Dell Technologies reported better-than-expected adjusted earnings and revenue in the fourth quarter, as the personal computer maker continues to see strong demand for artificial intelligence servers. The company said its AI server backlog now reaches $2.9 billion, compared to $1.6 billion last quarter. Dell shipped $1.5 billion in AI servers over the last two quarters, and said it has a pipeline of interest in AI servers that represents “multipliers” of its existing backlog. Dell also said it would increase its annual cash dividend by 20% to $1.78 per share. Shares rose 27%.
Spirit Aerosystems stock rose 16% to $33.06 after The Wall Street Journal reported that Boeing is in talks to acquire the struggling parts supplier. Spirit has hired bankers to explore strategic options and has held preliminary discussions with its former owner, the newspaper reported, citing people familiar with the matter. The newspaper confirmed that the talks may not result in an agreement.
New York Community Bancorp stock fell 24% after revealing that fourth-quarter earnings would take a $2.4 billion loss from goodwill impairment charges, and separately that it had identified “material weaknesses” in its loan review process. The bank said the weaknesses resulted from ineffective oversight, risk assessment and monitoring activities. The regional lender also announced that CEO Thomas Cangemi will step down after 27 years at the bank.
Advertisement – Scroll to continue
NetApp rose 25% after issuing strong guidance for 2024. The data storage company said it expects adjusted earnings for the year of $6.40 and $6.50 per share, compared with a previous forecast of $6.05 to $6.25. NetApp expects 2024 revenue to reach $6.185 billion to $6.335 billion.
Autodesk reported fourth-quarter adjusted earnings of $2.09 per share, better than Wall Street estimates, and revenue of $1.47 billion also beat expectations. The stock rose by 2.6%. Autodesk said it expects fiscal 2025 sales to range from $5.99 billion to $6.09 billion, higher than Wall Street's forecast of $5.96 billion. CEO Andrew Anagnost, in an interview with Baronhighlighted the opportunities offered by a design software company with generative AI.
Cybersecurity company Zscaler reported fiscal second-quarter adjusted earnings that beat analyst estimates as revenue rose to $525 million from $388 million a year earlier. Zscaler expects third-quarter adjusted earnings of 64 cents to 65 cents per share on revenue of $536 million. Analysts were calling for third-quarter earnings of 58 cents per share on revenue of $532 million. But Zscaler shares fell 9.1%.
SoundHound AI
,
The AI voice technology company narrowed its losses in the fourth quarter with an 80% jump in sales, boosted by a contribution from a “prominent AI chip company,” according to CEO Kevan Mehajer, who declined to disclose customer information. name. This company is believed to be Nvidia
.
Although the stock fell 11% as Q4 sales of $17.1 million beat estimates of $17.7 million. SoundHound
Advertisement – Scroll to continue
It also forecast that it would be profitable this quarter on an adjusted EBITDA basis. But the company actually lost $3.7 million on this basis.
Sweetgreen stock rose 28% after the salad restaurant chain issued first-quarter revenue guidance above analyst estimates. The company said it expects first-quarter revenue to range from $150 million to $154 million versus analyst estimates of $147.8 million.
Flexible
,
The enterprise data software company reported fiscal third-quarter adjusted earnings and sales that beat Wall Street estimates, and said it expects fourth-quarter sales of $328 million and $330 million, compared with expectations of $327 million. Shares fell 15%.
Fisker
,
The electric car startup reported weaker-than-expected fourth-quarter sales and issued a “continuation” warning with its update. Fisker
Advertisement – Scroll to continue
It said it was in “negotiations with a large automaker regarding a potential deal that could include investment in Fisker, joint development of one or more electric vehicle platforms, and manufacturing in North America.” The company also said it intends to reduce its workforce by about 15%. The stock fell 44% to 41 cents.
Write to Joe Woelfel at joseph.woelfel@barrons.com
“Devoted student. Bacon advocate. Beer scholar. Troublemaker. Falls down a lot. Typical coffee enthusiast.”