Kroger Co declined 2.8% to $45.88 after the company reiterated its same store sales excluding gasoline sales for the year. 

Sales in the first quarter increased to $45.1 billion from $44.6 billion and net income increased $962 million and diluted earnings per share increased to $1.32 from 90 cents a year ago. 

The company reaffirmed Identical sales excluding gasoline sales to grow between  1.0% and 2.0%, with underlying growth between 2.5% and 3.5% after adjusting for the effect of Express Scripts. 

Adjusted net earnings per diluted share between $4.45 and $4.60, including an estimated benefit from the 53rd week of approximately $0.15. 

Winnebago Industries, Inc declined 8.1% to $59.01 after the maker of RVs reported sales declined 38% in its latest quarter because of heavier discounting and macroeconomic headwinds. 

Revenue in the fiscal third quarter ending in May declined 38.2% to $900.8 million from $1.5 billion and net income declined 49% to $59.6 million from $117.2 million and diluted earnings per share fell to $1.71 from $3.57 a year ago. 

On May 17 the company declared a quarterly cash dividend of 27 cents per share payable on June 28 to shareholders on record June 14. 

The company completed repurchases of $20 million shares during the third quarter. 

FedEx Corp declined 3% to $224.01 after the parcel delivery company grounded additional planes because of lack of demand. 

FedEx reported weaker-than-expected quarterly revenue but adjusted earnings were ahead of market expectations. 

Revenue in the fiscal fourth quarter ending in May declined 10% to $21.9 billion from $24.3 billion and net income increased to $1.5 billion from $558 million and diluted earnings per share rose to $6.05 from $2.13 a year ago. 

For the fiscal year 2023, revenue declined 4% to $90 billion from $93.5 billion and net income increased 8% to $3.9 billion from $3.8 billion and diluted earnings per share increased to $15.48 from $14.33 a year ago. 

The company forecasted capital spending of $5.7 billion in the fiscal 2024 and estimated diluted earnings per share between $15.0 and $17.0 before accounting for mark-to-market retirement plans adjustments and estimated revenue percentage growth between "flat to low single digit" from the previous year. 

Spirit AeroSystems Holdings Inc dropped 9.2% to $26.95 after the company stopped production at its Kansas plant following workers voting to strike from Saturday. 

Spirit is one of the key parts suppliers to aviation company Boeing. 

Boeing Co declined 2.7% to $206.25 following the strike news Spirit AeroSystems.  

 

Overstock.com Inc increased 7% to $22.66 after the company acquired digital assets and intellectual property of Bed Bath & Beyond at the floor price of $21.5 million in an auction. 

Darden Restaurants, Inc declined 3.8% to $160.0 after the parent of Olive Garden and Longhorn Steakhouse reported better-than-expected quarterly results but forecasted mixed annual outlook. 

Revenue in the fiscal fourth quarter ending in May increased 6.4% to $2.8 billion, driven by same-store sales increase of 4.0% and sales from 47 net new restaurants. 

Same store sales at Olive Garden restaurants increased 4.0% and Longhorn Steakhouse surged 7.1%. 

Net income in the quarter increased to $315.1 million from 281.7 million and diluted earnings per share advanced to $2.58 from $2.44 a year ago. 

Total sales in the fiscal year 2023 increased to $10.5 billion from $9.6 billion and net income soared to $981.9 million from $952.8 million and diluted earnings per share increased to $7.99 from $7.39 a year ago. 

The company increased its quarterly dividend by 8% to $1.31 a share payable on August 1 to shareholders on record on July 10. 

During the quarter, Darden repurchased 0.2 million shares for a total of $35.2 million and at the end of the quarter the company had $652 million available under its $1.0 billion stock repurchase program.  

Accenture Plc declined 1.9% to 301.38 a day after the information technology services provider reported better-than-expected sales and earnings but trimmed its annual revenue growth outlook slightly.  

Revenue in the fiscal third quarter ending in May increased 3% to $16.6 billion and 5% in local currency. 

New bookings in the quarter totaled $17.2 billion, including consulting bookings of $8.9 billion and  managed services bookings of $8.3 billion.

Net income increased to $2.0 billion from $1.78 billion and diluted earnings per share rose to $3.15 from $2.79 a year ago. 

The company forecasted fiscal fourth quarter revenue between $15.75 billion and $16.35 billion, an increase between 2% and 6% in local currency. 

The company trimmed its full-year revenue growth estimate to a new range between 8% and 9%, from the previous range between 8% and 10%. 

The company increased its quarterly dividend by 15% to $1.12 a share to holders of stock on July 13 payable on August 15. 

Accenture repurchased 2.8 million of its own shares for $789 million during the fiscal third quarter and about $3.5 billion are still available for its stock repurchase at the end of May. 

CarMax, Inc increased 9% to $85.37 after the used car retailer reported better-than-expected quarterly results. 

