EPS of $0.36 outperforming estimates and Veeva's Q4 Non-GAAP EPS of $1.15, although missing expectations, still showcasing solid revenue growth. These results reflect the ongoing demand for cloud-based solutions and specialized software services.
Exxon Mobil (XOM, Financial) announced plans to cut salaries of some traders as part of a pay overhaul, aiming to align more closely with industry norms while focusing on performance-based bonuses and long-term incentives. This strategic move highlights Exxon's efforts to revamp its trading business to better compete with industry giants.
Navitas Semiconductor (NVTS, Financial), Autodesk (ADSK, Financial), HP Enterprise (HPE, Financial), Altria (MO, Financial), Eastman Kodak Co. (KODK, Financial), Fidus Investment (FDUS, Financial), Senseonics (SENS, Financial), Inari Medical (NARI, Financial), Sidus Space (SIDU, Financial), Sixth Street Specialty Lending (TSLX, Financial), Sweetgreen (SG, Financial), Tidewater (TDW, Financial), JAKKS Pacific (JAKK, Financial), Arlo Technologies (ARLO, Financial), Paramount (PARA, Financial), SQM (SQM, Financial), Intel (INTC, Financial), CubeSmart (CUBE, Financial), NetApp (NTAP, Financial), and Verizon (VZ, Financial) also made headlines with their latest financial results, strategic decisions, and market movements, reflecting a diverse range of outcomes and investor reactions across different sectors.
