Brown-Forman Plunges as Spirits Maker Warns on Outlook
12 minutes ago
Brown-Forman (BF.B) was the worst-performing stock in the S&P 500 Thursday after the maker of Jack Daniel’s whiskey warned about a “challenging” economic outlook this year.
The company that also has brands such as Woodford Reserve, Chambord, and Korbel predicted the operating environment in fiscal 2026 will have “low visibility due to macroeconomic and geopolitical volatility as we face headwinds from consumer uncertainty, the potential impact from currently unknown tariffs, and lower non-branded sales of used barrels.”
Brown-Forman sees both full-year organic sales and organic operating income to drop by a low-single-digit percent.
CEO Lawson Whiting said Brown-Forman faced “softening consumer demand” as well as “an exceptionally challenging macroeconomic environment,” and that it expects “continued headwinds.”
The company reported fiscal 2025 fourth-quarter earnings per share of $0.31, with revenue falling 7% year-over-year to $894 million. Both were short of Visible Alpha forecasts.
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Shares of Brown-Forman sank more than 15% in recent trading to their lowest level since September 2013.
–Bill McColl
Tesla Sinks as Musk-Trump Fracas Intensifies
1 hr 58 min ago
Tesla (TSLA) shares dropped Thursday, falling for a second straight day, amid a public spat between CEO Elon Musk and President Donald Trump.
The stock was down nearly 9% in recent trading, extending Wednesday’s decline. It has lost about one-quarter of its value since the start of the year.
Musk left his role in the Trump administration last week. He has since attacked the Trump-backed budget reconciliation bill currently working its way through Congress, calling it a “disgusting abomination,” and urging the Senate to “kill the bill.” Trump at an event with the Chancellor of Germany on Thursday said he is “very disappointed” in Musk’s recent attacks.
Trump said that Musk “knew everything” about the bill, and claimed that the Tesla CEO only turned against the bill because of the cuts it would make to electric vehicle mandates and programs. “Elon and I had a great relationship,” Trump said. “I don’t know if we will anymore.”
Francis Chung / Politico / Bloomberg / Getty Images
“Whatever,” Musk said in a post responding to a video of Trump’s comments. “Keep the EV/solar incentive cuts in the bill, even though no oil & gas subsidies are touched (very unfair!!), but ditch the MOUNTAIN of DISGUSTING PORK in the bill.”
In a separate post, Musk called Trump’s assertion that he knew details about the bill “false,” and said that members of Congress did not read it before voting on it.
“Without me, Trump would have lost the election,” Musk posted minutes later.
Tesla has also gotten more disappointing sales news in recent days: Auto industry groups in several European countries reported sales data for May showing declines in Tesla sales as overall EV sales rose. Despite the weak sales, some analysts have pointed to the planned launch of fully autonomous Tesla rides in Austin, Texas this month as a coming positive catalyst for the stock.
The stock’s recent declines have rolled back some of Tesla’s gains after Musk in April said he would spend more time at his companies, and left the Trump administration in May.
–Aaron McDade
What Analysts Think of Broadcom Ahead of Earnings Thursday
2 hr 59 min ago
Broadcom (AVGO) is scheduled to report fiscal second-quarter results after the closing bell Thursday, with Wall Street expecting growing revenue and profits fueled by demand for AI chips.
Analysts on average expect Broadcom to report revenue of $15.02 billion, up 20% year-over-year, and adjusted net income of $7.8 billion, up from $5.39 billion a year ago. AI revenue is expected to climb 42% year-over-year and 7% sequentially to $4.42 billion.
Oppenheimer analysts called Broadcom the “No. 2 AI franchise after NVDA,” in a note to clients last week, raising their price target to $265 from $225. Broadcom’s “core franchises in networking, wireless, broadband, server/storage, and software support sustainable growth,” the analysts said. “We remain long-term buyers.”
Of the 14 analysts tracked by Visible Alpha, 13 have a “buy” or equivalent rating for Broadcom stock, with one “hold.” However, their consensus price target near $252 would suggest a decline from the stock’s current level. The stock was up 1% at $264 in recent trading, nearing an all-time high.
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After Nvidia’s (NVDA) strong sales report last week, Morgan Stanley analysts said they “also are positive on [Broadcom] in the AI space, but we are hard pressed to generate additional enthusiasm.”
–Andrew Kessel
Stablecoin Issuer Circle Prices IPO Above Expected Range
3 hr 53 min ago
Fintech firm Circle Internet Group, which issues the USDC stablecoin, on Wednesday priced its upsized initial public offering above its expected range.
