Dow Jones Newswires: Smith & Wesson stock drops after earnings, sales miss expectations

Shares of firearm maker Smith & Wesson Brands Inc.
SWBI,
+1.82%

fell 12.5% in after-hours trading as results for the latest quarter came in lighter than expected.

The company reported net sales for its second quarter of $230.5 million, down 7.3% from a year earlier. Analysts polled by FactSet were expecting sales of $265 million.

Adjusted earnings of $1.13 a share were short of the $1.29 analysts were expecting.

Smith & Wesson shares closed Thursday at $22.91 apiece, up 1.8%. The stock is up 29% so far this year.

Write to Robert Barba at robert.barba@wsj.com

Dow Jones Newswires: National Beverage, maker of La Croix, will pay investors $3 a share with special dividend

National Beverage Corp.
FIZZ,
-0.37%

on Thursday said its board declared a special cash dividend of $3 per share.

The company said the dividend will be paid on or before Feb. 11 to shareholders of record on Dec. 13.

“With this special cash dividend, our eleventh in the past 17 years, Fizz holders will have received $13.28 per share or over $1.2 billion,” a company spokesperson said.

National Beverage’s brands include La Croix, Clear Fruit and Shasta.

Write to Stephen Nakrosis at stephen.nakrosis@wsj.com

Deep Dive: Investors eagerly buy the dip — here are the losing stocks that became winners Thursday

U.S. stocks rebounded Dec. 2 with a bounce into the close from a widespread wipeout the day before. Investors were eager to buy the dip, as you can see from the list below.

On Dec. 2, the Dow Jones Industrial Average
DJIA,
+1.82%

rose 1.8%, reversing its 1.3% slide the previous day. The benchmark S&P 500 Index
SPX,
+1.42%

climbed 1.4%, following the previous session’s 1.2% slide. And the Nasdaq Composite Index
COMP,
+0.83%

was up 0.8%, partially making up for the previous day’s 1.8% decline.

On Dec. 2, 82% of S&P 500 stocks rose at least 1%, after 57% had fallen at least that much the day before.

Here’s a breakdown of percentage declines for the S&P 500 on Dec. 1:

Percentage decline Dec. 1

Number of stocks

10% or more

2

5.0% to 9.99%

15

3.0% to 4.99%

52

1.0% to 2.99%

216

Source: FactSet

And here’s a breakdown of percentage increases for Dec. 2:

Percentage increase Dec. 2

Number of stocks

10% or ore

1

5.0% to 9.99%

36

3.0% to 4.99%

151

1.0% to 2.99%

220

Source: FactSet

Investors rush in

For the following list, we rounded up to 5%. Among the S&P 500, 21 stocks fell at least 5% on Dec. 1, and 12 bounced back at least that much Dec. 2. The list is sorted by the Dec. 1 declines:

Company

Ticker

Price decline – Dec. 1

Price change – Dec. 2

Price change – 2021

Moderna Inc.

MRNA,
-2.94%
-11.9%

-2.9%

188.6%

salesforce.com Inc.

CRM,
+3.86%
-11.7%

3.9%

17.4%

Norwegian Cruise Line Holdings Ltd.

NCLH,
+7.70%
-8.8%

7.7%

-24.7%

Fortinet Inc.

FTNT,
+2.57%
-8.1%

2.6%

110.8%

American Airlines Group Inc.

AAL,
+7.00%
-8.0%

7.0%

10.5%

Royal Caribbean Group

RCL,
+7.17%
-7.9%

7.2%

-7.8%

Caesars Entertainment Inc.

CZR,
+8.38%
-7.8%

8.4%

21.2%

United Airlines Holdings Inc.

UAL,
+6.61%
-7.6%

6.6%

-3.7%

ServiceNow Inc.

NOW,
+3.97%
-7.4%

4.0%

13.3%

Delta Air Lines Inc.

DAL,
+9.28%
-7.4%

9.3%

-8.9%

Carnival Corp.

CCL,
+9.22%
-7.0%

9.2%

-17.4%

Penn National Gaming Inc.

