Investing

Earnings Hits and Misses: Abercrombie, Li Auto, Nordstrom and Zscaler

Paul Ausick

Published: May 26, 2021 10:41 am

Here’s a quick look at some earnings reports that were released after markets closed on Tuesday or before Wednesday’s opening bell.

Nordstrom Inc. (NYSE: JWN) missed by three cents the consensus earnings per share (EPS) estimate, ringing in with a loss per share of $0.64. Revenue, however, beat the consensus by about 3.1%, coming in at $2.92 billion. Compared to the first quarter of 2020, revenue was up by 44.2%, but compared to the first quarter of 2019, sales were down by 13%. Digital sales accounted for 46% of the quarter’s total sales.

The retailer’s shares were pummeled in early trading Wednesday, down more than 9% to $33.11, in a 52-week range of $11.72 to $46.45. The consensus price target on the stock is $35.88. Average daily trading volume of around 3.4 million shares had been doubled in the first half-hour of trading Wednesday.

Cloud security provider Zscaler Inc. (NASDAQ: ZS) beat both top-line and bottom-line estimates after markets closed Tuesday. The company reported EPS of $0.15, more than double the expected $0.07 per share. Revenue of $176.4 million beat the consensus estimate by about 7.8%. Zscaler also boosted fiscal year 2021 (ends in July) guidance for EPS to $0.47, above the consensus estimate of $0.40 with revenue totaling $660 million to $664 million for the year, well above the consensus estimate of $636 million.

Shares traded up nearly 13%, at $194.74 in a 52-week range of $69.83 to $230.88. The consensus price target on the shares is $231.04, and average daily trading volume of about 2 million shares has already been nearly doubled.

Beijing-based EV maker Li Auto Inc. (NASDAQ: LI) reported mixed results before Wednesday’s open. The company reported a loss per share of $0.03, compared with the consensus estimate for a loss of two cents per share. Revenue totaled about $546 million, about 3% better than the consensus estimate for sales of $530 million. The report wasn’t bad, but it was nothing special either. Li Auto’s shares have dropped by more than 26% for the year to date, and the semiconductor shortage is going to further put downward pressure on shares.

The stock traded up by nearly 8.5% Wednesday morning, at $21.68 in a 52-week range of $14.31 to $47.70. The consensus price target is $36.58. Average daily trading volume is around 13.5 million shares, and investors had already traded more than half that many in less than an hour.

Specialty retailer Abercrombie & Fitch Co. (NYSE: ANF) handily beat both top-line and bottom-line estimates. EPS of $0.67 topped the consensus for a loss per share of $0.38, and revenue of $781.5 million was more than 13% higher than the estimate of $688.5 million. Digital sales rose by 45% to $403 million, more than making up for a 20% loss in store square footage.

The stock traded up more than 14% Wednesday morning to $43.51, in a 52-week range of $9.30 to $43.52. The consensus price target is $38.89, and the average daily volume is around 1.5 million shares.