5 big earnings reports: Jefferies, Lululemon

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Here are the 5 biggest earnings releases to start the week, all covered in real time on InvestingPro.

Jefferies Financial Group (NYSE:JEF) shares dropped more than 2% after hours Monday following the company's posted 52.5% drop in profit for Q4, attributed to decreased underwriting fees and volatile markets that affected income from trading desks. However, the company's investment banking revenue, while down 38% from an off-the-charts 2021, had its second-best year and was significantly higher than in 2019. Q4 EPS was $0.57, in line with the consensus expectations, while revenue of $1.44 billion came in better than the consensus estimate of $1.17 billion.

Lululemon Athletica Inc (NASDAQ:LULU) shares plunged more than 9% after the company updated its Q4 guidance. While Q4 revenue is expected to come in better than the consensus estimate, the company disappointed investors by anticipating Q4 gross margins to decline 90-110 basis points compared with its previous expectation for an increase of 10-20 basis points. Q4 EPS and revenue are now expected to be in the range of $4.22-4.27 and $2.66-2.70 billion, compared to the prior guidance of $4.20-4.30 and $2.61-2.66 billion, respectively.

Shares of Five Below (NASDAQ:FIVE) gained more than 5% after the company announced it expects Q4 and fiscal 2022 results to come in near the high end of its guidance range. The company announced that net sales for the Holiday Period (October 30, 2022, to January 07, 2023,), which includes New Year's Day, grew 11.2% year-over-year to $1,003.7 million. The company's previously provided guidance given on its Q3/22 earnings call saw sales between $1.08 billion and $1.10 billion for the entire Q4.

Macy’s Inc (NYSE:M) shares closed more than 7% lower after the company announced updates to its Q4 sales and adjusted EPS guidance. Net sales are now expected to be at the low-end to mid-point of the previously issued range of $8.161 to $8.401 billion, while adjusted EPS is expected to be in the previously issued range of $1.47 to $1.67.

Abercrombie & Fitch Co. (NYSE:ANF) shares surged more than 8% after the company updated its outlook for Q4 and fiscal 2022. The company now expects Q4 net sales to be up 1%-2% (vs. previous expectations of down 2%-4%) and operating margin to be 6%-8% (vs. previous expectations of 5%-7%). For the full year, the company anticipates net sales to be down around 1%, compared to the previous expectation of down 2%-3%.

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