STOCK MARKET NEWS: Stocks fall for month, Goldman eyes 'strategic alternatives,' Tesla looks south

Two cans of Monster energy drink are shown in this photo illustration in Los Angeles Oct. 23, 2012. (Reuters/Sam Mircovich)

Monster Beverage Corp. on Tuesday reported fourth-quarter profit of $301.7 million.

The Corona, California-based company said it had net income of 57 cents per share.

The results did not meet Wall Street expectations. The average estimate of 10 analysts surveyed by Zacks Investment Research was for earnings of 61 cents per share.

The energy drink maker posted revenue of $1.51 billion in the period, also missing Street forecasts. Eight analysts surveyed by Zacks expected $1.59 billion.

Ross Stores Inc. on Tuesday reported fiscal fourth-quarter profit of $447 million.

The Dublin, California-based company said it had profit of $1.31 per share.

The results surpassed Wall Street expectations. The average estimate of nine analysts surveyed by Zacks Investment Research was for earnings of $1.23 per share.

The discount retailer posted revenue of $5.21 billion in the period, which also topped Street forecasts. Seven analysts surveyed by Zacks expected $5.13 billion.Ross Stores expects full-year earnings to be $4.65 to $4.95 per share.

Hewlett-Packard (HP) logo is seen as part of a display at the Microsoft Ignite technology conference in Chicago, Ill., May 4, 2015. (Reuters/Jim Young)

HP Inc on Tuesday reported the steepest fall in quarterly revenue since 2016 and missed analysts' estimates, hit by delayed computer and printer upgrades by customers in the face of high inflation and economic uncertainty.

Rising costs, tepid consumer spending and recessionary fears have pummeled several sectors across major markets including the United States, with computers and peripherals taking one of the worst hits in retail categories.

There is now a slowdown in orders from businesses, Chief Executive Enrique Lores told Reuters in an interview.

HP said revenue fell nearly 19% to $13.8 billion in the first quarter ended Jan. 31, missing analysts' average estimate of $14.12 billion, according to Refinitiv data.

However, the company forecast second-quarter adjusted per share earnings in the range 73 cents to 83 cents, which came in higher than analysts' average estimate of 76 cents.

MARKETS

Goldman Sachs gives strategy update at investor day

Goldman Sachs chairman and CEO David Solomon said the company made mistakes in its consumer business and would initiate other strategies to repair the issue.

Goldman Sachs Group Inc's Chief Executive David Solomon said the bank is considering "strategic alternatives" for its consumer business after stumbles led to billions of dollars in losses.

Solomon did not specify what those options would be.

Goldman has already halted unsecured lending, a portfolio that could be sold. Its Marcus consumer business was folded into the company's merged asset and wealth management arm last year, and its newly-formed Platform Solutions unit houses transaction banking, credit cards and a fintech platform, GreenSky.

Tesla electric vehicle chargers are seen during the winter in Hofn, Iceland, Feb. 16, 2022. (Reuters/Nacho Doce)

Tesla Inc will build a new assembly plant in northern Mexico, the country's president said on Tuesday, marking a push by the electric vehicle maker to broaden operations outside the U.S. in a deal said by a source to be worth at least $1 billion.

TECHNOLOGY

Tesla to build a manufacturing plant in Mexico

Monterrey, Mexico, will host Tesla's newest electric vehicle EV plant. Tesla's newest gigafactory will come on top of recent expansions in China and Germany, and plans to increase Austin's capacity.

President Andres Manuel Lopez Obrador said "the whole Tesla company" was coming to Mexico to build a "very big" automotive plant, noting that potential investment in batteries was still pending. He did not reveal what models it would produce.

One Mexican official said the plant would be a Tesla "Gigafactory" that could produce the Semi truck, Roadster sports car, and potentially other vehicles. Another official said the plant could produce a kind of sport utility vehicle (SUV). The Model Y is Tesla's best-selling SUV. Tesla will likely give details of its plans on Wednesday, Mexico's government said.

Representations of cryptocurrencies are seen in front of displayed FTX logo in this illustration taken Nov. 10, 2022. (Reuters/Dado Ruvic/Illustration)

The Securities and Exchange Commission today charged Nishad Singh, the former Co-Lead Engineer of FTX Trading Ltd. (FTX), for his role in a multiyear scheme to defraud equity investors in FTX, the crypto trading platform started by Singh along with Samuel Bankman-Fried and Gary Wang.

Investigations into other securities law violations and into other entities and persons relating to the alleged misconduct are ongoing.

According to the SEC’s complaint, Singh created software code that allowed FTX customer funds to be diverted to Alameda Research, a crypto hedge fund owned by Bankman-Fried and Wang, despite false assurances by Bankman-Fried to investors that FTX was a safe crypto asset trading platform with sophisticated risk mitigation measures to protect customer assets and that Alameda was just another customer with no special privileges.

In a parallel action, the U.S. Attorney’s Office for the Southern District of New York and the Commodity Futures Trading Commission (CFTC) today announced charges against Singh. 

Singh is cooperating with the SEC’s ongoing investigation.

