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Semiconductor Stocks Take Profit, Broadcom Falls 14%
Stock futures are mixed this morning as investors take profits in semiconductor stocks following the market reaction to Broadcom's earnings report. Broadcom's reaction suggests the market may be entering a phase where strong results alone are no longer enough if guidance does not materially improve.Economic data continues to point toward a resilient economy. Yesterday's ADP report showed private employers added 122,000 jobs in May, the strongest monthly gain in 16 months and above expectations. That has reinforced the view that the labor market remains healthy despite elevated interest rates. Investors now turn their attention to the jobless claims data and tomorrow's nonfarm payrolls report.Oil prices have eased slightly following reports of progress toward regional de-escalation in the Middle East. At the same time, gold is modestly higher as investors seek safety amid the pullback in technology shares and ongoing geopolitical uncertainty. Treasury yields are slightly lower this morning as traders position ahead of tomorrow's jobs report.In pre-market trading, S&P 500 futures fell 0.29%, Nasdaq futures fell 1.06% and Dow futures rose 0.95%.Check out this morning's top movers from around Wall Street, compiled by The Fly.UP AFTER EARNINGS -Tilly'sup 8%Orion Energyup 7%Caleresup 7%C3 AIup 2%ChargePointdown 1%DOWN AFTER EARNINGS -Broadcomdown 14%CrowdStrikedown 9%Cienadown 8%PVH Corp.down 23%Netskopedown 18%Five Belowdown 11%X-energydown 1%Columbus McKinnondown 1%
U.S.-Iran Conflict Boosts Oil Prices, Weighs on Tech Stocks
A flare-up in the U.S.-Iran conflict involving retaliatory strikes by Tehran targeting U.S. bases in Kuwait and Bahrait has goosed oil prices, weighed on equities, dented the retreat in Treasury yields, and propped up the Vix fear gauge. Defensive sectors - Healthcare and Consumer Staples - were the two best performing sectors of the S&P 500 today, closely followed by Energy. Meanwhile, Basic Materials and Technology - the best areas of the market over the past week - saw some profit-taking as the two worst performers on the benchmark. Among notable individual movers, the recent high-flyers Lumentumand IBMsaw some of the biggest declines in the S&P 500, even though certain AI-buildout winners such as Western Digitaland Sandiskremained firmly bid.Cautious sentiment continues in the evening session, with U.S. equity futures seeing S&P e-minis down 0.5% and Nasdaq 100 contracts down 0.7%. Post-earnings weakness from Broadcomand Crowdstrikeis not helping the tech-heavy indices. In commodities, strong US Dollar has weighed on precious metals with Gold seeing a 1-week low of $4450 earlier and Silver sliding below $73 per ounce. The cautious sentiment has likewise permeated the crypto arena, where Bitcoin has fallen below $65K for the first time since March.Check out this evening's top movers from around Wall Street, compiled by The Fly.HIGHER AFTER EARNINGS -Tilly'sup 22.1%ChargePointup 2.6%C3.aiup 1.4%DOWN AFTER EARNINGS -Netskopedown 20.3%PVH Corp.down 19.5%Broadcomdown 14.9%Petco Health and Wellnessdown 11.8%Five Belowdown 11.1%CrowdStrikedown 11.1%Veeva Systemsdown 5.7%
Company Reports 22.9% Increase in Q1 Net Sales
As part of its Q1 earnings report, the company stated: "Total comparable net sales, including both physical stores and e-commerce ("e-com"), increased by 22.9%."
Company Sees Q2 Revenue of $154M-$160M for Fiscal 2026
Sees Q2 revenue $154M-$160M, one estimate $151.3M. The company states: "Based on current and historical trends, the Company currently estimates the following for the second quarter of fiscal 2026 ending August 1, 2026: Net sales in the range of approximately $154 million to $160 million, translating to an estimated comparable net sales increase of 6% to 10%, respectively, relative to last year's second quarter; Product margins to be flat to up slightly compared to last year's company-record rate for a fiscal second quarter; SG&A expenses to be approximately $48 million to $49 million, excluding any potential non-cash asset impairment charges that may arise; Net income of approximately $3.8 million to $6.0 million, respectively, with a near-zero effective income tax rate due to the continuing impact of a full, non-cash valuation allowance on deferred tax assets; and Net income per diluted share to be in the range of $0.13 to $0.20, respectively, compared to $0.10 for last year's second quarter, with estimated weighted average diluted shares of approximately 30.3 million. The Company currently expects to have 221 stores open at the end of the second quarter of fiscal 2026 compared to 232 at the end of last year's second quarter."
Company Reports Q1 Revenue of $124.7 Million
Reports Q1 revenue $124.7M vs. $107.6M last year. "The turnaround momentum which began in fiscal 2025 continued through the first quarter of fiscal 2026, extending our streak of comparable net sales growth to three consecutive quarters and nine consecutive months, and delivering our fourth consecutive quarter of year-over-year profit improvement," commented Nate Smith, President and Chief Executive Officer. "Returning to profitability is our foremost goal for fiscal 2026. We believe the strength of our start to the fiscal year gives us a clear and credible path to get there, provided we can maintain a strong, positive sales trajectory throughout the year."
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