PENN,
+5.01%
-6.6%

5.0%

-41.8%

Wynn Resorts Ltd.

WYNN

-6.1%

8.2%

-27.1%

Advanced Micro Devices Inc.

AMD,
+1.05%
-5.8%

1.1%

64.3%

Etsy Inc.

ETSY,
-3.75%
-5.6%

-3.7%

40.3%

CF Industries Holdings Inc.

CF,
+3.51%
-5.4%

3.5%

53.2%

Enphase Energy Inc.

ENPH,
-0.79%
-5.3%

-0.8%

33.9%

Boeing Co.

BA,
+7.54%
-4.9%

7.5%

-5.5%

Bath & Body Works Inc.

BBWI,
+4.06%
-4.7%

4.1%

147.9%

Alaska Air Group Inc.

ALK,
+6.98%
-4.7%

7.0%

-4.8%

Las Vegas Sands Corp.

LVS,
+4.74%
-4.6%

4.7%

-40.3%

Source: FactSet

Click on the tickers for more about each company. Click here for Tomi Kilgore’s detailed guide to the wealth of information for free on the MarketWatch quote page.

It was fascinating to see Moderna Inc.
MRNA,
-2.94%

continue its slide Dec. 2, following such a big decline for the previous day for the maker of coronavirus vaccines. Josh Nathan-Kazis described patent disputes that have investors concerned about the stock.

Don’t miss: Tesla’s stock is still cheap, says manager of new ETF who made Musk’s EV company its No. 1 holding

Mark Hulbert: Stocks are soaring again but here’s why you should look out below

“Happy days are here again” is what bullish investors would have you believe after Thursday’s huge U.S. stock market rally. The Dow Jones Industrial Average
DJIA,
+1.82%

rose more than 600 points, or 1.8%, while the Russell 2000 index
RUT,
+2.74%

of small- and midcap stocks jumped 2.7%.

Yet there’s something too convenient about this refrain. The market’s decline over the past couple of weeks has failed to ease investors’ exuberance. Contrarians therefore are skeptical that this rally will last.

Consider the average recommended equity exposure level among a subset of Nasdaq-focused stock market timers that my firm monitors on a daily basis. (This average is what’s reflected in the Hulbert Nasdaq Newsletter Sentiment Index, or HNNSI.)

Since the Nasdaq
COMP,
+0.83%

responds especially quickly to changes in investor mood, and because those timers are themselves quick to shift their recommended exposure levels, the HNNSI is my most sensitive barometer of investor sentiment in the U.S. equity market.

At its lowest point earlier this week, the HNNSI was still higher than 37% of all other daily readings back to 2000. In other words, the typical Nasdaq-focused market timer became only barely more pessimistic than neutral. That does not constitute the veritable “wall of worry” that the market likes to climb.

This is illustrated in the chart below. The most sustainable rallies of the past were launched when the HNNSI was in the bottom decile of its historical distribution (the shaded region at the bottom of the chart). In contrast, rallies that began when the HNNSI was well above that bottom decile were, on balance, more anemic.

It’s especially important currently for the HNNSI to drop into that bottom decile because of how much bullish exuberance existed until recently. As I pointed out in a column a week ago, the HNNSI as recently as Nov. 17 was higher than 97.7% of all daily readings since 2000. A drop to the 37th percentile of the historical distribution isn’t far enough to wring extreme optimism out of the market.

The best thing that could happen to the stock market’s shorter-term prospects, from a contrarian point of view, would be for the decline to resume in fairly short order and sentiment, in turn, to become extremely pessimistic. In that case, contrarians could envision a rally that propels the market averages to significant new all-time highs.

If this scenario doesn’t play out, look for the market’s strength to last no more than a couple of weeks and for the market averages to make it no further than back to the vicinity of its previous highs. While it’s too early to know which path the market will take, contrarians feel no need to guess, since they are willing to let the market tell its story in its own time.

Contrarians nevertheless already know enough to conclude that Thursday’s rally is built on a flimsy sentiment foundation.

