Foot Locker Takes A Step Forward

The last two times we spoke about Foot Locker, the stock wasn’t faring well. Inventory and other costs weighed on earnings while the company struggled to spur demand in a weaker consumer environment. And shares were plummeting. đŸ˜Ŧ

Well, the stock is back in the news today, but for a good reason. Its adjusted earnings per share of $0.30 on revenues of $1.99 billion topped expectations of $0.21 and $1.96 billion.

Same-store sales fell 8% YoY, reflecting ongoing consumer softness, a changing mix of vendors, and a 3% impact due to closing some Champs stores. Despite all that, the metric came in better than the 9.7% decline analysts expected. Digital sales fell 5.6% YoY, though excluding Eastbay, which wound down last year, digital sales were actually up 0.4%. đŸ”ē

Inventory remains an issue for the company, with it rising 10.5% YoY, though executives said about half that was strategic as it stocks up for the holiday season. Gross margins remained under pressure due to higher promotional activity and shrink. To spur demand, it signed a multiyear deal with the NBA to gain on-court and social media exposure and will expand to India next year. 👀

Overall, many of the company’s headwinds remain in place, but it’s having slightly more success in addressing them. “Not as bad” results were enough to get the beaten-down stock going, with $FL shares rising 16% on the day to 6-month highs. 👍

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UPS Fails To Deliver (Again)

United Parcel Service returned to the spotlight today, but not for a positive reason. The transportation stock slumped once again after failing to deliver on earnings. ☚ī¸

The shipping giant earned $2.47 per share on $24.90 billion in revenues during the fourth quarter. Those were mixed versus estimates of $2.44 and $25.40 billion, but its operating profit also missed.

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Semis Continue To Tower Over Market

Semiconductors continue to dominate the market and thus dominate our headlines. With that said, today we’ve got a fresh stock breaking out and another setting up, so stick with us. 👇

First up is Tower Semiconductor, an Israeli chip manufacturer that reported results today. The company’s revenue fell 13% YoY to $351.7 million during the fourth quarter but topped the $350 million expected by analysts. Its earnings per share were down about 30% YoY to $0.48, but again, better than anticipated. đŸ”ē

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Nvidia Delivers Bears Another Blow

With it being Nvidia day and all, let’s recap the semiconductor giant’s earnings and reaction. 👇

Before the print, we noted that Nvidia had only seen a downside surprise in earnings vs. expectations three times in the last ten years. However, with analyst estimates high and bullish sentiment roaring into the print, bears thought the contrarian view might have paid off.

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Bears Ravage Regional Bank

While it may seem like last year’s regional banking crisis is well behind us, investors were reminded today that many of the core risks remain. New York Community Bancorp’s earnings were horrendous, so let’s break down the key points. 📝

The New York-based bank reported a fourth-quarter adjusted loss of $0.27 per share, while analysts expected $0.26 in earnings. Revenues of $886 million and net interest income of $740 million missed estimates of $929.5 million and $788.1 million, respectively. đŸ”ģ

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