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Omar Venerio
Omar Venerio
Articles (1681) 

3 Stocks Moving on Wednesday

Macy's declines, while FedEx and Constellation Brands gain

July 01, 2020 | About:

Shares of Macy's Inc. (NYSE:M) fell almost 5% on Wednesday after reporting first-quarter revenue of $3.02 billion and a loss of $2.03 per share. It beat analysts' earnings estimates by 47 cents, but fell $700 million short of revenue expectations.

CEO Jeff Gennette had the following to say:

“The first quarter of 2020 was challenging for the country, the industry and Macy’s, Inc. While our stores are re-opened, we expect that the Covid-19 pandemic will continue to impact the country for the remainder of the year. We do not anticipate another full shutdown, but we are staying flexible and are prepared to address increases in cases on a regional level … We are meeting our customers how and where they are shopping and have enhanced our fulfillment options and health precautions to ensure a safe and welcoming shopping experience.”

The department store had cash and cash equivalents of $1.52 billion, up from $685 million at the end of the previous quarter. Total debt also increased 36% to $5.66 billion.

The company's adjusted Ebitda loss was $689 million, higher than $447 million in the year-ago quarter.

During the quarter ended March 31, Philippe Laffont curbed his holding by 83% to 22,770 shares. Jim Simons (Trades, Portfolio)'  Renaissance Technologies initiated a new stake of 3,174,564 shares, while Ray Dalio (Trades, Portfolio) sold out of the stock.

Shares of FedEx Corp. (NYSE:FDX) gained more than 12% today after reporting fourth-quarter revenue of $17.4 billion and earnings of $2.53 per share. The company beat revenue expectations by $880 million and earnings estimates by 97 cents.

CEO Frederick W. Smith commented on the company's performance:

“Though our fiscal fourth quarter performance was severely affected by the Covid-19 pandemic, I am extremely proud of the Herculean efforts of our team members… With safety as the first priority, these men and women provided essential transportation of critical supplies across the globe and delivered peak-level e-commerce volumes in the United States. As a result of the strategic investments we have made to enhance our capabilities and efficiencies, FedEx is well positioned to support and benefit from the reopening of the global economy.”

The company paid $125 million in operating costs for personal protection equipment, cleaning and other costs related to the pandemic.

Laffont initiated a new position of 1,784 shares during the most recent quarter, while Steven Cohen (Trades, Portfolio) bought 262,146 shares and the Parnassus Endeavor Fund (Trades, Portfolio) purchased a 1,200,000-share stake. Jerome Dodson (Trades, Portfolio) boosted his holding by 74% to 274,457 shares, while Robert Olstein (Trades, Portfolio) trimmed his holding by 2% to 61,000 shares.

Shares of Constellation Brands Inc. (NYSE:STZ) gained more than 6% in Wednesday trading after the company reported first-quarter earnings of $2.30 per share on revenue of $1.96 billion. The company fell $10 million short of revenue expectations, but beat earnings projections by 26 cents.

By segment, sales for the beer business were down 6.3% to $1.38 billion due to a 7.2% decline in shipment volume, offset by 5.6% depletion growth, while organic shipment volume fell 6.3%.

Sales in the wine and spirits segment fell 7% to $579.3 million, with organic net sales falling 4%.

The adjusted gross profit decreased 5% year over year to $1.03 billion, and the adjusted gross profit margin inched up 60 basis points to 52.6%.

The company had cash and cash equivalents of $302.8 million and generated operating cash flow of $686.5 million and adjusted free cash flow of $542.3 million.

Spiros Segalas (Trades, Portfolio) increased his stake 43% to 1,344,090 shares, while Cohen cut his position to 274,924 shares and Diamond Hill Capital (Trades, Portfolio) reduced its holding to 246,534 shares.

Disclosure: The author holds no position in any stocks mentioned.

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About the author:

Omar Venerio
Omar Venerio is a capital markets, derivatives, corporate finance and financial management professor and Area Head of Finance. He is passionate about the stock market and providing independent fundamental research and hedge fund and insider trading-focused investigation.

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