Mark Hulbert is a regular contributor to MarketWatch. His Hulbert Ratings tracks investment newsletters that pay a flat fee to be audited. He can be reached at mark@hulbertratings.com

More: The Nasdaq and the Dow are now trading in a way that was evident just before the internet bubble burst

Plus: In his final warning, this stock trading wizard — who made big money in bear markets and crashes — called this market a bubble like no other

Dow Jones Newswires: Owens Corning Raises Dividend to 35c >OC

Owens Corning is raising its quarterly dividend to 35 cents a share, citing the company’s financial performance thus far and cash flow generation.

The new dividend will be payable on Jan. 21 to shareholders of record as of Jan. 7.

For the first nine months of the year, the company has reported a profit of $768 million on $7.37 billion in net sales, compared with a year-earlier loss of $615 million and $5.13 billion in sales.

Company officials said Owens Corning
OC
generated $1.2 billion of operating cash flow and $925 million of free cash flow for the first nine months of the year.

Write to Maria Armental at maria.armental@wsj.com

: Lyft names Elaine Paul, formerly of Amazon Studios and Hulu, as new CFO

Lyft Inc. on Thursday named a new chief financial officer, Elaine Paul, to replace Brian Roberts, who is moving on to a yet-unknown company.

The resignation of Roberts, who had been CFO of Lyft
LYFT,
+7.67%

since 2014 and who helped the company go public two years ago, was effective Dec. 1. He will stay on until June 2022 as an adviser during the transition, though Chief Executive Logan Green is set to act as CFO until Green’s appointment becomes effective Jan. 3, according to the company’s filing with the Securities and Exchange Commission.

Elaine Paul, former chief financial officer at Amazon Studios and Hulu, will be Lyft’s new CFO effective Jan. 3, 2022.


Lyft Inc.

In a statement, Green expressed gratitude for Roberts’ contribution and said he was “instrumental in helping us scale the business.”

The filing said Roberts’ departure was “not the result of any dispute or disagreement with the company, its board of directors, or its management, or any matter relating to the company’s operations, policies or practices.”

Roberts said in a LinkedIn post, in which he thanked his Lyft colleagues, that he is moving on to a company that he did not name. “I have found an exciting frontier opportunity with mission-driven founders focused on serving their community,” he said.

Paul, 54, was most recently CFO at Amazon Studios, and before that Hulu and Walt Disney Co.

Paul will be paid a $450,000 annual salary and a $1.5 million signing bonus, plus the company is granting her $16 million worth of stock options and $200,000 a year for commuting and corporate housing expenses, according to Lyft’s filing with the SEC.

: DocuSign stock plunges more than 25% as pandemic boom appears to dissipate

DocuSign Inc. shares plummeted more than 25% in after-hours trading Thursday, after the company’s billings and revenue forecast missed expectations and the chief executive admitted a pandemic boom wore off in the quarter.

DocuSign
DOCU,
+1.31%

easily topped third-quarter expectations with its earnings report Thursday afternoon, but the company’s billings — which reflect future business under contract — and fourth-quarter forecast came in lighter than expected. In a statement, the electronic-signature company’s chief executive said the immense growth experienced during the COVID-19 pandemic appeared to be dissipating.

“After six quarters of accelerated growth, we saw customers return to more normalized buying patterns, resulting in 28% year-over-year billings growth,” CEO Don Springer said in Thursday’s announcement.

DocuSign shares dove more than 25% to prices that would be a 52-week low in the extended session, a move that would wipe away more than $10 billion in market capitalization if it maintains through Friday’s trading session. DocuSign was worth less than $20 billion when the pandemic began, but spiked beginning in April 2020 to a market cap of more than $40 billion as businesses sought to complete deals without the ability to sign documents in person.

DocuSign reported a third-quarter loss of $5.7 million, or 3 cents a share, on sales of $545.5 million, up from $382.9 million a year ago. After adjusting for stock-based compensation and other effects, the company reported earnings of 58 cents a share, up from 22 cents a share a year ago. Analysts on average expected adjusted earnings of 46 cents a share on sales of $532.6 million, according to FactSet, a bar that DocuSign easily cleared.