The offering now totals 34 million shares at $31 each, up from 32 million shares at an expected range of $27 to $28 announced Monday. The company is offering 14.8 million shares and selling stockholders 19.2 million shares, Circle said, adding underwriters have a 30-day option to purchase up to an additional 5.1 million shares.
Shares are expected to begin trading Thursday on the New York Stock Exchange under the ticker “CRCL.”
USDC is the seventh-largest cryptocurrency, per CoinMarketCap, with a market cap of about $61.5 billion.
–Aaron Rennie
Five Below Soars on Strong Results, Boosted Outlook
4 hr 20 min ago
Five Below (FIVE) shares jumped Thursday, a day after the discount retailer posted better-than-expected results and boosted its full-year outlook on an increase in transactions and sales at new locations.
The company that advertises it sells merchandise at $5 or less reported first-quarter adjusted earnings per share (EPS) of $0.86 on revenue that soared nearly 20% year-over-year to $970.5 million, as well as same-store sales that grew 7%. All topped Visible Alpha consensus estimates.
CEO Winnie Park said Five Below saw “broad-based strength across the majority of our merchandising worlds.” Park noted the same-store sales increase was “transaction-driven,” and new stores put in a “strong performance.” The company added 55 outlets in the period, and plans to open 30 more in the current quarter.
Five Below expects full-year adjusted EPS of $4.25 to $4.72 compared with its previous outlook of $4.10 to $4.72, and sales of $4.33 billion to $4.42 billion, up from its earlier projection of $4.21 billion to $4.33 billion.
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Shares of Five Below were up 8% recently, trading at their highest level in about a year.
–Bill McColl
PVH Sinks as Calvin Klein Owner Says Tariffs Will Hurt Profits
5 hr 5 min ago
Shares of PVH (PVH) plunged in early trading Thursday, a day after the apparel maker warned full-year profit will be dragged down by new U.S. tariffs.
The company behind the Calvin Klein and Tommy Hilfiger brands reported it now sees 2025 adjusted earnings per share (EPS) of $10.75 to $11.00, down from its earlier outlook of $12.40 to $12.75. It explained that the guidance “reflects an estimated net negative impact related to the tariffs currently in place for goods coming into the U.S., including an approximately $65 million unmitigated impact to full year 2025 EBIT, or approximately $1.05 per share.” It added the effects would be partially offset by “planned mitigation actions” in the second half of the year.
CFO Zac Coughlin said PVH was “decreasing our outlook for profitability and earnings per share to reflect that backdrop and the current performance of our business.”
The news offset better-than-expected first-quarter results, boosted by demand in the Americas and Europe, Middle East, and Africa (EMEA). The company posted adjusted EPS of $2.30, with revenue rising 2% year-over-year to $1.98 billion. Both exceeded Visible Alpha forecasts.
Sales in the Americas were up 7% to $608.4 million, and 5% to $927.7 million in EMEA. However, sales tumbled 13% to $351.7 million in the Asia-Pacific region, and licensing revenue dropped 1.5% to $95.8 million.
Tommy Hilfiger sales grew 3.4% to $1.05 billion, while Calvin Klein sales were basically flat at $886.1 million. Sales of its Heritage brand fell 5% to $49.4 million.
PVH shares were down 19% in recent trading. The stock has lost nearly half its value since the start of the year.
–Bill McColl
Watch These MongoDB Levels as Stock Pops After Earnings
5 hr 43 min ago
MongoDB (MDB) lifted its full-year outlook and boosted its stock buyback program, sending shares of the AI-powered software sharply higher on Thursday.
The company said its flagship Atlas multi-cloud database subscription offering, which accounts for the lion’s share of net sales, recorded revenue growth of 26% in its latest quarter, adding that the firm also registered the highest total net customer additions in six years as enterprises and startups seek to modernize existing software and build new AI applications.
Heading into MongoDB’s earnings, the stock was 14% lower over the past 12 months but had recovered 42% from its early-April low amid a strong rebound in AI software stocks. The stock was up 15% at around $229 in early trading Thursday.
MongoDB shares have carved out an inverse head and shoulders-like pattern between March and June, paving the way for a bullish upside reversal.
More recently, the pattern’s right shoulder found support just above the 50-day moving average (MA), with the relative strength index (RSI) confirming strengthening price momentum. That momentum could accelerate in Thursday’s trading session following the company’s better-than-expected quarterly results.
Investors should watch crucial overhead areas on MongoDB’s chart around $253, $298, and $355, while also monitoring a key support level near $212.
–Timothy Smith
Major Index Futures Holding Steady This Morning
7 hr 27 min ago
Futures tied to major U.S. stock indexes were each up less than 0.1% in recent trading.
Dow Jones Industrial Average
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Nasdaq 100
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