Revenue in the fiscal first quarter 2024 ending in May decreased 17.4% to $7.7 billion after retail unit sales fell 9.6% and same store unit sales dropped 11.4% and wholesale unit eased 13.6% from a year ago. 

Net earnings declined to $228.3 million from $252.2 million and diluted earnings per share fell to $1.44 from $1.56 a year  ago. 

Average selling retail price of a used car decreased 5.5% to $27,258 from $28,844 and wholesale price fell 17.9% to $9,024 from $10,996 a year ago. 

During the first quarter, the company did not repurchase its common stock and still had $2.45 billion available in its stock repurchase plan.    

Amedisys agreed to merge with a subsidiary of UnitedHealth Group, upending its plan to just six weeks ago. 

The home-healthcare, hospice and high-acuity care provider accepted an all-cash $101 a share or $3.29 billion offer from Optum. 

The merger agreement is conditional based on regulatory approval and shareholder approval and customary closing conditions. 

On May 3, Amedisys and Option Care Health agreed to combine in an all-stock deal that valued Amedisys at $3.6 billion or $97.38 a share. 

On June 5, Optum made an unsolicited offer to acquire Amedisys for $100 a share.

Amedisys board of directors accepted a slightly lower but all-cash deal. 

Compensation committee approved one-time equity award grants of time-based restricted stock units that vest ratably over three years. 

Amedisys CEO Richard Ashworth will receive $2.5 million grant date value, and CFO Scott Ginn will receive $1.5 million grant date value, effective from the date of merger in exchange for not agreeing to leave the company for six months after the completion of the merger. 

 

PacWest Bancorp jumped 7% to $7.71 after the company sold a $3.5 billion specialty finance portfolio of senior and secured maturities to Ares Management. 

Lucid Group jumped 9.4% to $5.47 after the company signed an agreement with the UK-based Aston Martin to supply power train and battery systems. 

Aston also agreed to sell 3.7% stake in the company to Lucid for $232 million. 

Carnival Corp increased 1.9% to $16.10 ahead of the release of the company's quarterly results. 

Revenue in the quarter ending in May increased to $4.9 billion from $2.4 billion and net loss shrank to $407 million from $1.8 billion and diluted loss per share dropped to 32 cents from $1.61 a year ago. 

For the full year 2023, the company forecasted adjusted EBITDA of $4.10 billion to $4.25 billion, above March guidance's range and with a midpoint increase of $175 million. 

Cruise stocks have been on upswing since April on the expectations of a rebound in reservations after travel demand recovered following the Covid-19 pandemic. 

Walgreens Boots Alliance Inc dropped 8.9% to $28.97 after the pharmacy retail chain reported lower-than-expected fiscal third quarter earnings. 

The company  also lowered its full-year earnings outlook.  

Revenue in the fiscal third quarter ending in May increased to $35.2 billion from $32.6 billion and net earnings attributable to shareholders plunged to $118 million from $289 million and diluted earnings per share dropped to 14 cents from 33 cents a year ago. 

For the full fiscal year 2023, Walgreens Boots Alliance now expects adjusted earnings per share between $4.00 and $4.05 from the previous estimate of $4.45 to $4.65, reflecting challenging consumer and macroeconomic conditions, and lower COVID-19 vaccine and testing volumes.

For the fiscal year 2024, the company is forecasting "low- to mid-single digit adjusted operating income growth, with the U.S. Healthcare and U.S. Retail Pharmacy performance more than offsetting headwinds from lower sale and leaseback program benefits, lower COVID-19 contribution, and the sale of holdings in AmerisourceBergen."

Durable Goods Orders Accelerated In May

Durable goods orders rose more than expected and new home sales also advanced. 

Durable goods orders expanded in May 1.7%, faster than upwardly revised 1.2% in April, the Commerce Department reported Tuesday. 

Excluding transportation equipment orders, durable goods orders rose 0.6% in May after dropping by a revised 0.6% in April.

Excluding defense orders, which declined 14.7%, durable goods orders rose 3%.

Durable goods shipments increased 1.7% to $282.7 billion, following a 0.6% decrease in April. 

Shipment of transportation equipment increased 4.6% to $91.8 billion. 

Closely watched non-defense capital goods orders increased 6.7% to $91.0 billion and shipments increased 3.4% to $82.9 billion and unfilled orders advanced 1.1% to $758.7 billion. 

Non-defense capital goods orders, excluding aircraft orders, rose 0.7% in May from April. 

New Home Sales Jumped In May

New home sales jumped 12.2% to 763,000 on a seasonally adjusted basis, U.S. Census Bureau reported Tuesday. 

The annual rate jumped to a high not seen since February of last year and increased 20% from a year ago when the annual rate estimate was 636,000. 

The median sales price of new houses sold in May was $416,300 and the average sales price was $487,300 compared to $450,700 and $521,500 respectively a year ago. 

Home sales in the Northeast increased 17.6% to 40,000, in the West rose 17.4% to 175,000, in the Midwest increased 4.1% to 77,000 and in the South jumped 11.3% to 471,000.