However, the company reported billings of $565.2 million, short of its own guidance for $585 million to $597 million as well as analysts’ average forecast of $594 million. For the fourth quarter, management guided for revenue of $557 million to $563 million and billings of $647 million to $659 million, while analysts on average were projecting sales of $575 million and billings of $705.4 million, according to FactSet.

After spiking early in the pandemic, DocuSign shares had already leveled off in 2021, gaining 5.2% so far this year as the S&P 500 index
SPX,
+1.42%

added 20.2%.

Resources for Reskilling: Worker Retraining Programs

If you want to change your work life, you’ll likely need a new degree or certificate. There are many challenges to getting “reskilled.” These obstacles can be practical — like a lack of time or money — or emotionally rooted, as it’s a daunting prospect for any adult.

Whether you want to go back to school or are attending for the first time, knowing where to start is the first step.

Here’s a roundup of resources, including worker retraining programs, to help you kickstart the process of gaining new skills and credentials. Many of these programs and services are free, and many others are eligible for federal financial aid. Each are noted where applicable.

Federal and state support

Start with your state’s workforce development investment board, which can direct you to training opportunities, suggests Pamela Egan, director of the Labor Management-Partnerships Program for the University of California, Berkeley Labor Center.

Egan says the system isn’t flawless, but it’s accessible and free through public funding via the federal Workforce Innovation and Opportunity Act.

Additional government resources for job retraining

  • Federal Workforce Innovation and Opportunity Act programs:

    • Job Corps: A free residential education and job training program for young adults ages 16-24.

    • CareerOneStop job centers: Career training services under the U.S. Department of Labor, Employment and Training Administration through 2,400 American Job Centers.

    • YouthBuild: Nearly 300 nonprofit programs throughout the United States that offer training and opportunities for unemployed youth who have often not finished high school and may have struggled with unemployment, poverty and crime.

Federal resources to explore career options

Employer training programs

Employers in your area may offer:

Traditional college

Traditional four-year colleges offer a variety of degree options and typically result in higher earnings than other training programs, depending on your area of study.

Sometimes, students who attended a four-year school will need to attend graduate school to enter their intended field. Others may pursue a master’s degree for a different career path than their undergraduate education.

Use the College Scorecard — a database from the U.S. Department of Education — to compare colleges and their programs. It displays useful data for evaluating schools and majors, including graduation rates, costs, typical debt and student outcomes.

The price of these programs varies, but they’re eligible for federal student aid.

Community college programs

Public two-year colleges offer career training certificates and associate degrees. There are also 23 states with community colleges that offer bachelor’s degree programs.

Students typically pursue one of two paths:

  • Career training through technical programs.

  • Two-year programs with the intent to transfer to a four-year college.

Community college programs are usually inexpensive and students are eligible for federal student aid.

Free college programs

There’s no national free college program, but your state may offer one. They are usually “last-dollar” scholarship programs, which means the funds will cover remaining tuition after any federal and state grant money.

The programs may cover four-year schools, community college or a degree for certain high-demand fields of study.

Trade schools and short-term certificate programs

Trade schools offer hands-on training for students to enter a specific field. These are typically certificate programs that last one to two years or less.

The cost of trade school can vary and you could get similar training to enter a particular field through community college instead. Many schools may be eligible for federal student aid, but not all short-term and noncredit programs will.

Apprenticeship programs

Apprenticeships are paid, full-time positions offering hands-on learning through a combination of on-the-job experience and classroom instruction. Training and wages are typically provided by an individual employer.

According to the Bureau of Labor Statistics, these are professions that typically have apprenticeship programs in the United States:

  • Boilermakers.

  • Carpenters.

  • Electricians.

  • Elevator installers and repairers.

  • Insulation workers, mechanical.

  • Ironworkers.

  • Masonry workers.

  • Millwrights.

  • Musical instrument repairers and tuners.

  • Plumbers, pipefitters and steamfitters.

