Broadcom’s Optimistic AI Outlook Drives Market Strikes: Lululemon Soars, Costco Slips

On Thursday, Lululemon (LULU) additionally introduced that its CEO, Calvin McDonald, plans to step down from his position and from the corporate’s board on Jan. 31. McDonald will proceed to function a senior adviser to the corporate by way of March 31 in the course of the transition interval.

Lululemon did not title a everlasting successor however stated that the corporate’s chief monetary officer, Meghan Frank, and its chief industrial officer, André Maestrini, will function interim co-CEOs.

McDonald took on the CEO position in 2018. Throughout his tenure, he expanded the corporate’s product portfolio and grew its mainland China enterprise. Beforehand, McDonald labored as head of America’s at LVMH’s Sephora.

Lululemon inventory is up 42.8% throughout McDonald’s time period as CEO. The inventory rose round 10% in after-hours buying and selling on Thursday following the corporate’s earnings beat.

Lululemon (LULU) inventory popped by 10% in prolonged buying and selling after the Canada-based attire retailer posted an earnings beat and upbeat full-year revenue forecast.

“As we enter the vacation season, we’re inspired by our early efficiency,” Lululemon CEO Calvin McDonald stated, noting that the corporate continues to make progress in its turnaround plan and expects to see extra leads to 2026.

Within the firm’s third quarter, diluted income rose to $2.59 per share, exceeding expectations for adjusted earnings of $2.22 per share, in accordance with S&P World Market Intelligence.

Income elevated 7% yr over yr to $2.6 billion, topping estimates of $2.47 billion. Increased income was pushed by worldwide gross sales, which climbed 18% on a comparable foundation. Identical-store gross sales within the Americas declined 5%.

For the fourth quarter, Lululemon guided for internet income within the vary of $3.5 billion to $3.58 billion, according to the Wall Avenue consensus estimate of $3.56 billion.

For the total yr, the corporate forecast internet income to be between $10.96 billion and $11 billion, representing 4% development. The Avenue is anticipating full-year income of $10.96 billion.

Lululemon’s anticipated full-year earnings additionally got here in forward of expectations, with diluted earnings per share anticipated in a spread of $12.92 to $13.02 for the yr. The Avenue guided for adjusted earnings of $12.86 per share.

Following Oracle’s (ORCL) fiscal second quarter report, which renewed worries about synthetic intelligence funding, fabless chip and software program maker Broadcom (AVGO) could have an opportunity to assist set market expectations on one of many solely issues it cares about: AI.

Right here’s what you’ll want to know, through StockStory’s Adam Hejl:

Learn extra right here.

Synopsys (SNPS) inventory jumped almost 6% in prolonged buying and selling after the maker of chip design and testing software program reported an earnings and income beat.

Within the fiscal fourth quarter, Synopsys posted internet earnings of $2.90 per diluted share, topping estimates for $2.88 per share, in accordance with S&P World Market Intelligence. The corporate additionally recorded income of $2.25 billion, in comparison with estimates of $2.23 billion and $1.636 billion for the fourth quarter of fiscal yr 2024.

For its fiscal 2026, Synopsys is concentrating on income of $9.56 billion to $9.66 billion, according to consensus estimates. It additionally guided for non-GAAP earnings per share of $14.32 to $14.40 for 2026, forward of estimates of $14.05.

Hearken to a livestream of the earnings name right here at 5 p.m. ET.

Reuters stories:

Learn extra right here.

Yahoo Finance’s Laura Bratton stories:

Learn extra right here.

Yahoo Finance’s Laura Bratton stories:

Learn extra right here.

Chewy (CHWY) earnings beat analyst estimates as the net pet retailer continued to take market share, however the inventory tumbled almost 7% in premarket buying and selling as buyers see continued stress on the sector.

Adjusted earnings per share had been $0.32 within the third quarter, in comparison with analyst estimates for $0.30, in accordance with S&P World Market Intelligence. Web gross sales rose 8.3% yr over yr to $3.12 billion, in comparison with estimates of $3.01 billion.

“Chewy continues to outperform the pet class and broaden market share, with income as soon as once more rising sooner than gross sales,” CEO Sumit Singh stated within the launch.

Gross margins had been one other metric in focus for buyers this quarter. Gross margins of 29.8% beat expectations however nonetheless dipped from 30.4% in Q2.

“As of late, the view has been that CHWY’s gross margin has restricted upside going ahead,” UBS’s analysis group led by Michael Lasser wrote in a word forward of earnings. “Whereas the scaling of its sponsored advert initiative has been a significant gross margin driver of the previous a number of quarters, we predict this pattern must proceed for the corporate to see the identical magnitude of GM positive aspects. However till then, bears could level to an more and more aggressive market, stress from tariffs, and better promotional exercise within the again half of the yr to assist a capped margin upside.”