Shoppers look at products at an Apple store in Pittsburgh, Pa.,Jan. 30, 2023. On Tuesday, the Conference Board reports on U.S. consumer confidence for February. (AP Photo/Gene J. Puskar)

Consumers confidence dipped for the second straight month as stubborn inflation and anxiety over a potentially slowing economy weighed on Americans.

The Conference Board reported Tuesday that its consumer confidence index slipped to 102.9 in February, from a reading of 106 in January.

ECONOMY

Consumer confidence slips again

Consumer confidence declined in January for the second month in a row according to the latest data, surprising economists who had expected sentiment to rise.

The business research group’s present situation index — which measures consumers’ assessment of current business and labor market conditions — ticked up to 152.8 from 151.1 last month.

The board’s expectations index — a measure of consumers’ six-month outlook for income, business and labor conditions — tumbled to 69.7 in February from 76 in January.

A reading under 80 often signals a recession in the coming year, the Conference Board said.

Representation of virtual currency Bitcoin is seen in front of a stock graph in this illustration taken Jan. 8, 2021. (Reuters/Dado Ruvic)

Robinhood Markets Inc said in a filing on Monday it had received an investigative subpoena in December from the U.S. Securities and Exchange Commission related to listings of cryptocurrencies.

The SEC has maintained that pre-existing securities laws also apply to digital assets and that many crypto tokens meet the definition of a security, which the crypto industry has previously criticized.

Robinhood said the subpoena it received from the SEC was regarding the supported currencies at Robinhood Crypto LLC, which is a wholly-owned subsidiary of the brokerage, as well as its custody of cryptocurrencies and other platform operations.

Earlier this month, Robinhood also said it planned to repurchase its shares from Sam Bankman-Fried's Emergent Fidelity Technologies as U.S. prosecutors were in the process of seizing its shares tied to the former FTX CEO.

The White House on Monday gave government agencies 30 days to ensure they do not have Chinese-owned app TikTok on federal devices and systems.

In a bid to keep U.S. data safe, all federal agencies must eliminate TikTok  from phones and systems and prohibit internet traffic from reaching the company, Office of Management and Budget Director Shalanda Young told agencies in a guidance memorandum seen by Reuters.

POLITICS

China mocks TikTok ban on US government devices, asks why 'top superpower' fears 'young people app'

An official with the Chinese Ministry of Foreign Affairs mocked on Tuesday the White House's decision to ban the TikTok social media app from government devices.

The ban, ordered by Congress late last year, follows similar actions from Canada, the EU, Taiwan and more than half of U.S. states.

The device ban — while impacting a tiny portion of TikTok's U.S. user base — adds fuel to calls for an outright ban on the video-sharing app. National security concerns about China surged in recent weeks after a Chinese balloon drifted over the U.S.

Shift4 Payments, Inc. on Tuesday reported fourth-quarter net income of $29.2 million, after reporting a loss in the same period a year earlier.

The Allentown, Pennsylvania-based company said it had profit of 46 cents per share. Earnings, adjusted for one-time gains and costs, were 47 cents per share.

The results topped Wall Street expectations. The average estimate of five analysts surveyed by Zacks Investment Research was for earnings of 45 cents per share.

The company posted revenue of $537.7 million in the period. Its adjusted revenue was $199.4 million, missing Street forecasts. Four analysts surveyed by Zacks expected $201.9 million.

For the year, the company reported net income of $75.1 million, or $1.05 per share, swinging to a profit in the period. Revenue was reported as $727.5 million.

Ocado delivery van is seen driving in Hatfield, Britain, Feb. 26, 2021. (Reuters/Matthew Childs)

Ocado Group, the British online supermarket and technology group, reported a worse-than-expected full-year loss, partly reflecting profits being wiped out at its retail joint venture with Marks & Spencer.

“The retail joint venture with Marks & Spencer looks stuck in the mud. Consumers are pulling back from doing big shops which is problematic for Ocado. It’s more cost and time efficient to fill a van with a big customer order than lots of little ones, so the shift in shopping behaviour creates a headwind,” said Russ Mould, investment director at AJ Bell.

The group said on Tuesday it made a loss before tax of 501 million pounds ($604 million) over the year to Nov. 27 2022. That compared to analysts' average forecast of a loss of 399 million pounds and a loss of 176.9 million pounds in the previous year.

“The latest results are as appetising as a bucket of sick. Revenue growth has ground to a halt, pre-tax losses are getting worse and net debt has ballooned,” Mould added. “Ocado has long argued that it needs to spend money to make money, but patience is wearing thin for the long-suffering shareholders.”

Reuters contributed to this report.

ADT Inc. on Tuesday reported fourth-quarter net income of $151 million, after reporting a loss in the same period a year earlier.

On a per-share basis, the Boca Raton, Florida-based company said it had profit of 16 cents. Earnings, adjusted for one-time gains and costs, were 10 cents per share.

The home security company posted revenue of $1.65 billion in the period.

For the year, the company reported net income of $173 million, or 19 cents per share, swinging to a profit in the period. Revenue was reported as $6.4 billion.