  • Sheet metal workers.

Earnings Results: Ulta Beauty stock rallies after Q3 beat shows ‘resiliency’ of beauty industry

Ulta Beauty Inc. shares rose more than 6% in the extended session Thursday after the specialty retailer reported sales and profit well above Wall Street expectations and raised its guidance for the year, saying the results showed the “strength and resiliency of the beauty category.”

Ulta
ULTA,
+3.68%

said it earned $215.3 million, or $3.94 a share, in the fiscal third quarter, compared with $74.8 million, or $1.32 a share, in the third quarter of fiscal 2020. Adjusted for one-time items, Ulta earned $1.64 a share.

Related: Dollar General says it’s committed to offering $1 merchandise

Sales rose 29% to $2 billion, compared with $1.6 billion a year ago. The company pinned the increase to “favorable impact from stronger consumer confidence and fewer COVID-19 restrictions” compared with the year-ago quarter.

FactSet consensus called for EPS of $2.48 on sales of $1.89 billion.

Same-store sales rose 26% in the quarter, compared with a 9% drop in the third quarter of 2020, Ulta said. Compared with the 2019 quarter, comparable-store sales rose 14%, the company said.

“This strong third-quarter performance reflects the strength and resiliency of the beauty category, the power of the Ulta Beauty differentiated model, and the impact of our winning culture and team,” Chief Executive Dave Kimbell said in a statement.

See also: Olaplex products headed to Ulta in January 2022

The retailer guided for full-year revenue between $8.5 billion and $8.6 billion, compared with a prior guidance of revenue between $8.1 billion and $8.3 billion.

It called for a same-store sales rise between 36% and 37%, versus a previous guidance of between 30% and 32%. It pegged EPS between $16.70 and $17.10 for the year, from a previous expectation of EPS between $14.50 and $14.70.

Ulta said its merchandise inventories totaled $1.92 billion at the end of the quarter, compared with $1.44 billion a year ago.

The increase was due to the addition of 40 net new stores opened since October 2020, and “the acceleration of inventory receipts to support expected demand and mitigate anticipated global supply-chain disruptions.”

Share of Ulta Beauty have gained about 34% this year, compared with gains of around 22% for the S&P 500 index
SPX,
+1.42%

in the same period.

: Zillow says it has sold more than half the homes it owns, commits cash to stock repurchases

Zillow Group Inc. revealed Thursday afternoon that it has sold or is int he process of selling more than half the homes it purchased in a home-buying spree earlier this year that led the company to end its Offers business.

Zillow
Z,
+2.36%

ZG,
+2.65%

surprised investors last month by announcing it would end its Zillow Offers home-buying business and lay off a quarter of its staff after buying nearly 10,000 homes in the third quarter at prices that projected to lead to huge losses. On Thursday, the company announced that revenue in the division will top its previous estimates, and executives plan to use some of the cash they built up to purchase homes to instead repurchase $750 million in stock.

“We are pleased with the progress of our wind-down efforts and recognize that no longer operating Zillow Offers will allow us to have a more capital-efficient balance sheet and business moving forward,” Zillow Chief Executive Rich Barton said in a statement. “With that, we see today as an opportune time to announce a share repurchase program and reduce the cash balance we built up to support Zillow Offers.”

Opinion: Zillow thought it could rule the housing market. It was very wrong.

Zillow stated that more than 50%of the homes are now under contract or that it has agreed on disposition terms for them. Management now expects revenue of $2.3 billion to $2.9 billion for the home-buying business in the fourth quarter, after previously stating guidance of $1.7 billion to $2.1 billion. Executives said Thursday they continue to believe that the wind-down of the business will be cash-flow neutral at least, including the repayment of nearly $3 billion in secured debt.

Zillow shares gained more than 5% in after-hours trading following the announcement. The stock was pummeled in the wake of last month’s announcement, and ended Thursday’s regular session down 45.2% in the past three months. Overall, Zillow shares are down 58.2% so far this year, while the S&P 500 index
SPX,
+1.42%

has gained 20.2% in that time.

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