Hearken to the earnings name stay right here.

Dave & Buster’s (PLAY) missed earnings and income estimates on Tuesday, however the inventory moved greater in uneven after-hours buying and selling.

The leisure and eating firm reported a internet lack of $1.14 per share, in comparison with estimates of a lack of $1.04, in accordance with S&P World Market Intelligence. Income decreased 1.1% yr over yr to $448.2 million, in comparison with estimates of $460.1 million.

Dave & Buster’s CEO Tarun Lal stated the corporate has made “substantive progress” on its “back-to-basics” turnaround plan.

“We’ve been exhausting at work relaunching our advertising and marketing engine, reinvigorating our meals & beverage providing, bettering our operations, refreshing our video games platform, and revamping our retailer transform program,” Lal stated in a press release.

Hearken to the earnings name right here.

The Related Press stories:

Learn extra right here.

GameStop (GME) inventory pulled again 5% in after-hours buying and selling after the corporate posted third quarter income that fell wanting estimates.

Within the third quarter, income fell to $821 million for the interval, in comparison with $860.3 million in Q3 final yr. Wall Avenue analysts had been anticipating gross sales of $987 million, in accordance with S&P World Market Intelligence.

The corporate reported diluted income of $0.24 per share, in comparison with estimates of $0.20.

GameStop, which grew to become synonymous with the meme inventory commerce in 2021, has adopted the playbook set by Michael Saylor’s Technique to accumulate bitcoin for a company treasury.

GameStop’s bitcoin holdings had been valued at $519.4 million on the shut of the quarter, in comparison with $528.6 million on the finish of the second quarter.

Reuters stories:

Learn extra right here.

AutoZone (AZO) missed earnings estimates for its fiscal first quarter, sending shares 2% decrease in premarket buying and selling.

The auto components retailer reported income of $31.04 per share on income of $4.62 billion. Wall Avenue analysts had been on the lookout for earnings of $32.40 per share and income of $4.64 billion, in accordance with S&P World Market Intelligence knowledge.

The corporate’s gross revenue decreased by 203 foundation factors to 51% resulting from giant stock expenses as the corporate works by way of tariff-driven worth will increase.

“Value will increase within the business are more likely to persist for couple of extra quarters, earlier than getting again to regular inflationary charges,” UBS analyst Michael Lasser wrote in a word forward of the outcomes. “Thus, normalizing inflation charges will arrange AZO to lap outsized LIFO expenses in FY’26 and get well in FY’27.”

The Campbell’s Firm (CPB) inventory wavered after the meals firm reported declining gross sales and earnings in comparison with the earlier yr.

Within the firm’s fiscal first quarter, internet gross sales decreased 3% yr over yr to $2.67 billion, whereas earnings per share declined to $0.65. Wall Avenue consensus estimates had been for $2.65 billion in income and $0.71 in earnings per share, in accordance with S&P World Market Intelligence.

The Meals & Drinks section noticed gross sales decline 4% yr over yr, whereas gross sales within the Snacks enterprise dropped 2%.

“Customers stay intentional of their buying behaviors with at-home-cooking developments persevering with to profit our manufacturers inside our Meals & Drinks portfolio that ship high quality, comfort and worth,” CEO Mick Beekhuizen stated. “Whereas our Snacks enterprise continues to climate class softness, our manufacturers stay extremely related.”

The corporate reaffirmed its fiscal 2026 steerage for earnings per share to say no 12% to 18% to a spread of $2.40 to $2.55.

Campbell’s got here beneath hearth in late November when an govt was accused of constructing offensive feedback and saying the corporate’s merchandise had been for “poor folks.” Campbell’s launched a press release, saying the manager was not employed on the firm and that that conduct “doesn’t replicate our values and the tradition of our firm.”

Yr so far, the inventory is down 28%.

Hearken to the earnings name stay right here.

Toll Brothers (TOL) inventory fell over 3% in prolonged hours after the high-end homebuilder’s quarterly outcomes confirmed promotional exercise weighing on margins and an earnings miss.

For the fiscal fourth quarter, Toll Brothers reported earnings per share of $4.58, in comparison with estimates of $4.89, in accordance with S&P World Market Intelligence. Income got here in at $3.41 billion, in comparison with estimates of $3.31 billion.

The homebuilder noticed promotional exercise weigh on its house sale margins. Toll Brothers reported a gross margin of 26%, in comparison with estimates of 26.5%. Regardless of decrease mortgage charges, homebuilders are dealing with aggressive pressures as they appear to entice reluctant consumers off the sidelines.

Toll Brothers CEO Douglas Yearley famous “smooth demand” and a “uneven” housing market this yr, although he emphasised that the luxurious enterprise stays differentiated.

