Smiley face
Weather     Live Markets

Several companies made headlines in after-hours trading, including Robinhood, which added 4.5% after announcing a $1 billion share repurchase program. The program is expected to be executed over a two- to three-year period starting in the third quarter of 2024. Cava Group saw its stock drop 5% despite posting earnings and revenue for the first quarter that exceeded expectations. The restaurant chain reported earnings of 12 cents per share on revenue of $259 million, beating analysts’ estimates.

Box, a cloud storage company, added 1.2% after reporting better-than-expected earnings and revenue. The company reported adjusted earnings of 39 cents per share, surpassing analysts’ expectations. Revenue came in at $264.7 million, higher than the anticipated $262 million for the quarterly period. Microchip Technology saw its shares dip 2.8% after announcing plans to raise $1.1 billion worth of convertible senior notes due 2030 in a private offering, subject to market conditions.

American Airlines slid more than 6% after slashing its outlook for sales in the second quarter. The airline now expects adjusted earnings of $1 to $1.15 per share for the period, down from previous guidance of $1.15 to $1.45 per share. This updated outlook is also below FactSet’s consensus expectations for $1.30 per share. Shares of Delta Air Lines and United also slid about 2% in sympathy with American Airlines.

Overall, the market reaction to these companies’ after-hours news varied, with some like Robinhood and Box seeing gains while others like Cava Group and Microchip Technology experienced declines. The news of a share repurchase program boosted Robinhood’s stock, while Cava, despite posting strong earnings and revenue, saw its shares drop. Box’s better-than-expected earnings and revenue performance led to a slight increase in its stock price, while Microchip Technology’s announcement of a convertible senior notes offering resulted in a decline in its shares.

American Airlines’ downward revision of its second-quarter sales outlook significantly impacted its stock price, leading to a more than 6% decline. The adjusted earnings guidance was also lower than expected, causing further selling pressure on the stock. The negative news from American Airlines also had a ripple effect on other airline stocks, with Delta Air Lines and United both experiencing declines in after-hours trading as well. The varied reactions to the earnings and announcements from these companies showcase the diverse factors influencing stock price movements in after-hours trading.

© 2024 Globe Echo. All Rights Reserved.