ADT expects full-year earnings in the range of 30 cents to 40 cents per share, with revenue in the range of $6.6 billion to $6.85 billion.

ADT shares have declined 13% since the beginning of the year, while the S&P's 500 index has increased nearly 4%. The stock has risen slightly more than 7% in the last 12 months.

Chico's FAS Inc. on Tuesday reported fiscal fourth-quarter earnings of $7.5 million.

The Ft Myers, Florida-based company said it had profit of 6 cents per share.

The clothing chain posted revenue of $524.1 million in the period.

For the year, the company reported profit of $109 million, or 88 cents per share. Revenue was reported as $2.14 billion.

For the current quarter ending in April, Chico's said it expects revenue in the range of $535 million to $550 million.

The company expects full-year earnings to be 79 cents to 91 cents per share, with revenue ranging from $2.22 billion to $2.25 billion.

AutoZone store, Lawnside, N.J., Dec. 22, 2022

AutoZone Inc. on Tuesday reported fiscal second-quarter earnings of $476.5 million.

On a per-share basis, the Memphis, Tennessee-based company said it had profit of $24.64.The results exceeded Wall Street expectations.

The auto parts retailer posted revenue of $3.69 billion in the period, also topping Street forecasts.

Advance Auto Parts Inc. reported fourth-quarter profit of $106.7 million.

The Raleigh, North Carolina-based company said it had profit of $1.79 per share. Earnings, adjusted for one-time gains and costs, were $2.88 per share. The results surpassed Wall Street expectations.

The auto parts retailer posted revenue of $2.47 billion in the period, also beating Street forecasts.

Additionally, the company said CEO Tom Greco plans to retire at the end of the year. He will serve in an advisory capacity through a transition period.

In connection with Greco’s planned retirement and the company’s succession planning process, the Advance Auto Parts Board has formed a Succession Committee, composed of independent directors. The Board intends to retain a leading executive search firm to assist in a thorough and comprehensive search that considers both internal and external candidates.

The Associated Press contributed to this report.

SeaWorld unveils its new Orca Encounter show in San Diego, Calif., May 31, 2017. (Reuters/Mike Blake)

SeaWorld Entertainment Inc. on Tuesday reported fourth-quarter earnings of $49 million.

On a per-share basis, the Orlando, Florida-based company said it had net income of 76 cents.

The results surpassed Wall Street expectations. The average estimate of five analysts surveyed by Zacks Investment Research was for earnings of 68 cents per share.

The theme park operator posted revenue of $390.5 million in the period, also beating Street forecasts. Five analysts surveyed by Zacks expected $384.4 million.

For the year, the company reported profit of $291.2 million, or $4.14 per share. Revenue was reported as $1.73 billion.

Cracker Barrel Old Country Store Inc. (CBRL) on Tuesday reported fiscal second-quarter net income of $30.5 million.

On a per-share basis, the Lebanon, Tennessee-based company said it had net income of $1.37. Earnings, adjusted for non-recurring costs, came to $1.48 per share.

The results exceeded Wall Street expectations. The average estimate of five analysts surveyed by Zacks Investment Research was for earnings of $1.33 per share.

The restaurant operator posted revenue of $933.9 million in the period, also surpassing Street forecasts. Four analysts surveyed by Zacks expected $917.3 million.

Cracker Barrel shares have increased 14% since the beginning of the year.

Norwegian Cruise Line Holdings cruise ship Marina arrives at the Havana bay, Cuba, Mar. 9, 2017. (Reuters/Alexandre Meneghini)

Norwegian Cruise Line Holdings Ltd forecast for its first annual profit in three years fell short of estimates on Tuesday, as the cruise operator battles soaring fuel and labor costs.

The cruise operator forecast an adjusted profit of 70 cents per share for 2023, compared with estimates of $1.06, according to IBES data from Refinitiv.

The company expects a loss of 45 cents per share for the first quarter, compared with estimates for a loss of 33 cents.

However, affluent passengers unaffected by high inflation have boosted booking volumes and occupancy rates, helping the company beat fourth-quarter revenue estimates.

On-board and other revenue at $507.6 million accounted for about 33% of total revenue as restrictions imposed during the pandemic were lifted and easing of on-board COVID-19 protocols fueled strong spending on casinos and spas.

Norwegian said demand during the all-important period "wave season" has been very strong and booking volumes have accelerated in recent months, echoing rival Royal Caribbean Group's comments from early in February.

The  "wave season" is the period during January - March where cruise operators offer special deals and discounts for the year to attract customers.

Norwegian, which owns the Oceania Cruises and Regent Seven Seas Cruises brands, expects occupancy to average about 100% for the first quarter and is on track to reach historical levels for the second quarter.

MARKETS

Target CEO gives cautious outlook after sales, profits improve

Target reported an increase in sales and revenue for the fourth quarter but CEO Brian Cornell is not as optimistic about the current environment.

Target delivered a decent fourth quarter but CEO Brian Cornell is not overly optimistic about the current operating environment.