Toll Brothers will broadcast its incomes name on Tuesday, Dec. 9, forward of the market open. You possibly can take heed to the decision stay right here.

Mentions of synthetic intelligence on earnings calls crested a brand new peak within the third quarter.

In a word on Friday, FactSet’s John Butters identified that 306 S&P 500 corporations cited the time period “AI” on earnings calls held from Sept. 15 by way of Dec. 4, the very best stage in 10 years. The earlier file for mentions of AI was in Q2 of this yr, with 292 mentions of the time period.

As AI continues to drive the Ok-shaped financial system and market, corporations have been rewarded for mentioning the know-how taking the world by storm.

Butters notes that S&P 500 corporations that point out “AI” have seen the next common worth improve than their non-AI-mentioning counterparts over the previous couple of months and over the previous yr.

Because the chart beneath from FactSet exhibits, corporations that cited AI noticed a median worth improve of 1%, in comparison with a rise of 0.3% for corporations that did not point out AI since Sept. 30. When trying again since Dec. 31, 2024, the distinction is 13.9% and 5.7%, respectively.

Within the week forward, Oracle (ORCL) is bound to gas sentiment on the bogus intelligence build-out when it stories earnings and an replace on its cloud enterprise backlog. The inventory is up 30% yr so far however has come beneath stress prior to now month, down 13% over that interval.

Victoria’s Secret (VSCO) inventory climbed over 13% in premarket buying and selling after the lingerie firm raised its 2025 internet gross sales, working earnings, and earnings steerage, signaling progress in its revitalization efforts.

The corporate forecast full-year internet gross sales within the vary of $6.45 billion to $6.48 billion, in comparison with earlier steerage of $6.33 billion to $6.41 billion. Its adjusted earnings per share for the yr are anticipated to be within the vary of $2.40 to $2.65, in comparison with prior steerage of $1.80 to $2.20.

Victoria’s Secret additionally stated its estimated tariff affect can be about $90 million for the yr, lower than the $100 million initially anticipated.

Victoria’s Secret’s third quarter outcomes had been additionally higher than anticipated, with income beating estimates and the corporate’s internet loss coming in shallower than estimates.

Web gross sales elevated 9% yr over yr to $1.472 billion, above estimates for $1.40 billion, in accordance with S&P World Market Intelligence. The retailer recorded a internet lack of $0.46 per share, which was smaller than the $0.60 per share loss the Avenue was anticipating.

Hearken to Victoria’s Secret’s earnings name right here.

Hewlett Packard Enterprise (HPE) shares fell 4% after the corporate forecast fiscal ‌first quarter income beneath ‌Wall Avenue estimates.

The corporate expects ‍Q1 income within the vary of $9 ​billion to $9.4 ‌billion, in contrast with analysts’ common estimate ⁠of $9.9 billion, ​in accordance ​to knowledge compiled by S&P World Market Intelligence.

Networking income was the standout, rising 150% yr over yr to $2.8 billion. Server income declined by 5% yr over yr to $4.5 billion, whereas hybrid cloud income dropped 12% to $1.4 billion. Monetary companies income was flat in comparison with final yr at $889 million.

For the October quarter, HPE reported adjusted income of $0.62 per share, in comparison with estimates of $0.51.

Income of $9.7 billion grew 14% yr over yr however got here in a bit gentle in comparison with estimates, because the Avenue was anticipating $9.9 billion in income.

Ulta (ULTA) inventory popped 5% in prolonged buying and selling after the wonder retailer reported stable third quarter outcomes and delivered the steerage increase Wall Avenue was on the lookout for.

Ulta beat estimates on the highest and backside strains within the third quarter. Here is a breakdown of the Q3 outcomes, in comparison with Wall Avenue consensus estimates compiled by S&P World Market Intelligence:

“As we stay up for the all-important vacation season, we all know many shoppers’ wallets are pressured and they’re searching for worth,” Kecia Steelman, president and CEO, stated in a press release. “We’re assured in our plans, and our groups are able to make Vacation Occur Right here at Ulta Magnificence, driving pleasure and delivering for our friends and their family members, now and into the brand new yr.”

Ulta additionally modestly raised its full-year outlook. The corporate expects internet gross sales to succeed in “roughly $12.3 billion” for 2025, up from its earlier steerage of $12 billion to $12.1 billion.

Ulta additionally lifted its earnings per share outlook to a spread of $25.20 to $25.50 from $23.85 to $24.30 beforehand. Analysts had been estimating full-year earnings at a midpoint of $24.54.

The Avenue was anticipating Ulta to subject cautiously upbeat steerage, because the retailer’s new, CFO Christopher DelOrefice, begins on Dec. 5.

Hearken to the earnings name stay right here at 4:30 p.m. ET.